Andrew Leaitherland talks to Gerard Starkey about his quest for the merger 'Holy Grail'

Whatever anyone may think about DWF and its ambitious managing partner Andrew Leaitherland (pictured), no one could describe either as dull right now. 

Five quick-fire mergers, including the recent acquisition of failed firm Cobbetts for a knock-down price, have ensured the firm has never strayed far from the headlines over the past 18 months and, according to Leaitherland, the firm has no intention of stopping now. 

"People are probably looking at us and are thinking 'bloody hell, what's going on there?'" admits Leaitherland. "Some may not know what to think, but we've not been bolting on for the sake of bolting on." 

With DWF enjoying what seems like relentless growth in recent years, its expansion can be traced back to 2006 when, with revenues of £32m, it overhauled its management structure and installed its first-ever managing partner. 

The switch saw the acquisitive Leaitherland elected to the newly created role, becoming – at 36 years old – one of the youngest leaders of a major law firm. 

"I made it clear before being elected that I wanted to grow the business, which is really powerful because it meant I had a full mandate to execute my strategy. We were a relatively small firm with offices in Liverpool and Manchester, and it came to the point where we had to expand geographically to retain our major clients."

With his feet barely under the desk, Leaitherland oversaw a merger with insurance specialists Ricksons in January 2007, gifting DWF a base in Leeds and bumping up its turnover from £39m in 2006-07 to £54m the following year. 

Describing DWF as having once been "merger averse", Leaitherland says the firm made a conscious decision to take its time in making sure the Ricksons' integration process went as seamlessly as possible: "The merger was very important – we had to ensure we got the integration process right."

It would be five years until DWF returned to the acquisition trail, but within that period it continued to grow organically at a fair rate, with turnover climbing by more than 50% between 2007-08 and 2010-11 to £83m, while profits per equity partner (PEP) hit £388,000. 

In July 2011, it opened in Birmingham with the hire of Shoosmiths asset finance partner Joanne Davis, and six months later – at the start of 2012 – it branched out into Newcastle through a tie-up with local firm Crutes.

"We felt we could compete with the one or two larger firms operating in Newcastle and Crutes was bang on the money. It was strong in insurance but also had a commercial practice, which is what we look for in a merger partner – the Holy Grail, if you like," Leaitherland reasons.

Insurance boutique Buller Jeffries was added to its burgeoning Birmingham base that May, and July saw the firm add its first offices north of the border – Glasgow and Edinburgh – through the acquisition of Scots commercial law firm Biggart Baillie.

DWF announced turnover of £102m and PEP of £412,000 for 2011-12, with Leaitherland setting out his intention to turn the firm into a top 20 UK player by 2015. 

He looks set to achieve this ahead of schedule, with tie-ups this February with professional indemnity firm Fishburns and insolvent Cobbetts adding some 600 staff and looking set to take revenues to around £200m – placing it on the brink of the coveted top 20. 

So, what next for DWF? Another Scottish practice has been mooted, but it seems Leaitherland has loftier ambitions: "Next on our list is to grow further in London. We are considering merger opportunities there, while we'll also be looking internationally. We are a client-led firm, so these are inevitable.

"We are not feeling much pressure from our clients in relation to Europe at the moment so we're looking at the Gulf, Singapore and the Asia-Pacific region. We are just considering our options."

One drawback of DWF's surge up the UK rankings has been its rising debt, but Leaitherland is unfazed by debt levels equivalent to 10% of its turnover: "We refinanced four months ago and, while our debt levels will be higher than what we anticipated at the start of the year, we never thought we would have carried out the acquisitions we have. 

"I'm certain our debt will come in at less than £20m at year-end and, when that's set against a running revenue of £200m, I am comfortable with that."

Some believe the £3.8m price tag agreed for Cobbetts was a shrewd business move that adds a decent commercial practice to its insurance operation. Others, though, have called the pre-pack purchase an example of what they see as Leaitherland's ruthless streak, with several former Cobbetts partners put on notice within weeks of arriving.

"Are we ruthless?" asks Leaitherland. "DWF is a firm that takes decisions quickly – we don't hang about. Never waste a good recession, I say, as it offers opportunities. But ruthless? No – you just need to care enough to take the tough decisions."

DWF merger timeline
Jan 2007 Ricksons 
Jan 2012 Crutes 
May 2012 Buller Jeffries 
July 2012 Biggart Baillie 
Feb 2013 Fishburns and Cobbetts 

DWF – revenue and PEP
Year Revenue PEP
2011-12 / £102m / £412,000
2010-11 / £83m / £388,000
2009-10 / £71m /  £338,000
2008-09 / £61m / £230,000
2007-08 / £54m / £340,000
2006-07 / £39.3m / £370,000