Twenty-two percent of respondents to the survey – which was conducted by financial services firm Smith & Williamson and polled 96 of the
Among those open to outside investment, more than half (57%) said they would look to private equity or venture capital investors for backing, while 43% said a public listing was their preferred option for generating cash.
The results come a week after the Legal Services Act received Royal Assent, putting the rubber-stamp on reforms that will make the UK the world’s most liberal legal market – although Australian firm Slater & Gordon earlier this year made history as the first law firm to list on a stock exchange.
Commenting on the findings, Smith & Williamson director Giles Murphy said the firms that decided to float on the public markets were unlikely to come from the top end of the market.
He said: “There has been an assumption that the first wave of flotations would come from larger
A corporate partner at one top 10 UK firm said he would be “amazed” if any large City firms were considering taking on external investment, commenting: “I think you’ll find that it’s the smaller, less well-capitalised firms that will find this useful.
“There is not an obvious case for why a sound, well-run large law firm needs outside capital – if you need it, you will be less attractive to investors.”