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The model was always flawed: mass market work means lower costs base and technically limited fee earners to make a profit.

What is surprising from the announcement this morning is they are going to continue this approach but from less places. The LSA 2007 was going to create the opportunity for a small group of firms to punch through and thrive (dominate? I personally doubt but others think may happen) but the risks were always enormous. The majority of firms who try to punch through will not achieve their aims - simply because it's so difficult to do and requires a huge cash injection which is against the partnership or shareholder model (drawings or dividends anyone?).

Purchasing other firms or CMC's just adds to the problems. Growth organically means quality and consistency - growth by acquisition contains more risks.

In fairness to S&G some of their less high profile deals had real quality within them but a handful of quality people and practice areas in a volume practice will not buck the trend.

Lessons for others:

1. Focus on the cost base;
2. Be either low cost mass market or quality - the two are mutually exclusive.

My thoughts are with the staff who will inevitably be the people who suffer for others poor decisions in an effort to be the first or the biggest and whose futures are now in question due to the difficult decisions ahead.