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Overview
A strong performer in recent years, buoyed by two well-executed mergers, one of them the largest City tie-up yet secured by a national practice, Addleshaw Goddard is viewed as positioning itself well at the top of the national scene, while making a decent stab at the City mid-market.
Rivals to the 800-lawyer practice would be national players like DLA Piper and Eversheds, while Addleshaws competes with a wide band of firms in the Square Mile outside the City’s top 10.
Having grown quickly in recent years the firm is now the 16th largest UK legal practice in revenue terms, generating £176.7m in fees in 2006-07. The firm has also managed to upgrade its profitability, up 14.8% to hit an equity partner average of £542,000 in 2007, heading off the familiar criticism that Addleshaws cannot convert its quality client-base into bottom-line performance.
The firm has shown a progressive touch too in recent years, becoming one of the first law firms to introduce an alternative to partnership in 2004 and also making early commitments to diversity initiatives and corporate social responsibility. The firm in addition wins plaudits for setting up one of the slickest websites yet seen from a law firm.
A key issue for the firm now will be maintaining its attack on the City, where it will have to raise its game to seriously compete against muscular outfits like Macfarlanes and Travers Smith. Likewise, Addleshaws will have to prove that it can sustain its upward trajectory despite having eschewed the international expansion seen at many of its rivals.
History
Formed from two mergers: the tie-up between Manchester’s top firm, Addleshaw Latham & Sons, and Leeds’ Booth & Co in 1997; and the 2003 takeover of London practice Theodore Goddard. The firm’s recent history was also partly defined by its decision in 2002 to cut 11 equity partners - a move that was designed to raise its profitability and bolster its chances of securing a decent London merger.
It was a risk many felt the firm would regret taking but, with the TG deal secured the following year and little fall-out in the wake of the merger, it appears to have paid off. Indeed, despite the firm announcing 30 support staff redundancies in the wake of the London merger (apparently due to duplication of roles rather than cutbacks), the integration of TG has gone more smoothly than many expected, probably in part because Addleshaws had learned a lot about integration with its Leeds/Manchester union.
The tie-up with TG was also aided, perversely, by a stream of senior departures at the City firm ahead of the deal, which had made TG essentially put itself up 'for sale’ to a larger law firm.
In the wake of the TG merger, Addleshaws went against the trend of national firms expanding internationally to explicitly focus its efforts on integration, improving profitability and attacking the lucrative City market. The strategy was by all accounts successful, with Addleshaws swiftly improving its finances during this period, turning an £11m overdraft in 2003 into a £7.5m surplus by 2005, a move that provided a ‘war chest’ for City expansion.
This period was also to see a number of senior appointments, including the recruitment of O’Melveny & Myers private equity partner Andrew Carpenter and the hire of a high-billing construction team from Hammonds in Leeds. The firm in 2006 re-elected its managing partner Mark Jones for a fourth term, making him one of the longest-serving leaders at a major UK legal practice.
Recent months have seen the firm maintain its expansive form, recruiting projects partners Andrew Petry and Natalie Elphicke, respectively from Freshfields Bruckhaus Deringer and Denton Wilde Sapte, and O’Melveny acquisition finance partner Michael Crosby.
In February 2008 the firm announced plans to bring the majority of its London-based lawyers - previously split across several locations - under a single roof at Milton Gate, Moor Lane.
More news, deals and comment on Addleshaw Goddard
Culture
A selling point. Being focused in only three locations has avoided some of the turf wars that have afflicted national rivals. Has a reputation for being ambitious without excessive ruthlessness. Culturally, the original 1997 merger is regarded as having paid off, with the energetic Booth & Co partnership injecting a bit of fire into the old-school Manchester firm’s belly.
Indeed, the union was notable for avoiding many of the trans-Pennine culture-clashes that have dogged other national firms operating across Leeds and Manchester. There was little sign of cultural tensions with London following the TG union, either.
The firm also has a good reputation for treating its staff and career development in general.
Key departments
A genuine full service firm - all the main commercial disciplines are well represented. Property has been a particularly strong performer of late, contributing £50.8m out of the firm’s 2006-07 turnover of £176.7m. Historically well known in private equity thanks to a long association with 3i, Addleshaws has one of the best corporate practices among its national peer group.
National/international coverage
Manchester, Leeds and London. The firm has been unusual in studiously avoiding international expansion to focus on its domestic practice. In recent years Addleshaws has been putting more effort into building its referral relationships.
The firm describes its international strategy as “establishing strong, non-exclusive relationships with a small number of firms in key European jurisdictions (and other non-US jurisdictions as appropriate)”. Its relationships are looser in the US, though it has pledged to build up its referral links.
It is fair to say Addleshaws’ international strategy is still something of a work in progress.
Key clients
The firm’s main focus is on advising FTSE 350 clients. Trophy names include 3i, KBC Peel Hunt, Sainsbury’s, Associated British Foods, Royal & SunAlliance, Nationwide, BT, Thales, Travelodge, drinks giant Diageo and United Utilities. In the financial services sector, major clients include Standard Life, HSBC and Barclays.
The Department of Health is a substantial public sector client.
Leading partners
Key corporate names include Sean Lippell, Paul Devitt, Richard Lee, Mike Hinchcliffe and Ian McIntosh. Senior property lawyers include Mark Haywood and Richard Wheeldon. Managing partner Mark Jones (pictured) is well regarded, while partnership specialist Richard Linsell is a star in his field.
Others pointed to as leading performers include Adam Bennett (building societies); Philip Goodstone (structured real estate); Simon Kamstra (litigation); Richard Kempner (IP); Richard Papworth (social housing finance); Malcolm Pike (employment); Rachel Rawnsley (pensions); and Phil McDonnell (competition).
Career prospects
Reasonable, in that the firm has grown considerably in recent years and has been a solid financial performer. However, only five were promoted to partner in the 2007 round and the firm’s propensity for lateral recruitment has arguably affected chances of internal promotions (Addleshaws has hired more than 30 lateral partners since its merger with TG). Those that do make it to partner have a reasonable shot at making equity, as around two-thirds of its 180-odd partnership currently have equity status.
Below partner level, assistants have scope to win promotion to the role of managing associate, a new role that was introduced in 2007 for lawyers with four years’ qualification experience. The role, which is already held by more than 130 lawyers at the firm, carries an additional £5,000 annual salary and extra holiday. The firm also has a director role, which functions as an alternative to partnership.
Salaries
Viewed as one of the more generous national firms, a reputation Addleshaws sealed this year when it unveiled an aggressive string of pay rises, including a 21% pay hike for its City assistants. London-based NQs now pick up £64,000 - pretty much matching top City rates.
One Wiki contributor says that Addleshaws this year “has broken the cosy Manchester consensus. I could almost hear the equity partners of Manchester choking on their cornflakes as they struggled to the realisation that they are going to have to get their wallets out.”
That comes after assistants in Leeds and Manchester saw pay rise sharply in 2007, with the newly-qualified rate rising from £35,000 to £40,000.
Another poster says: “It’s also worth noting that Addleshaws have a decent bonus scheme and their NQs can easily earn three or four grand on top of their £40k.”
A third gushes: “Well done Addleshaws - finally, a national firm showing it cares for its regional offices, especially considering that Addleshaws pay a bonus on top of that pay, unlike the other nationals. May be I should move to Addleshaws on qualification.”
Trainees in London are on £36,000. Up north, they trouser £24,750.
Recruitment
The firm takes on about 50 trainees a year and offers around 90 summer vacation scheme placements. Key contacts include graduate recruitment manager Brett Galloway and resourcing manager Janet Sandford.
The firm’s slick website offers podcasts with more information for trainees, which you can access by clicking here. Or just click here for more general careers information.
Work-life balance
Better than the average City firm, though Addleshaws has shown a slightly more ruthless streak in recent years to the extent that it is more hours-centric that the some comparable national and regional practices. Nevertheless, the firm is quick to trumpet its ranking in the Sunday Times 100 Best Companies To Work For survey. The firm gets more credit for offering flexible options than actually delivering them but compared to many top 25 law firms, it puts in a decent showing.
Diversity
Corporate social responsibility/pro bono
Addleshaws was one of the first major UK law firms to make substantial commitments to CSR. Click here for more details on the firm’s activities. Initiatives Addleshaws currently supports include the Northern Film School, Habitat for Humanity and the National Autistic Society.
