Profit per equity partner: £709,000
Equity spread: £147,000-£1,120,000
Net profit: £10.6m
Profit margin: 44 per cent
Salaried partner remuneration: £75,000-£250,000
Revenue per lawyer: £436,000
Revenue per partner: £1,600,000
Revenue per equity partner: £4,800,000
Cost per lawyer: £244,000
Profit per lawyer: £193,000
No of partners: 15
No of equity partners: Five
No of female partners: One
No of female equity partners: None
Total no of fee-earners (including consultants, paralegals etc): 65
Total no of fee-earners (excluding consultants, paralegals etc): 55
Total no of staff: 75
Leverage ratio: 1:8
Equity partner to staff ratio: 1:2
Fee-earner to staff ratio: 1:0.15
Financial management: The age profile of WIP varies enormously because under the abort fee system the firm bills for big private equity deals very quickly, particularly if they were successful. Other bills are sent out on a client-by-client basis. Incidentally, this is a major impediment to a US merger. Average recovery rate touches 100 per cent on agreed bills, with only ever one large bad debt in the history of firm. For accounting purposes, bad debts are written off after 90 days but there are no bad debt provisions. The average equity partner capital contributions are £150,000.
Equity structure: The firm operates a merit-based system with profit sharing committee of three senior partners. Criteria are merit, seniority and last year’s contribution.
Billable hours targets: None
Key clients: BC Partners, Candover, Charterhouse, CVC.