'Our whole strategy is to pursue acquisitions' – Knights plots three law firm takeovers after IPO
CEO David Beech on going public, disrupting the market and the firm's plans to take on hundreds of new lawyers
June 12, 2018 at 09:09 AM
3 minute read
Knights is planning to make three law firm acquisitions in the next two years after its listing on the AIM market, as the firm looks to ramp up its expansion plans after seeing revenues rise to £35m for 2017-18.
The firm is set to concentrate on national expansion, driven by funds raised from its planned initial public offering (IPO) later this month, which are expected to exceed £100m. Knights will also use the proceeds from the IPO to pay down the majority of its debt, with the remaining warchest used for law firm acquisitions.
CEO David Beech (pictured) told Legal Week: "Our whole strategy is to pursue acquisitions. We hope to do another three within the next 18 months to two years. We want to focus on the large provincial cities where none of the big firms have a presence and where we can become the number one player."
The firm is wholly focused on UK growth, with no plans to expand internationally, and it wants to hire at least 200 additional fee earners and increase its office count to at least nine by 2020. It is also targeting non-lawyer growth, with Beech particularly hoping to grow its tax and town-planning team with accountants and surveyors.
Knights is already based in Cheltenham, Chester, Newcastle-under-Lyme, Derby, Oxford and Wilmslow, and according to Beech, "anything outside of London is up for grabs". The firm's recently announced acquisition of Manchester's Turner Parkinson, which will hand it a seventh office, 45 fee earners and roughly £8.5m of revenue, will take place once Knights is admitted to AIM.
Immediately after the IPO, all of Knights' 430 staff will be able to buy shares in the business. From the autumn, the firm will introduce a 'save as you earn' scheme, allowing employees to buy shares at a fixed point in the future at an agreed price.
Beech takes a robustly dismissive view of the traditional partnership model, which he argues "creates massive conflict between lawyers' roles as owners and managers". Knights converted to an alternative business structure in 2012, and Beech says the IPO is a continuation of this non-traditionalist approach.
He added: "We had always thought a float might be the answer to pursue our vision to disrupt the market. To do that listing is important – it gives us the profile and verification that we needed."
Knights, which was one of the first UK law firms to secure external investment from a private equity house when it took on investment from ex-Dragon's Den entrepreneur James Caan's investment vehicle Hamilton Bradshaw in 2012, took in revenue of £34.9m during the 2017-18 financial year, with adjusted operating profit of £6.8m. Its top clients include Aldi, Paddy Power and Rolls-Royce.
The firm is the latest to join those making the move to list. It joins Gateley, which became the first UK practice to list on AIM in 2015, Gordon Dadds, Keystone Law and Rosenblatt in the decision.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllDavis Polk, Simpson Thacher and Japan's Big Four Among Firms Engaged In Japanese Chipmaker’s $4.8B IPO
Can Labour's New Budget Steady the Ship? Big Moves On UK Tax Reform and Fiscal Stability
5 minute readCracking Canada: How International Law Firms Penetrate the Country's Legal Market
6 minute readHong Kong IPO Market Shows Signs of Slow but Steady Recovery
Trending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250