In this third video in our series focusing on Private Equity investment in professional services firms, Managing Partner Clare Murray and Partners Corinne Staves and Zulon Begum discuss the key considerations in relation to governance that firms should be thinking about when contemplating PE investment for their firm. Watch the video above or listen to the recording here.
In this video, Clare, Corinne and Zulon discuss:
- Current law firm governance structures: What are typical governance models? Smaller firms tend to rely on partner consensus, while larger firms typically delegate authority to management or executive board. Fundamental decisions – such as mergers, capital events and partner admissions/exits – usually remain subject to partner approval.
- The governance changes introduced by PE investment: What specific governance changes might PE investors expect?
- Cultural impact and partner dynamics: Is your firm culturally ready to shift from an owner-manger model to accept investor involvement? What challenges can arise from unanimity clauses, and how can leadership manage the threats sometimes posed by dissenting partners?
- How to prepare for PE investment: What are the key steps for firms to follow before seeking investment, and how can they mitigate governance risks?
- Impact on talent retention and recruitment: Does governance affect a firm’s talent strategy? What attracts talent to a PE-backed firm over others?
- Top tips for law firm leaders considering PE investment: What should leaders assess before proceeding? How can governance changes be aligned with long-term objectives?
Watch the video above or listen to the recording here.
Watch the other videos in the series below:
- The Private Equity Proposition: Strategic Considerations for Law Firm Management
- Remuneration Issues for Firms Considering Private Equity Investment
If you would like to discuss any aspect of private equity investment in relation to your firm, or if you have any questions arising from this recording, please contact Managing Partner Clare Murray, or Partners Corinne Staves or Zulon Begum.
