Australian Law Firms to List on the Stock Exchange
One of the arguments that has been held against law firms listing on stock exchanges, as will shortly be possible in the United Kingdom under the new system allowing for external, non-lawyer ownership of organizations dispensing legal services, is that it has been possible for law firms in Australia to do this for some time but none have.
Therefore, it followed, it must be a bad idea.
Well, three Australian law firms are taking the plunge with the launch of the Integrated Legal Holdings (ILH) A$14m (£5.5m / US$10.5m) initial public offering. Real the Legal Week article here.
Can you imagine having a large 'war chest' for funding strategy-driving investments like stealing practice groups or top laterals from competitors, funding aggressive business expansion or investing far more heavily in IT than otherwise possible?
BUT .... can you simultaneously imagine law firm partners having to answer to external shareholders and the organization having to generate superior enough returns to provide competitive salaries for the senior lawyers (at least what they would earn as partners in 'conventional' firms) PLUS enough surplus cash to provide a decent return on investment for external shareholders too?
It's a big, but not impossible "ask."
No doubt there are many British (and other) law firm managing partners that will be 'watching this space' with a great deal of interest. I certainly will!