As the year-end approaches, all financial metrics will come under the microscope, including debt. And recent events suggest that attitudes towards debt levels are changing.
Once the thought of a firm with a multi-million pound debt facility would have filled a partner with dread. Now a growing number of law firm leaders are looking to the bank to fund growth.
In what is a potential game-changer, Irwin Mitchell has agreed a £60m funding facility with three banks along with an additional £30m buffer deal. This was a firm that posted a revenue of £200.2m in 2012/13 for its portfolio of legal and associated businesses.
And Irwin Mitchell is far from alone in pushing up its debt levels. Research for our upcoming debt issue on 7 April shows that just 28.1 per cent of the 153 firms in our sample have zero debt, while the total debt among this group is £820m. Should they be concerned?
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