Lupton Fawcett and Lee & Priestley in merger talks

In a joint statement, the firms said they wanted to confirm the existence of talks rather than allow “ill-informed” rumours to develop in the market place.

The timing of the announcement suggests that due diligence has started, but it is by no means certain that the process will lead to a merger.

Neither of the firms would comment beyond the statement.

Richard Marshall, managing director of Lupton Fawcett, said: “We have known the Lee & Priestley team for many years now and they have built a tremendous and high quality law firm serving the vibrant Yorkshire market.

“Combining our two businesses in Leeds will create a tremendous platform to jointly serve that market.”

His firm has around 210 staff, including 100 fee-earners, following a series of deals in recent years. Lee & Priestley, which has been operating in the legal market for a century, has around 60 staff.

James Richardson, managing partner, said: “The prospect of a merger with Lupton Fawcett presents our niche practice with a very exciting opportunity and would provide a strong platform from which to serve our clients with a wide range of services whilst also helping us to grow and fully exploit the opportunities arising from a rapidly changing legal market.

“We are also excited at the prospect of working with Lupton Fawcett to develop a wider regional and national offering in our specialist sectors.”

The joint statement said both firms are dedicated to the region’s mid-market; they provide wealth creation services to private and public limited companies in Yorkshire and offer wealth preservation services to the proprietors of those businesses.

Lupton Fawcett has offices in both Leeds and Sheffield. In 2009, it acquired the commercial and private client business of Leeds firm Fox Hayes and then it bought Hackett Windle, a niche firm of solicitors and chartered tax advisers based in Sheffield.

Lee & Priestley can trace its roots back to the early years of the last century and the Bradford practice of James A Lee.

The legal sector is bracing itself for accelerated change following the introduction of the Legal Services Act, which allows non-lawyers to invest in law firms for the first time. This is expected to usher in a wave of consolidation in the highly fragmented sector.

Yorkshire’s largest law firm Irwin Mitchell is leading the way after winning approval from regulators to attract external funding.