Inhouse at The American Lawyer

A few years ago, if you’d asked me if I was interested in a Swiss verein , I’d have said no, I’m watching my figure and trying to avoid rich foods. My, how things have changed. In 2010 alone, three transatlantic law firm alliances were created using this corporate holding structure: SNR Denton (which synched Sonnenschein Nath & Rosenthal with Denton Wilde Sapte); Hogan Lovells (which paired Hogan & Hartson and Lovells); and Squire Sanders (which brought together Squire, Sanders & Dempsey with Hammonds). (Note: As part of this trend, The American Lawyer will begin footnoting firms that use vereins on our Am Law 200 financial charts.)

These newlyweds are following the well-established paths of other global giants, including DLA Piper and Baker & McKenzie. The three newest members of this club say that the verein’s structure—in which the component parts largely operate autonomously, especially when it comes to separate profit pools—was its appeal. Putting together an alliance quickly and trying to reconcile the different tax regimes would be onerous and time-consuming under a traditional merger format. Plus, under a verein, one office is not liable for the actions of another; and the branches are only subject to the regulations of that particular country.