MBO of North West Law Firm a first for Liverpool professionals

23th March 2007

North West law-firm Forster Dean has undergone a Management Buyout (MBO) in a deal that is believed to be the first ‘pure’ MBO of a law firm in the North West. A seven strong team led by Managing Partner Gregory Shields will take control of the £6m fee income firm from its founding principal Peter Forster Dean.

The deal was funded with a loan from Merseyside Special Investment Fund’s £20m Mezzanine Fund and support from The Royal Bank of Scotland. The Steve Stuart Partnership provided corporate finance advice.

Law firms have traditionally evolved via organic growth and/or merger and it is not been easy for partners to fully realise the value they have created. However the introduction of the Limited Liability Partnership (LLP) structure and the forthcoming reforms to the ownership of firms, should mean that MBOs, acquisitions and external fundraising become more and more prevalent in the sector. The Trailblazers at MSIF, TSSP and RBS are ready to apply the experience gained with Forster Dean LLP for the benefit of more law firms in the North West.

The highly successful practice now becomes Forster Dean LLP and a new website will be launched to coincide with the MBO. Established in 1992, the firm specialises in personal injury and residential conveyancing and has 13 offices across the North West, including Liverpool, Runcorn, Widnes, St Helens, Warrington, Crewe, Leigh, Eccles and Chorley.

Managing Partner of Forster Dean, Gregory Shields said: “We are delighted to have completed the purchase of the firm. This deal provides us with the platform to build upon the success we have already achieved. I would like to thank Peter for this opportunity and wish him all the best for the future.”

Malcolm Jones, Investment Director, MSIF, Liverpool, said: “We are pleased to have had the opportunity to support this young and dynamic management team. I am sure the firm will continue to be a great success under their ownership.”

Steve Stuart of TSSP said: “This deal is the culmination of nearly 9 months of work with Gregory and the team. There have been many twists and turns along the way as we entered into uncharted territory for North West funders. I am delighted that we were able to secure a solid funding package for the partners and I am sure they will go from strength to strength under their new leadership.”

Bill Doherty, Director Commercial Banking RBS Liverpool, said: “We are pleased to have helped Greg and the management team take control of Forster Dean. They have substantial experience and knowledge of their market and we look forward to working with them and assisting with any future growth plans.”

Mark O’Connor and John Spofforth of O’Connors LLP provided legal advice to the MBO team.

For further information contact Angela White at Merseyside Special Investment Fund on 0151 236 4040 or Angela.White@msif.co.uk

Ends

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Pic shows L-R Steve Stuart (TSSP) Malcolm Jones (MSIF) Gregory Shields (Forster Dean) Bill Doherty (RBS)

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