Solicitors 'tops' for floats advice

COMPANY clients seeking flotations say lawyers are ahead of accountants and merchant bankers in terms of service and value for money, according to survey findings from national firm Eversheds.

Despite general concern over costs, the value for money of advisers was generally seen in a positive light.

The survey reports that 81 per cent of lawyers are either “good” or “very good” value. For accountants the figure is 72 per cent and for merchant banks 56 per cent.

In terms of service, 93 per cent are “satisfied” or “very satisfied” with their lawyers, with accountants at 88 per cent and merchant banks at 75 per cent.

Companies were asked which of the advisers they used during their flotation were the most useful. Sixty-two per cent said their lawyers, 43 per cent chose merchant bankers, 39 per cent brokers, 29 per cent accountants and two per cent auditors.

While most companies are satisfied with the process, suggested improvements include simplifying legal requirements (15 per cent), clearer Stock Exchange rules (10 per cent), and a reduction in bureaucracy to speed up matters.

Cost-cutting should include agreeing fees in advance, proper management and avoiding duplication of effort, say companies.