Shakespeares, Needhams merge to create £24m Birmingham giant
Birmingham-based Shakespeare Putsman is to merge with Midlands rival Needham & James, creating a £24m, 56-partner firm.
Paul Wilson
Birmingham-based Shakespeare Putsman is to merge with Midlands rival Needham & James, creating a £24m, 56-partner firm.
The deal is set to go live on 1 July. It follows the merger of Shakespeares and Putsmans three years ago, which created a firm that posted revenues of £18.3m last year, and underlines the current acceleration of consolidation in the UK legal market.
Paul Wilson, Shakespeare Putsman chief executive said the extreme economic conditions experienced over the past two years had intensified competition and complexity within the legal marketplace.
“Our clients’ are rightly increasing their demands for exceptional technical expertise, a broader range of legal services and greater value for money,” Wilson stated. “This merger provides us with additional capability across a number of practice areas and will significantly strengthen our private client and property services, including the addition of a very experienced and nationally regarded social housing team.”
The new firm will be called Shakespeare Putsman, with the Needham & James brand disappearing except in its Stratford office.
Herbert Andrews, Needham & James’ managing partner, said: “In recent years we’ve recognised that in order to continue to service our clients’ expanding requirements we need to be part of a larger organisation. By joining forces with Shakespeare Putsman we can make the necessary investment and continue to provide exceptional service to our clients across the UK.”
Needham & James’ revenue last year was £7.3m, down from £8.9m in 2008-09. In January this year the firm’s senior partner John Hughes revealed that the firm was looking to bulk up in anticipation of the challenges raised by the Legal Services Act (4 January 2010).
Readers' comments (16)
Anonymous | 8-Jun-2010 3:36 pm
Giant? £24M is barely in the top 100...I am sure the Magic Circle are awake at nights! the market is trashed and so called mergers are really troubled firms clinging together. Expect more in short order.
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Anonymous | 8-Jun-2010 6:05 pm
Love the photo!
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David Ufuoma Omamogho | 8-Jun-2010 7:02 pm
The merger can be likened to a SEED that has been planted on fertile and blossoming soil and as they water it with their talents, gifts and expertise the firm will harvest commensurate profits.
Good luck to their endeavours.
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Anonymous | 9-Jun-2010 8:59 am
56 partners divided into a turnover of £24M is way too many, expect some immediate cuts here
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Anonymous | 9-Jun-2010 9:23 am
Let's do the maths for this so called giant - £24m of fees - 56 partners = £430k revenue per partner. Be genereous 1/3rd staff cost, 1/3rd overhead, 1/3rd profit = £140k profit per partner. Sounds like one or both of the firms were in trouble - let's wait for the fall out.
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Anonymous | 9-Jun-2010 9:42 am
Agree with the first poster. '£24m' and 'giant' should not really be in the same headline.
It's not terribly important, but the same misnomer was used in The Lawyer when Shakespeares and Putsmans merged in 2006 (although it was 'Brum giant' rather than 'Birmingham giant').
Who is hardest at work here; Paul Wilson's PR team or his ego?
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Rory MccGwire | 9-Jun-2010 9:43 am
The usual barbed comments above...
These firms recognise how quickly the legal market is changing and want to be one of the survivors. Of course there will be some post-merger adjustments, this is all part of having a plan for the future.
Smaller firms are taking smart steps too. Have a look at the resources on websites such as Andrew Jackson, or Shulmans.
Rory MccGwire, www.lawdonut.co.uk
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britomart | 9-Jun-2010 10:06 am
@anonymous 9:42am, I think the headline is amusing but on reflection it's pretty accurate as a £24m firm is a big deal in the regions. Not everyone is Clifford Chance!
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Anonymous | 9-Jun-2010 12:40 pm
britomart | 9-Jun-2010 10:06 am
In fact, not even Clifford Chance are Clifford Chance any more...
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Anonymous | 9-Jun-2010 2:20 pm
Not everyone is Clifford Chance ...
But £24m isn't even a part of Wragges or the Eversheds Birmingham office.
'Needham & James continues to be the brand name in Stafford' - then bets are that's the first to go.
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Anonymous | 9-Jun-2010 4:15 pm
Stratford not Stafford
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Anonymous | 9-Jun-2010 4:38 pm
To be fair, I don't think the new firm would call itself a giant and obviously its competition is not going to come from the Magic Circle. However, £25M is enough to be considered a decent size for a one or two city Regional firm and sets it in a peer group of Ward Hadaway, Brabners and Gordons, to name but a few. Those are good firms providing Regional clinets with excellent service - there's no reason why Shakespeare Putsman can't emulate that.
It would appear that the merger has been brought about by one or both firms struggling. That's no crime given the winds which have prevailed for the last three years. It would seem that there is work to do - they have recognised that, so good luck to them.
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Anonymous | 10-Jun-2010 1:00 am
I expect many of the partners are salaried partners, so the equity take will be much higher than £140k.
I wonder what it took for Needhams to agree to be swallowed up and whether we will have another http://www.bailii.org/ew/cases/EWHC/Ch/2008/349.html
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Anonymous | 10-Jun-2010 12:27 pm
Its well known in the Midlands that N and J died a few years ago when they took on massive new offices and simply didnt have the financial weight or tough management to get through the downturn. Grossly overstaffed with partners who repeatedly refused to make redundancies when needed coupled with a huge 9 to 5 culture. Having said that they do have some good clients. Whether the ' takeover ' will work remains to be seen but as others have said good luck to them on the rocky road ahead.
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cornholio | 11-Jun-2010 10:45 am
Whilst £24m may not set the legal world alight, the two legacy firms occupied an important niche in the Midlands market. They did not threaten the local heavyweight firms but the very fact that they remain open for business shows that they do have clients out there who appreciate the work they do.
If by consolidating they have extended their shelf life, fair play to them. I wouldn't be surprised to see further similar "mergers" in the regions and indeed, it may be the only way that some such firms can survive. It is the firms that stagnate that will go first.
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Anonymous | 11-Jun-2010 6:02 pm
Merger or takeover? A forced "merger" by their respective bank(s)?
Very likely given that Shakespeare Putsman is a very Partner heavy, 'reverse pyramid' structured firm.
Regarding the words of the CEO [of a law firm? Surely that salary cannot be justified in this market?!], it's the same old rhetoric/spin we've come to see through. It's worth noting that hubris precedes a fall.
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