While the firm achieved higher quartile profits, its dominant Senior Partner was approaching retirement age with no clear succession plan. Pegasus also identified that despite profitability levels, most work came from a slowly reducing source of existing clients, therefore placing existing profit levels under pressure. We also saw that a lack of clear strategic direction and slow decision-making processes were inhibiting growth.
An amalgamation of two local law firms with different ambitions: one looking for continuance and survival, the other looking to grow. The merger created a team of 5 partners and around 40 staff, working from 3 offices: one profitable, one loss making and the other stagnant. Overall, the firm was undercapitalised, had high levels of lock up, low profitability and under-performing staff.