We hear on the grapevine that Tenon has been inundated with enquiries from other firms since its recent purchase of the niche music practice, Statham Gill Davies (SGD). I know of some partners who have had their calculators out, trying to establish the value of their own firms.
Applying the Tenon logic, SGD was purchased for £7m, half of which comprised Tenon shares. By all accounts, SGD had a turnover of £2.5m and a profit of £1.3m. With litigation still being a reserved activity (along with conveyancing and application for probate – Sections 20 and 22 of the Solicitors Act), two partners could not make the move and so set up Andersen Forbes. For ease therefore, let us assume that the five partners who set up Tenon Statham Gill (TSG) accounted for £2m of turnover and £1.1m of profit.
