Cobbetts

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Overview

A mid-tier Manchester player turned aspirant national, Cobbetts - best known for its property expertise - is currently more likely to draw comparisons with the likes of Beachcroft and Halliwells rather than true national heavyweights such as Eversheds or Addleshaw Goddard.

Cobbetts expanded rapidly in the first half of the decade through a string of merger deals but experienced severe growing-pains accordingly, most notably a testing round of restructuring in 2006. Despite the cuts, profitability remains an issue, with Cobbetts among the least-profitable firms in the UK top 50.

With established offices in Birmingham and Leeds as well as its home town, Cobbetts has a presence in the UK's largest regional markets, as well as a fledgling City operation. 2008 is set to be another crucial year for the development of the firm, which hopes to reap the benefits of a series of changes led by long-serving managing partner Michael Shaw.

"The next few months will be very important for the firm," said one insider back in 2007. "There are many who have stayed loyal to the firm throughout its problems over the last few years and the time has come for those people who have consistently performed to be rewarded in terms of promotions and significant salary rises. Otherwise, it is likely that there will be an exodus, with national rivals on aggressive recruitment drives within Manchester."

"Cobbetts may just have turned the corner after a difficult few years," observes another poster. "The main challenge seems to be integrating the Birmingham office and once the firm manages that, it will be a national presence to be reckoned with."

History

The most recent chapter in Cobbetts' history arguably begins with the appointment in 1996 of Michael Shaw (pictured) as managing partner. In 1998 he lead the firm into merger talks with local rival Halliwell Landau - an aggressive firm with which Cobbetts was said to have little in common culturally. The talks were unsuccessful and it would be three years before Cobetts returned to the merger trail.

By that time, Manchester's established mid-tier - including rivals like Pannone and the ill-fated Chaffe Street, as well as Cobbetts - were coming under pressure from the raft of increasingly voracious nationals, Pinsent Curtis Biddle becoming the last of the big nationals to enter the Manchester market in 2001. Cobbetts again went hunting for merger partners - this time with success. A tie-up with 18-partner Yorkshire firm Read Hind Stewart went live in May 2002, giving Cobbetts its first presence outside its home town - with offices in Leeds and Hull (although this was subsequently closed). A pledge for heavy investment in Leeds saw a series of hires follow.

Talks then began with Midlands firm Lee Crowder, marking Cobbetts' intentions to go national. As the long-running discussions dragged on, Cobbetts unexpectedly snapped up Manchester corporate/commercial boutique Fox Brooks Marshall, adding depth to a transactional practice that Cobbetts' critics had regarded as underweight.

The Lee Crowder merger finally went ahead in May 2004, although rivals were largely underwhelmed by the move, pointing to the raft of senior departures endured by the troubled Midlands firm in the 18 months before the deal.

Further acquisitions saw respected Leeds planning boutique Wilbraham & Co come under the Cobbetts banner in the summer of 2004, soon followed when the Leeds arm of housing specialist Walker Charlesworth & Foster switched allegiances to Cobbetts.

By mid-2005 - the year Cobbets converted to LLP status - the firm had swollen to almost 150 partners, with profits per equity partner dipping to £190,000 despite the surge in revenues guaranteed by merger activity. A sweeping practice review was implemented late that year, which would ultimately result in more than 20 partners being edged towards the door.

A high point in early 2006 saw private equity regional heavyweight Sean Fitzgerald join from Pinsent Masons as Cobbetts targeted the sector. However, profits remained static that year despite the managed exits and the firm's unusually high leverage, although some good news came when it was revealed that Cobbetts had cleared an overdraft that had at one stage stood at several million pounds.

In April 2006 the firm hived off its 11-lawyer family department to northwest firm DWF and made its London debut in 2007 after hiring a brace of partners from Wedlake Bell, further underlining the firm's shifting priorities.

The results of the restructuring started to become evident too, with a 26% rebound in PEP taking profits to £240,000 for 2006-07, growing to £305,000 for 2007-08, while a £750,000 bonus pot was also established for all staff except equity partners. Despite this, Cobbetts was the least profitable firm in the Legal Week Top 50 that year.

Another major step came in early 2008 with the news that the salaried partner rank was being axed in favour of two modified equity partner roles. Cobbetts also ushered in a rank of legal director for lawyers of between seven and 10 years' PQE.

However, the firm was hit hard by the 2008 downturn, with two redundancy consultations in as many months.

News, deals and comment on Cobbetts

Culture

"Morale is reasonable, considering the number of high-profile departures," says one Cobbets contributor, "and there is a sense within the firm that the only way is up. The efforts of Michael Shaw and the management in general to keep staff informed of progress are appreciated."

Indeed, its culture has been a traditional strength of the firm, which in its Manchester heartlands has long prided itself on treating its staff well and maintaining a collegiate partnership. Current indications are that this quality is standing Cobbetts in good stead as it attempts to move on from that unsettling restructuring.

Key departments/leading partners

The traditional bedrock of Cobbetts' practice was real estate, where the firm would be viewed as one of the leading practices in the northwest and in which the firm can now claim to have a credible national practice that can duke it out with larger rivals like Eversheds and Wragge & Co. Key partners include Stephen Benson on the commercial side and litigators Alan Walker and Peter Stone.

The firm's reach in real estate also extends to a highly-rated social housing practice, which was substantially upgraded via its Birmingham and Leeds mergers. Key lawyers in the sector include Philip Heath, Andy Ballard and Colin Birtwistle.

The firm also has well established practices in discreet areas such as licensing, charities and debt recovery. However, as a full-service outfit, Cobbetts has yet to build the kind of practice that can really compete with the largest national firms in the key commercial disciplines.

Former Eversheds Leeds development head Tiffany Cloynes, who joined Cobbetts' property team in 2005, is named by one contributor as a leading performer, as are the ex-Pinsent Masons partner duo of Sean Fitzgerald and Paul Johnson in corporate.

Indeed, while property continues to account for "about one-third of the fee income", a "revitalised" corporate team has reportedly made "great strides over the last year" under the leadership of Fitzgerald.

National/international coverage

As part of a band of aspiring nationals, Cobbetts has developed a presence in the UK's primary regional markets, having added based in Leeds and Birmingham to its Manchester heartland.

In 2000, Cobbetts became the Manchester member of US-headquartered network the State Capital Group, whose other UK members include Wragge & Co in Birmingham and Mills & Reeve in Cambridge. Cobbetts also has a continuing relationship with legacy Brussels boutique Stanbrook & Hooper, which specialises in EU law and became part of McDemott Will & Emery in 2005.

Key clients

"Peel, Easygroup and a number of large residential developers have all chosen Cobbetts in the past year," notes one Cobbetts loyalist, while the firm won a place on the Government's 'Catalist' super-panel in summer 2007.

Career prospects

"There are a large number of people unhappy about the a high number of lateral hires who have joined the firm and brought little, if anything, to the party aside from [the] liabilities of high salaries," complains one contributor. "It is felt that the recruitment strategy of the last few years has stifled home-grown talent."

For those coming through the ranks, making the equity is far from straightforward. The firm has around 30 partners on full equity status, from a total partnership of well over 100.

Salaries

Recruitment

Click here for general recruitment information about Cobbets. For graduate recruitment, the contact is Laura Williams.

Work-life balance

Pro bono/corporate social responsibility

You can read Cobbetts' take on its CSR activities by clicking here.

Diversity

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