Report Sees Busy Quarter for Law Firm Mergers, Driven by Smaller Deals
Fairfax Associates said the number of closed mergers surpassed the first quarter last year, but the state of the merger pipeline is harder to gauge.
March 29, 2019 at 05:41 PM
4 minute read
More law firm mergers than usual closed in the first three months of 2019, according to the consultant Fairfax Associates, helped along mostly by consolidation among smaller firms across the country.
Fairfax tallied 24 finalized mergers during the first quarter, including three cross-borders tie-ups and 21 U.S. firms joining forces. That figure is higher than the 21 it recorded in the first quarter of 2018 and above the average of 20 mergers in the same period over the past decade, Fairfax said.
While the national economy has faced concerns over when the post-recessionary growth will come to a halt, Kristin Stark, a Fairfax principal, said smaller firms tend not to think about the next downturn so much as about their ability to compete with national and international competitors. An acquisition can also be a way to move into a high-cost market with less risk, she said.
“They're under competitive pressure,” she said. “They think growth is their way to try to counteract that competitive pressure.”
Fairfax's findings contrast somewhat with data collected so far this year by Altman Weil, which tracks law firm mergers as they are announced rather than when they close. Altman has logged 27 reported deals so far this quarter, compared to 31 in the first three months of last year—and the average size of the acquired firms in the company's 2019 tally is far smaller than in Q1 last year.
Stark said she saw no signs of an imminent downturn in legal M&A, however.
The biggest mergers that Fairfax tallied over the past three months include Alabama-based Burr & Forman's tie-up with McNair Law Firm, a firm in the Carolinas that had a reported 84 attorneys, and Arent Fox's sealed deal with Boston-based Posternak Blankstein & Lund, which had 55 lawyers. California, New York and Illinois were each home to three firms that joined larger firms, the consultancy reported.
The Chicago headquarters of Butler Rubin Saltarelli & Boyd became the eighth office for the Columbus-based firm of Porter Wright Morris & Arthur earlier this year. Robert Tannous, Porter Wright's managing partner, said the merger was part of the firm's strategy to grow across the Midwest and comes on the heels of an expansion to Pittsburgh that grew lawyer-by-lawyer.
In Pittsburgh, Tannous said, Porter Wright has jumped from office to office as it has expanded. In Chicago, by contrast, everyone has managed to stay put; the only issues to speak of with the merger have been technology-related, he said, with the standard transition from one filing system to another still ongoing.
“Because of the cost of doing business in Chicago, in terms of when you're looking at rent … I think it would be very difficult to do that on a one-by-one basis unless you're confident you could do that fairly quickly to grow out the space.”
Two of the New York firms that were acquired called New York City home, with Mayerson Abramowitz & Kahn linking up with Schwartz Sladkus Reich Greenberg Atlas and the 10 or so lawyers at Salon Marrow Dyckman Newman & Broudy becoming the latest lawyers in the area to join Baltimore-based Offit Kurman, Attorneys at Law, Fairfax reported.
Moritt Hock & Hamroff of Long Island also joined forces with another small firm, adding seven lawyers from Karol & Sosnik to its team, the report said.
The biggest international cross-border merger announced this quarter has been the addition of 33 lawyers at Straits Law Practice in Singapore to K&L Gates, according to Fairfax.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllMore Big Law Firms Rush to Match Associate Bonuses, While Some Offer Potential for Even More
Holland & Knight, Akin, Crowell, Barnes and Day Pitney Add to DC Practices
3 minute readTrending Stories
- 1'It Refreshes Me': King & Spalding Privacy Leader Doubles as Equestrian Champ
- 2Class Action Filed Against Houston Health Savings Account Firm for Allegedly Confiscating Client Funds
- 3These 2 Lawyers Just Became Florida Judges
- 4'Disease-Causing Bacteria': Colgate and Tom’s of Maine Face Toothpaste Class Action
- 5Trump's SEC Overhaul: What It Means for Big Law Capital Markets, Crypto Work
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250