DAC Beachcroft (London)

Our view:

Beachcroft had been desperately trying to reinvent itself – it dropped the “Wansbroughs” from its name and moved into flashy new offices in Bristol (“rather like working in an iPod”, grumbled one assistant). And on 1 November 2011, merged with fellow middle-ranking insurance firm Davis Arnold Cooper to become DAC Beachcroft (sadly not ABCD as RollOnFriday had hoped). But it seems there's still a long way to go before it can catch up with its rivals.

The surprisingly big Beachcroft – pre-merger it had over 140 partners, seven UK offices and branches in Dublin, Brussels and New Zealand –  hasn't turned in a stellar performance over the last few years. Turnover in 2008/9 increased from £114 to £121million, but profits per equity partner actually fell from £310,000 to £301,000. 2009/10 was a better year - turnover grew by 8.2% to £131m and PEP increased to £314,000. 

And whilst recent years have seen a growth in turnover, it rose 22% to £163.5m in 2011/12, this was partly down to the merger. And the merger came at a cost, namely the firm's debt which has increased form £10m in 2010/11 to £34m in 2011/12. A hefty hike.

The firm’s associates have been panning the firm for poor pay and uncompetitive salaries for years. "Salaries are going down rather than up", "no pay rise for three years and not a cat in hell's chance of a bonus", "the management are always looking to save money at the expense of the staff" are all cries from assistants. Whilst support staff complain that  "salaries haven't increased for most staff since 2008" while "partners are getting richer." As one lawyer put it, “if only top brass would accept that rate of pay is the sole reason why staff turnover at junior fee earner level is so high and do something about it.”

Communication could perhaps be better at the firm, with associated complaining of "mass lay-offs done on the sly" which have "devastated morale".

But it's not all grim. Plenty of lawyers write in to praise the firm’s work/life balance, chummy atmosphere ("no pompous arses") and good social life (including events such as "ferret racing"). “Money grabbing psychopathic assistants and unconcerned slave driving partners tend not to be attracted to Beachcroft, which helps keep the firm (almost) full of friendly people who are good at what they do but don’t see work as the primary reason for breathing.”

And the firm’s made some strides in broadening its practice too. Historically known largely for its insurance litigation expertise, it now gives commercial legal and litigation advice to a number of industries including financial institutions, the health and public sector (which has seen a particular investment over the last year), real estate, technology and industrial and consumer goods and services. And with the merger has come a much stronger focus on interntional expansion.

So what now of the firm now it has taken the plunge with DAC? Well the first joint announcement issued by DAC Beachcroft was to say that trainee recruitment was cancelled indefinitely. Not wholly positive but hardly surprising given that pre-merger both firms took on 75% fewer trainees in their 2013 round.

The next few years look as if it will be a time of consolidation for the firm, which will be hoping that cost savings (including ditching under-performers) will lead to a slicker outfit able to compete more effectively with rivals.

If you're after decent hours (by City standards) and a friendly environment this firm is not a bad bet. Just don't expect to be paid well for it.