Regional impact of global credit crunch

http://www.thelegalweek.merseyblogs.co.uk/2008/04/regional_impact_of_global_cred.ht
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Posted by icky !nderson on !pril "#$ 2008 %:4# !& ' Permalink
&!(!)*() partners throughout &erseyside say that the global credit crunch is
impacting on the financial performance of the region+s law firms , but remain upbeat
about the rest of the year.
*n a sur-ey conducted for &anagement Partners &erseyside by ./change 0hambers$
1#2 of those 3uestioned said that the credit crunch was ha-ing a negati-e impact on
financial performance.
4onathan 5rown$ head of 6alliwells+ 7i-erpool office said: 89ur corporate deal flow has
actually increased o-er the last few months with companies wanting to complete deals
before the !pril 0apital )ains :a/ deadline$ but with the banks now adopting a more
cautious approach deal acti-ity is sure to decline. 6owe-er$ in a downturn$ other practice
areas such as corporate reco-ery$ litigation and employment become busier so it+s not all
bad news.;
Patrick )aul$ managing partner at <eightmans$ said: 8:he credit crunch is bound to ha-e
an impact. =aising the money to run any business will become more e/pensi-e and many
law firms are now -ery big businesses. :here will be less confidence within the business
community. .-erybody will tighten their belts. >irms who are hea-ily reliant on certain
areas of business$ for e/ample residential con-eyancing and corporate mergers$ will ha-e
to adapt. *f they don+t$ the impact will be se-ere.;
6e added: 8=ecession$ if that is what we are about to ha-e as a result of the crunch$ may
ha-e a positi-e impact for some legal businesses and those with strong litigation or
restructuring capabilities will prosper. ?ou hear tales of some firms being 3uiet in some
areas but no@one seems to be panicking. :he problem is that most law firms are geared to
be busy pretty well all the time and you cannot stay 3uiet for long.;
Aingsley 6ayes$ legal director at Bil-erbeck =ymer$ belie-es the credit crunch could
actually boost business for some firms. 6e said: 8:he personal inCury sector has tended to
see an increase in business in times of recession.;
)arry !brams$ managing partner at .!D says residential con-eyancing work has
dropped off but remains optimistic. 6e said: EPersonal inCury work is largely recession@
proof but the residential con-eyancing market has really slowed down. >irms specialising
in a broad spread of work will not be massi-ely concerned but firms too hea-ily
dependent on$ for e/ample$ big pri-ate e3uity deals or stock market flotations will
certainly be feeling the pinch.E
Peter 4ackson$ managing partner at 6ill Dickinson belie-es firms focusing on litigation
can e/pect a busy period. 6e said: 8! large part of our business is litigation based and$ of
course$ litigation booms in any downturn or recession. .mployment is also booming. 9ur
corporate teams are more niche and do not play at the le-el of some who will be
affected.;