It is a little more than a year since Lawrence Graham called off merger talks with Field Fisher Waterhouse, but the firm is back at it, this morning telling partners of top-level merger discussions with Wragge & Co.
Combined the pair would create a £170m firm, but as any lawyer that has seen merger activity in the last few years knows, that is just the beginning of the story.
For many merging firms financial alignment is a top priority. Back in May legacy Herbert Smith issued a £20m cash call to equity partners in a move aimed at boosting capital structure to bring it into line with Freehills. Ashurst did the same six months earlier following its tie-up with Blake Dawson.
Now DAC Beachcroft is joining the action, building a £50m funding pot with a £10m cash call and four-year deal with the bank for a £40m facility.
Profits took a hit at LG at the latest year-end, thanks largely to some heavy property costs. We await news of the nifty financial management that is going to get this one off the ground.
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