Pagan Osborne sets sights on accountants ahead of law change

LAW firm Pagan Osborne has signalled its desire to buy an accountancy practice in one of the clearest indications yet that lawyers are gearing up for a relaxation on ownership rules.

The 250-year-old firm has confirmed it is on the acquisition trail as it aims to double turnover to 16 million and expand its geographic reach.

A Bill passing through the Scottish Parliament would allow non-lawyers to own law firms, opening the door to further merges and acquisitions.

The legislation will lead to alternative business structures (ABS) – branded "Tesco law" south of the Border as it opened the door for other companies to offer legal services – in which professionals such as accountants and lawyers may come together under the one roof.

Alistair Morris, Pagan Osborne's chief executive, told Scotland on Sunday that his firm would consider takeovers or mergers with individual lawyers, solicitors with small teams or entire firms in the east of Scotland and in Inverness and Aberdeen. He said an agent had been appointed to initiate discussions and that the early response had been "positive".

His comments come a year after the firm took over Edinburgh-based Robson McLean.

Morris said: "Under the current regulations, we're looking to broaden the range of private client services that we already offer.

"Because of the state of the industry, a lot of firms are still trying to work out whether they want to be full-service firms offering a range of services or specialists firms.

"As a result, some private client teams aren't core to the direction their firms wants to take but they would be core to us."

He added: "Under alternative business structures, we'd still focus on private clients but we'd be keen to bring more services in-house, for example accountancy, but that's a couple of years away."