The potential deal could lead to substantial profits for both current and former partners holding shares in DWF. According to public filings, over three dozen shareholders are poised to reap more than £1m each.

Chief executive Sir Nigel Knowles could acquire £2.7m from the sale, plus an additional £2.25m from from shares subject to performance conditions given under a deferred bonus plan. Matthew Doughty, the chief operating officer, and former CEO Andrew Leaitherland, could each gain £2.7m.

If successful, the deal would remove DWF from the London Stock Exchange, just over four years after it became the UK’s largest listed law firm in 2019. The firm’s share value has since dropped by 40 per cent, despite a £95m increase after its listing. DWF’s shares rose 22p to 87.8p following news of the takeover discussions.

The proposed offer values DWF at 100p per share, including a conditional 3p per share special dividend.

DWF commented: “Discussions between DWF and Inflexion are ongoing and there can be no certainty that an offer will be made, even if the pre-conditions are satisfied or waived.”

Inflexion has until August 7 to make a formal offer.