Cobbetts predicts more firms will aim for market flotation

Law firm Cobbetts, which has around 150 staff in Leeds, is seeking new markets for legal services, in countries such as Russia, Mongolia and Kazakhstan.

International work accounted for around 65 per cent of the law firm’s Leeds-based corporate team’s turnover last year.

Capital markets work within the team is expected to increase by 15 to 20 per cent this year.

However, Guy Jackson, a senior partner in the corporate team and partner in charge of the Leeds office, warned that there was “still a degree of volatility” in the market place.

He added: “The Yorkshire market hasn’t been the best, although there is definitely a greater sense of optimism. There’s certainly more happening in Yorkshire but it is still slow.

“Private equity is more active, but the outlook for 2012 is still problematic. The key things are the economic environment, confidence and the availability of finance.

“While the capital markets have been pretty volatile and fund raising has been challenging, Cobbetts has been one of the most active law firms in the AIM market outside London.

“For us, it’s about increasing market share. There are potentially a queue of businesses thinking more optimistically about an IPO (initial public offering). At the back end of the year, we may see more businesses coming to AIM.

“But these decisions could be reversed on the back of more bad news.”

In a sign that the mergers and acquisitions market is coming back to life, the Leeds office of Cobbetts has provided advice on a conditional £3.4m cash acquisition of a Gloucestershire-based medical devices business.

Ambu, a Danish-headquartered medical products supplier of electrodes, is set to buy the electrode business of Unomedical, which is owned by US-based ConvaTec. The deal must be approved by the competition authorities.

Mr Jackson said: “Of course, it’s tough conditions at the moment, but we are seeing increased activity domestically.

“It’s interesting to note that the FTSE 100 is higher at the moment than it was before Lehman Brothers collapsed.”

Cobbetts is seeking new markets for legal services, with some of this coming off the back of litigation work involving companies from Russia.

Mr Jackson added: “Quite often, the choice of law is English law and English arbitration.

“More international companies are looking to list in the UK. We are also doing work in Mongolia and Kazakhstan related to the natural resources sector.

“We have an office in Cairo, and are seeing increased opportunities to work in Oman and Qatar where we have a licence to trade.

“Despite, the instability in the Middle East, there is increased appetite to invest in the UK.”

In January, Cobbetts and DWF revealed they had ended merger talks because of uncertain market conditions.

In a statement, Cobbetts and DWF said “growth by merger and lateral hires continues to be an option for both firms”.