The deal is being described as a merger because no money is changing hands, with six Poole Stokes Wood equity partners becoming Davis Langdon & Everest equity partners from 1 May.
But the Poole Stokes Wood name will gradually disappear as its 80 staff – including 60 professional – are absorbed into 2000-strong DL&E. Poole Stokes Wood earns £3.5m a year in fees.
DL&E senior partner Paul Morrell said his firm preferred not to spend money when taking over other companies. He said: “I’ve never understood why people pay money for income stream to those who will be earning it.” The attraction of the deal to DL&E is that it will boost its expertise in sports stadia and housing. Stadia can be marketed abroad, and housing provides a counterbalance to the business cycle in the commercial sector.
Poole Stokes Wood is currently advising on Manchester’s £90m Commonwealth Games stadium, and its 20-strong Birmingham office has worked on projects for the city’s two top football clubs, Birmingham City and Aston Villa.
The firm also has a strong track record in housing, both for housing associations and private developers.
Morrell said: “Housing used to be a huge market for us, but it slipped a bit. With 4 million homes needed, strength in housing could help us through the ups and downs of the commercial cycle.” The firms’ Manchester offices are to be combined and Poole Stokes Wood senior partner-elect Paul Stanion is to become joint managing partner of the North-west business with Stephen Frood. He will also join the DL&E management board.
DL&E plans to expand its Midlands presence from Poole Stokes Wood’s Birmingham office, but Poole Stokes Wood’s London office will be merged with DL&E’s.
The merger means further growth for DL&E, which announced alliances with South African and US cost consultants last year.
