Law firm mergers are always sold to the partners of the participating firms on the basis of the new revenues that will be created through client synergies. Unfortunately, most firms spend so much time planning the marketing of the merged firm to potential clients that they put at risk their existing client bases. When advising [...]
As consolidation reduces the universe of available merger partners, waiting for the perfect candidate may take a long time. There are times when a “fixer upper” – a firm without direction or that has profitability problems – may represent an appropriate opportunity for a growth oriented firm that has its act together. I fear that [...]
Customarily, law firm leaders approach merger discussions with the same detached objectivity that they bring to clients’ transactions. But when it comes to convincing their partners of the value of something that represents massive change to their everyday work style, it can’t just be about numbers and synergies. There has to be some romance. Picture [...]
Much has been written about 2011 being a banner year for mergers including articles in the Wall Street Journal and the American Lawyer. It is true that there were somewhere around 60 mergers involving U.S. firms last year and that represents a 54 percent increase from 2010. But this may be much ado about relatively [...]
When a law firm leader is asked why his or her firm is considering a merger with a particular firm, the most common answer you hear is, “They’re just like us.” It’s probably human nature to seek out kindred spirits, and certainly dealing with people who share your values and have a similar history is [...]
The term “acquisition” is used quite often to describe the manner in which law firms bring in experienced lawyers. Sometimes firms describe the hiring of lateral partners as an acquisition and bringing in groups of lawyers or a whole practice group from another law firm is viewed as an acquisition. When the consolidation of two [...]
We are seeing a significant roll up among smaller and mid-sized law firms in the U.S. Evidence of the consolidation of law firms can be seen in Of Counsel magazine’s annual survey of the 700 largest U.S. law firms. In 1994 the 700th firm had 51 lawyers; in 2006 the 700th firm had 20 lawyers. [...]
I was speaking with the managing partner of an AmLaw 200 firm a couple of weeks ago. He casually mentioned that, year in and year out, he spends about 25 percent of his time involved in merger discussions. I thought he was kidding but he assured me he was completely serious and had the non-billable [...]
Most law firms want to grow. Whether to gain depth of capability or achieve the credibility among clients that comes with critical mass, growth in the number of attorneys is a strategic priority for the majority of law firms in the U.S. Of course, firms have several growth options. They can grow organically by hiring [...]
The recession provides an excellent opportunity for law firms to achieve strategic objectives through a series of small mergers that are effectively acquisitions. Increasingly, smaller firms with less than 50 lawyers see “being acquired” as the best means of surviving the economic downturn. For larger firms, picking up lawyers in small groups enhances the likelihood [...]
A friend of mine always dreamed of owning a restaurant. When a particularly popular bistro came on the market, he quickly bought it and went about “improving” the menu, “fixing” the service and “rejuvenating” the atmosphere. Within six months, my friend had succeeded in driving a previously successful restaurant out of business. We both learned [...]
Law firms stumble among potential merger partners with little but gut feel to guide their decision. A simple evaluation process permits law firm leaders to look at a merger from a variety of perspectives. The result is a judgment based on what the combined firm brings to the market rather than a comparison of two [...]
The 1990s could well be called the “golden age of mergers.” In many industries, businesses merged in record numbers. Nowhere was “merger mania” more noticeable than in the financial and service sectors. Banks, insurance companies, brokerage houses, accounting firms, consultants, hospitals and even medical practices merged and then remerged during a period of unprecedented economic [...]
At a recent law firm retreat, one of the partners asked me, “Is it true that most law firm mergers fail because they don’t make strategic sense?” My immediate reaction was to agree. Indeed, the strategic value of a lot of mergers is backfilled after the deal is done to justify it to clients and [...]
There is general agreement that law firm mergers will continue on the upsurge. So what? This means that it is likely that at least one potential merger partner will come knocking at your door and, while you are talking to them, another firm will be stealing your crown jewels. Yes, there are some things you [...]
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