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WHAT WE'RE WATCHING

MORE MERGERS MAYBE? - Happy New Year! Big Law kicked off 2023 by scooping up a ton of smaller boutiques, and merger discussions and interest generally perked up as the year went along. So will the pace continue in 2024? Legal industry observers told Law.com's Andrew Maloney that laterals and promotions will likely be the main way firms try to grow next year. But even assuming a down market—or perhaps because of it—the pace of law firm merger activity may continue next year, particularly among smaller and regional firms. Predicting the pace of law firm consolidation is always a challenge, noted Lisa Smith, a principal at Fairfax Associates, "[b]ut I think we'll see more of the same, which is the continued interest in combinations, but limited by the continued challenge of being able to get them done."

PARTNER POLARITY - Another thing that isn't likely to change this year? The fact that being a top rainmaker at a top firm is a pretty good gig if you can get it. At the highest end of the pay scale for partners at the richest law firms in the world sit a select few taking home $25 million or more in annual salary, an indication of the flexibility some firms have in rewarding high levels of performance, Law.com's Justin Henry reports. By growing the pay ratio among the highest and lowest-paid partners, firms have sought to compete for rainmaking talent while making room for practitioners who don't measure up to higher thresholds for equity partnership, according to law firm consultants and leaders. This tension has been accentuated since 2021, as financial disparities between various practices have become more pronounced.

ON THE RADAR - Powermers Smart Industries Inc., a green-powered technology solutions and product platform company, is going public via SPAC merger with OCA Acquisition Corp. As a result of the merger, Powermers will be listed on the Nasdaq with a post-transaction equity value of approximately $2 billion. Powermers, which is based in New York, is represented by Paul Hastings; Graubard Miller; and PAG Law. The SPAC was advised by Kirkland & Ellis and Han Kun Law Offices. The Kirkland team was led by capital markets partners Christian Nagler and Anthony Zangrillo. Stay up on the latest state and federal litigation, as well as the latest corporate deals, with Law.com Radar.  

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