First law firm to float on stock market

EVERYMAN Legal will next week become the first British law firm to announce it will float on the stock market in a radical departure allowed under the so-called “Tesco law” reforms.

The firm, which was setup by City lawyer James Hunt in 2007, is expected to join Sharemark – a smaller-companies market that is a member of the London Stock Exchange and is run by the Share Centre – during the final quarter of 2012.

Everyman’s IPO follows the 2004 review of the legal sector by former Bank of England deputy governor Sir David Clementi, which recommended the ownership of law firms should be opened up to include non-lawyers.

Hunt said: “I recognise this may seem to some to be a very bold move, but we share the entrepreneurial spirit of our clients and plan to be at the vanguard of the revolution taking place in the legal sector.

“We’re under no illusions that, if you don’t put in place the right long-term plans, you will not create the structure for rapid, sustainable growth.”

Other companies listed on Sharemark include Broker Direct, Countrywide Farmers and Radio Taxis Group.

Legislation in Scotland will also open up the legal market to a broader range of ownership.

Although no law firms north of the Border has so far signalled an intention to float, several practices are expected to allow other professionals – such as financial advisers – to become shareholders, with Edinburgh-based Pagan Osborne already moving in that direction.