Could Oz law firm float be way forward for UK firms?
When it comes to accountancy firm ownership structures all bets are off.
That's the nub of the leader column in this week's Accountancy Age, which will be published on Thursday.
With LLP conversions continuing, the likes of Smith & Williamson still mulling a flotation and our revelations last month that the European Union is at least willing to consider allowing audit firms to raise external capital and end the age-old partnership model, the ownership debate is a central one once again.
In a week that marks the sixth anniversary of the awarding of the first LLP certificates (18 were issued on that day back in 2001), it all seemed terribly timely.
However, it seems we only knew the half of it.
Last Saturday partners at legal giant Linklaters rubber-stamped a move to convert to an LLP from 1 May, 2007. But that's as nothing compared to the bombshell news from Australia (covered by our sister title Legal Week) that investor and workers’ rights law firm Slater & Gordon is set to become the first law firm in the world to float on a public market.
In doing so the firm is taking advantage of Australia’s recent legislative changes to raise money and open itself to non-lawyer investors – and making a move that's bound to have massive repercussions for professional services firms around the world.
It's hard to imagine that the current accountancy ownership structures (which basically run to two options for audit firms– partnership or LLP) will prevail. We may not see substantial in the next 12 months but, with liability and competition debates still unresolved, change feels inevitable at some stage.
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