Now that the proposed trans-Atlantic merger between O'Melveny & Myers and Allen & Overy has officially fizzled, a deal between two Midwestern regional firms could turn out to be the biggest law firm combination announced in 2019.

So far, Friday's news that Cincinnati-based Taft Stettinius & Hollister will merge with Briggs and Morgan—a Minneapolis-based firm with about 135 lawyers—marks the largest law firm acquisition of the year. That's a far cry from 2018, when five much larger deals had already been announced by early summer, according to data collected by ALM and Altman Weil.

By this time last year—which was, in fairness, a record year for mergers—15 law firms had confirmed plans to acquire other firms with 20 or more lawyers. Those included 900-lawyer Bryan Cave joining with the 666 attorneys from Berwin Leighton Paisner, 700-lawyer Hunton & Williams combining with 300-lawyer Andrews Kurth, and Foley & Lardner growing to more than 1,000 lawyers through its merger with 230-attorney Gardere Wynne Sewell.

This year, just seven deals involving acquired firms with 20 or more lawyers have been announced or reported—almost as many as Dentons alone announced last year.

"It's cyclical," said Brad Hildebrandt, founder of Hildebrandt Consulting and a mainstay in the world of law firm merger advising since 1978. "There were so many mergers the last couple of years that we are seeing a slowdown. It isn't related to anything else."

In calling it quits on their own merger talks after 18 months, Magic Circle firm Allen & Overy and LA-based O'Melveny & Myers cited global economic factors as barriers to a deal. Hildebrandt said that while acute situations like a no-deal Brexit, Hong Kong protests and the continuing pain of U.S./China trade battles have ripple effects everywhere, those are felt more by global firms, while most mergers with U.S. firms have been domestic.

Acknowledging he's aware of other merger talks in the works, Hildebrandt said that he doesn't expect any deals that would eclipse the Taft/Briggs merger as the year's largest.

Those mergers that do occur will most likely be between midsize (which he defined as between 250-500 attorneys) and smaller firms, Hildebrandt said.

"The pressure is on the midsize and small firms," he said. "The growth of the larger firms is forcing consolidation in the midmarket space."

Overall, the remainder of 2019 is likely to be relatively quiet for law firm merger activity, he said, with most firms keeping focused on year-end profitability. Mergers in 2020 will be dependent upon broader U.S. and global economics and the appetite of firms that are already doing well to accelerate growth, he added, cautioning that no one can predict the future.

"People who use crystal balls," Hildebrandt said, "eat a lot of glass."

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A&O, O'Melveny Pull Plug on Merger Talks