The collapse of Parabis last year shook the legal market. But what exactly was the cause?
Parabis the insurance giant was ultimately built on the bones of an array of mergers and acquisitions beginning in 2001. It then accepted a massive cash injection in 2012, which appears to mark the beginning of the end for Parabis.
So what happened?
Could a variety of external and internal factors (such as regulatory change and misuse of investment funds) have aggravated an already wobbly structure?
Ultimately, a firm must be able to integrate it's business acquisitions successfully in order to avoid high maintenance costs, inefficiencies, loss of talent and thus disaster.
Parabis made history in 2012 when it became the first major UK law firm to receive private equity backing after landing a £50m boost from Duke Street. But within a period of three years Parabis Group’s turnover fell from what may have been as much as £200m to £143m. By October 2014 the insolvency experts had been called in.