With the economic downturn, certain firms have recently reported stagnant or falling turnover, while also reporting increased profit per equity partner. Clearly then, some organisations are reducing the number of equity partners, either through partners moving away or being ‘de-equitised’.
The recent split of DJ Freeman, with some elements of its partnership joining Olswang and the remainder forming Kendall Freeman, made the headlines. One of the reported explanations behind this split was the relative profitability of the different elements. While only time will tell if the demerger produces material benefits to one or other party, other firms are also likely to consider this route.
