An interesting alternative opinion upon the recent Slater + Gordon problems.
A lot of 'told you so' and schadenfreude comments accompanied the numerous articles about the firm's demise, many seemed to blame the ABS structure for their downfall. ABS however is not what caused extremely poor decisions to be made and unfortunately put many people's futures in doubt.
It is somewhat appropriate that Slater & Gordon (S&G) sponsors England cricket captain Alastair Cook, no stranger himself to sudden collapses. Yesterday's results could not really have been much worse, for owners, investors and staff alike, with those in the UK now bracing themselves for redundancies. Schadenfreude abounded on social media and some websites, but the real shame is that, until last year, S&G was a significant success story. The first listed law firm in the world, it had used its access to capital to grow phenomenally in Australia before coming over here and doing the same. After laying down its base with Russell Jones & Walker, it bought good, solid firms like Fentons. Revenues were up, profits were up, and the poster child of external investment polished its halo.