Allen & Overy’s pre-merger report shows significant revenue growth
updated on 20 July 2024
Reading time: one minute
Magic circle firm Allen & Overy has reported increased revenue and pre-tax profits in the financial year ending in April, ahead of its $3.5 billion merger with US firm Shearman & Sterling in May.
The firm’s revenue rose by 3.4% to £2.2 billion, while its pre-tax profits grew by 17% to £1 billion. This boost in earnings saw the salaries of its 600 equity partners increase by 18.6%, with top partners taking home an average of £2.2 million in the year prior to the merger. The firm attributed high profits to a rising number of corporate deals and the sale of its legal technology business, aosphere, to private equity firm Inflexion and US investor Endicott Capital.
Magic circle counterpart Linklaters LLP also recently reported impressive financial results, after surpassing £2 billion in revenue. The firm’s equity partners took home an average £1.9 million, with the firm describing the growth of its US practice as the “best ever”, following a 24% increase in revenue in this area.
However, increased pay stretches further than partner salaries, with A&O Shearman and Linklaters among many other firms that have been increasing pay to attract newly qualified solicitors in the ongoing war for talent.
