Hammonds is close to reaching an agreement with its dissenting Italian partners, but must reach profit per point levels of £12,000 to ensure that its profitable Hammonds Rossotto branch remains with the firm.
In May, The Lawyer revealed that Italian managing partner Riccardo Rossotto had delayed the full integration of the 2002 merger between Hammonds and Rossotto e Associati.
The Lawyer understands that the transition agreement, currently in draft form, will see Rossotto and his partners stay with the firm for a further two years. But if the £12,000 per point mark is not reached within 12 months, the Italians are reserving the option to pull out.
Hammonds managing partner Peter Crossley confirmed that the firm was in the midst of negotiations with Italy, saying that he hoped to reach a successful conclusion by October. Crossley added that the transition period agreed will be backdated to the start of this financial year. Rossotto declined to comment.
In the UK, Hammonds’ strategic review of the firm’s future direction has progressed to its second stage.
After an analysis of the firm, partners were asked to catalogue clients into groups. The next step, due to start this week, will see Hammonds examine the ways it can best deliver what clients want.
Tax partner Bernhard Gilbey, who is leading the review, said: “It’s going well – there’s good support for it and people are very comforted by the quality of work that’s been produced so far.”