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Mishcon de Reya ponders stock market flotation

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City firm mulls doing a DWF in bid to raise capital, according to report

Mishcon de Reya is said to be considering a stock market float or stake sale in a move that would value the City player at “several hundred million pounds”.

According to Sky News, Mishcon is currently exploring two ways of raising capital: either by listing itself on the public stock market in hope to attract new investors or selling off a stake to a private equity investor. The move, if given the go-ahead, could generate big payouts for the outfit’s 156 partners. Mishcon is set to appoint bankers in the coming months to inspect its options.

However, the firm, who acted for anti-Brexit campaigner Gina Miller in her successful legal battle that forced the government to seek parliament’s approval before triggering Article 50, has yet to make any formal decision about the stock market manoeuvre.

A spokesperson for Mishcon said:

“Mishcon de Reya has delivered significant growth over the past 15 years. As a financially robust‎ and dynamic firm we have ambitious plans for the next phase of growth and to achieve this are considering all options for raising capital. No decisions have yet been made.”

A listing, which is unlikely to take place until next year, would see Mishcon join a number big legal players already found on the public market. The first to float was Gateley in 2015, and has since been followed by Gordon Dadds, Keystone Law, Rosenblatt Solicitors, Knights Law and DWF.

The 2019 Legal Cheek Firms Most List

The potential initial public offering (IPO) value of Mischon, known for representing Princess Diana during her divorce from the Prince of Wales, is unclear. Depending on the amount raised from the sale of its new shares, reports indicate the firm could eventually match international outfit DWF, which boasts a market value of £368 million since floating earlier this year.

Founded in 1937 in Brixton, South London, Mishcon currently sits within the top 30 UK law firms by revenue, which increased 8% to £161.3 million last year, a slight slowdown on its 17% growth the year before. Profit per equity partner fell by 9% to £1 million. Mischon is set to release its latest set of annual figures this week.

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19 Comments

Anonymous

Dreadful idea.

(5)(0)

Waggy Dog Dog

Definitely.

Any firm that rhymes with “Fishpond Diarrhoea” will not float.

(0)(0)

Anonymous

If I was a partner I would cash in too. Ker chinggggggg

(4)(0)

P Bateman

Someone get me my broker – I’m about to place the biggest short anyone has ever seen.

(4)(0)

Anonymous

BTEC Macfarlanes. Gtfo.

(6)(1)

Slaughters NQ

and Macfarlanes is a BTEC Slaughters.

(5)(1)

Kirkland NQ

And Slaughters is a BTEC Kirkland.

(5)(6)

Anonymous

And Kirkland is a BTEC Greenberg Glusker (!!!)

(9)(1)

Anonymous

And Greenberg Glusker is a BTEC Dewey & LeBoeuf

Anonymous

You guys and your dick waving.

🙂

Anonymous

Dewey and LeBoeuf is just a BTEC White and Case

Anonymous

“£161.3 million last year”

That’s phat for a one office shop like Mishcons.

(5)(0)

Cadwalader Trainee

Hefteh

(0)(0)

Anonymous

Except that Cadwalader doesn’t have trainees, dickwad

(1)(2)

Cadwalader Trainee

Yes, they do. Like many other US firms in London they do not advertise and offer on an ad hoc basis.

(0)(0)

Anonymous

I honestly can’t see why a City firm listing could be seen as a good thing (for anyone but the partners). Law firms aren’t exactly capital intensive.

Yes, there’s a huge gap between doing the work and getting paid for the work (during which you have to pay many of the costs incurred doing the work). But for an established firm that’s effectively a one off cost in the first few months: you’re constantly being paid for the work you did 6 months ago.

For a firm like Mishcon, the gearing (the ratio of associates to partners) and the PEP are such that any capital requirements should surely be affordable for the partners to contribute. If the partners aren’t willing to cough up, then that should be a massive red flag.

Added to that, one of the drivers of promoting associates to partners (that they’ll share in the risk) gets removed, as do the profits that would be spent compensating new partners (which go on dividends).

(13)(2)

Ben Fellowes

Nice latrines.

(0)(0)

Anonymous

Anyone using “robust” in their statements is putting up a massive flag for failure. Robust has almost become the complete antithesis of its meaning when used in law.

I would fire whoever decided to use that word now.

(4)(0)

Anon

This is because several of the old guard mischon partners are reaching retirement. Don’t believe a word of the ambitious plans twaddle. Silly idea , no lawyer toils for their junior years to end up as a slave to the stock price

(0)(0)

Comments are closed.

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