Cobbetts and DWF look ahead after merger collapse
Law firms Cobbetts and DWF have not ruled out growth by merger despite calling off preliminary talks about joining together. The two firms, which both have Birmingham bases, dramatically called off their potential merger yesterday (31 January 2012) following concerns about market uncertainty.
The two firms previously talked about agreeing a "mutually beneficial strategic partnership" as part of attempts to seek "partnership opportunities".
In a statement released on behalf of both firms yesterday, they said: "The preliminary discussions between DWF and Cobbetts regarding a potential merger have now come to a conclusion and we have made the decision not to progress these talks any further due to the current uncertainty in market conditions."
But the two firms chose not to close the merger door shut and are willing to seek further possibilities.
They added: "Growth by merger and lateral hires continues to be an option for both firms but until any discussions are brought to a conclusion, we will not be in a position to talk about them publicly."
DWF posted a 15 per cent rise in turnover to £83m in the year to 30 April 2011, while profits per equity partner rose to £390,000 from £333,000 in 2010, a 17 per cent rise.
Cobbetts meanwhile posted turnover of £44.5m in the same reporting period, up from £43.8m a year earlier. Net profits dipped from £10.5m to £10m.
DWF's managing partner Andrew Leaitherland previously said: "DWF is one of the fastest growing law firms in the UK; we've achieved double digit growth year-on-year for the past 18 years and top 30 status is well within our reach.
"Lateral hires and strategic mergers are a key part of our growth strategy and it is entirely consistent with this strategy that we should be in talks with any number of different parties to discuss the potential for a mutually beneficial strategic partnership."
Stephen Benson, senior partner at Cobbetts, also previously told reporters: "We continually seek to develop our business in a dynamic market, through strategic alliances and lateral hires as well as seeking partnership opportunities which would provide benefits to our clients and the business as a whole."
