Since it emerged earlier this year that Olswang was on an active hunt for a merger partner, the firm has been linked – inaccurately in most instances – with numerous firms, including Simmons & Simmons, Osborne Clarke and Bird & Bird.
Working in favour of the firm's current discussions with larger rival CMS Cameron McKenna though, is the fact that the talks mark the second time in only two years that the pair have met to discuss a potential tie-up.
According to one former Olswang partner, the firm – which has struggled to internationalise and has seen a string of partner exits in recent months – first approached CMS in 2014 when it was under former CEO David Stewart.
The partner says: "At the time, the Berlin partners were not amused at the thought, given the setup of CMS in Germany and the setup of CMS as a whole, which is rather a non-integrated, more verein-type of structure."
With the Berlin office quitting for US firm Greenberg Traurig in the summer of 2015, opinion within Olswang seems to have shifted.
The Berlin partners were not amused at the thought, given the setup of CMS in Germany and the setup of CMS as a whole
For Olswang, the benefits of a merger of some description have been clear for some time. The firm is at a crossroads following a period of rapid international expansion attempts that have not always paid off, with many inside the firm annoyed by the cost of these efforts.
CMS UK and the wider CMS network would give Olswang instant access to an extensive European network as well as a presence in Asia, Latin America and the Middle East.
The CMS Cameron McKenna UK business has offices in locations including China, central and eastern Europe and Dubai, as well as Brazil and, of course, Scotland, through the UK firm's merger with Dundas & Wilson in 2014.
The wider CMS network also counts offices including Spain, the Netherlands and Germany.
As one former partner says of the latest talks: "It has to find a new strategy and that strategy being a merger is almost inevitable. I can't see what else they would do – it's difficult to be a mid-size firm and build a full legal platform on your own. This feels like it's not a complete surprise for me."
Another adds: "Olswang needs to be an international law firm and there is a strong mentality for that within the partnership. Having an international network through CMS would be good."
In contrast to other names the firm has been linked with, former partners suggest CMS and Olswang have a number of complementary practice areas.
A partner at one firm previously linked with Olswang merger talks says: "CMS has strong IT and technology capabilities, while Olswang has always had a strong media practice. I can see those marrying up, as the division between technology and media has pretty much disappeared. If CMS is looking to build capability in content area it would make sense."
Others flag Olswang's IP practice as a particular draw for CMS's UK arm. The firm's IP practice is rated in band two in Chambers and Partners, compared with CMS's current band four rating.
Another partner adds: "In the energy regulatory world, CMS is probably the best in London market. It doesn't have a very high profile but it's full of decent people. It does have a very good eastern European business too."
It's not the first I'd have thought of but there are a couple of strands there and Olswang does need to merge
Others though, suggest the pairing is not the most logical combination. "Olswang needs a merger partner and it probably makes sense though it's not an obvious choice," says one recent departee.
A partner at a rival firm suggests: "It's not the first I'd have thought of but there are a couple of strands there and Olswang does need to merge."
If a merger was successful, Olswang would receive a significant boost to its finances. Though the firm is yet to announce its results for 2015-16, last year its profit per equity partner (PEP) stood at £490,000 while last month CMS announced its had topped £786,000. Last year, Olswang's revenue reached £126.5m, while CMS posted a static figure of £219.5m.
With so many names linked to Olswang in recent months though, it's unclear whether CMS is the firm's happy ever after. As one partner notes: "People I know who have got married to the last person standing have never had very successful marriages."
Both Olswang and CMS declined to comment.
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