Careful what you wish for: an edgy mid-tier serves up OC-Field Fisher talks
Given the continued economic uncertainty in global markets, that two law firms sitting in the crowded UK mid-tier like Osborne Clarke (OC) and Field Fisher Waterhouse are pursuing a tie-up – as emerged this week – is interesting but no shock.
September 20, 2012 at 07:03 PM
3 minute read
Given the continued economic uncertainty in global markets, that two law firms sitting in the crowded UK mid-tier like Osborne Clarke (OC) and Field Fisher Waterhouse are pursuing a tie-up – as Legal Week revealed this week – is interesting but no shock.
One thing that is notable are the rumblings that have been emanating from Field Fisher for some time now. From being one of the steadier and less attention-grabbing firms in the top 50, of late Field Fisher seems to be embarking on a dramatic round of merger mania all on its own.
News of its early stage discussions with OC comes just a few months after merger talks with LG came to an acrimonious end. As the talks with OC have been ongoing for a couple of months, Field Fisher didn't waste any time moving on to its next suitor.
On the face of it, you can see the logic of the current deal. The firms are reasonably matched from a revenue and profits perspective, with a tie-up set to create a £200m-revenue firm sitting within the top 20 – even excluding OC's recently announced European mergers.
The pair also share strengths in technology, intellectual property and mid-tier corporate work. Sure, it's been a while since OC cut the glamorous dash of its Perrin-era dotcom boom, but, having hunkered down for less hospitable markets, there remains a lot to admire in a classy and well-ranged firm.
From OC's perspective it is easy to see that of the top 50 firms with a similar practice leaning – Taylor Wessing, Bird & Bird and Olswang being the other obvious choices – Field Fisher would be an attractive partner.
And while neither firm comes with a significant ready-made international network, they have made no secret of their desire to build one, with both keen to focus on Europe rather than further afield.
So far, so good, and, on paper at least, the union is a better fit than Field Fisher and LG. But there is clearly more at stake than market share. The biggest challenges are likely to be cultural, which is where LG pinned the blame for its failed talks with Field Fisher (while defending itself against claims that the collapse was due to the state of its finances).
Field Fisher has not been short of partner departures in recent years, and there have been indications of partner discord for a while. Even the current talks from the outside at least seem unusually handled, with technology partner Michael Chissick leading the discussions alongside Mark Abell, while managing partner Matthew Lohn has been on sick leave.
There has been some grumbling about the influence of the thrusting Abell in the proceedings – making a neutral observer wonder how Field Fisher would mesh with the no-nonsense governance style of OC. With a large number of sizable mid-tiers on the merger hunt right now, who would bet this pair won't yet find other partners to entertain?
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