SJ Berwin's US strategy – time to dance?
For as long as I can remember there has been talk of when or whether SJ Berwin would try to put together a merger with a US law firm. For a firm with a thrusting US-style culture and a tempting European footprint for an international suitor, it isn't hard to see why some have viewed its end-game as a transformative cross-border merger. Some partners are well disposed to such a move, though opinions have always varied internally.
February 11, 2010 at 10:43 AM
4 minute read
For as long as I can remember there has been talk of when or whether SJ Berwin would try to put together a merger with a US law firm. For a firm with a thrusting US-style culture and a tempting European footprint for an international suitor, it isn't hard to see why some have viewed its end-game as a transformative cross-border merger. Some partners are well disposed to such a move, though opinions have always varied internally.
Previously, however, the firm has steadfastly denied that it was intent on such a move. It's not denying it anymore. As best as can be divined, the current focus is on whether to shift its strategy towards seriously seeking out a US deal. As part of this there are an informal group of firms that have been identified as potential partners, including Goodwin Procter and Orrick Herrington & Sutcliffe. Another firm cited as a potential match is New York's Proskauer Rose. Previously, O'Melveny & Myers' name has been attached to the firm, though not with much to back it up.
The most obvious union would be the Boston-based Goodwin, which has a similar private equity slant to its practice and an upwardly mobile approach to business. The two firms already know each other well with Goodwin having been established for several years as one of SJ Berwin's three non-exclusive US referral allies. Ties have been further strengthened by the two firms last year setting up an extranet and Goodwin taking office space in SJ Berwin's Queen Street Place HQ for its small UK practice. There were also some earlier indications that the ambitious Goodwin, which has yet to expand much beyond its US heartlands, despite having built a $658m (£410m) practice, was interested in tying up with SJ Berwin.
The role of Orrick in all this is harder to pinpoint. One Orrick partner this week confirmed that there had been informal discussions with SJ Berwin. However, Orrick chairman Ralph Baxter has reportedly this week been pointing out internally that putting together a merger with a 500-lawyer UK practice is no walk in the park, dampening expectations Orrick could rush to the altar. It's also a long time since Orrick, which over the last 12 years has considered high-stakes mergers with firms as diverse as Bird & Bird and Dewey Ballantine, is known to have looked at a big deal.
You can make a case for an Orrick/SJ Berwin deal, but it's not clear-cut. The US firm periodically flits between focusing on its projects/public finance roots, which doesn't match Berwins, and flirting with a serious push in the growth company/TMT space, which just about does. The international network is a reasonable fit, though.
For SJ Berwin the decision on whether to focus on a merger must be finely balanced. There will be a strong desire to steady the ship before considering any transformative deal, which would allow for a stronger negotiating position; with partner profits falling 49% last year to an average of £410,000 the firm currently finds its profitability somewhat below the equivalent at the most obvious US suitors. On the other hand a US deal could, if handled correctly, help provide stability and direction to a practice that has suffered considerably at the hands of the recession. With the impending union of Lovells and Hogan & Hartson reviving the focus on US/UK mergers for the small group of firms that could make such a deal work – of which SJs is most definitely one – this could be the moment. The music has been playing for SJ Berwin for a long time – perhaps it's finally time to dance.
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
© 2025 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 AllLatham's magic circle strikes, pay rises and EY's legal takeover: the best of Legal Week over the last few weeks
3 minute readJob losses, soaring partner profits and Freshfields exits - the best of Legal Week over the past two weeks
3 minute readMagic circle PEP hikes, the associate pay conundrum and more #MeToo - the best of Legal Week last week
3 minute readTrending Stories
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