Addleshaw Goddard is set to convert to a limited-liability partnership and spin-off its bulk housing business Enact, probably through a management buyout (MBO).
Addleshaw Goddard, the product of a merger between national firm Addleshaw Booth & Co and City firm Theodore Goddard on 1 May, was planning to start life as an LLP, but this was derailed by plans to push the merger through quickly.
“The average time for converting is four to six months, but it’s a case of when, not if,” said Addleshaw Goddard managing partner Mark Jones. He said Enact, inherited from the legacy Addleshaw Booth, does not fit with the strategic direction of Addleshaw Goddard.
Jones admitted that the solution probably was an MBO. This year, Enact’s £10m turnover was reported separately from Addleshaw Booth’s gross fees of £90m.
“We’ve discussed this with the management of Enact,” said Jones. “There’s been a gradual process of separation from this business over the past three years.”
“There’s no long-term strategic fit between Enact and a law firm that aims to position itself in the top 20 nationally,” he added.