Private equity investors are in talks to buy the biggest law firm on the stock market, it emerged today.

DWF responded to media speculation by issuing a statement confirming that talks are ongoing with Inflexion Private Equity Partners LLP.

Under the terms of the proposal, DWF shareholders would be entitled to receive 100p per share in return for the entire issued capital of the company. This would include a cash payment of 97p per share and a dividend of 3p per share to be paid six months after the deal is concluded.

DWF office

DWF was the largest legal practice to float in this country when it went public in 2019. The move raised around £95m through the sale of 61.5m new shares.

Share were set at 122p per share when trading began, valuing the company at £366m. But following a series of financial problems and management changes, the share price plunged as low as 48p as recently as last month. Following today’s announcement, made in agreement with Inflexion, shares bounced 34% to 87.8p.

DWF stressed that any firm offer remains subject to a number of pre-conditions, including completion of satisfactory due diligence, receipt of irrevocable undertakings to vote in favour of the transaction and agreement of the detailed terms of the proposal.

The company has confirmed to Inflexion that should a firm offer be made on the financial terms of the proposal, it would be minded to unanimously recommend it to shareholders, subject to the agreement of other terms and conditions.

Inflexion has until 5 August to announce a firm intention to make an offer, although this deadline can be extended.

The London-based investor was founded in 1999 and provides capital from £10m-£400m for a minority or majority stake in businesses across all sectors. It is no stranger to the legal sector: Inflexion led the buyout of legal rankings outfit Chambers and Partners in 2018 and bought into conveyancing firm O’Neill Patient in 2019. It previously invested in National Accident Helpline.

 

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