He who would be King – firms must run to stay still as merger glut gathers pace
When SJ Berwin elected Stephen Kon as its senior partner last year, it did so on a manifesto promise of international growth. And Kon has certainly delivered. The firm has never been one to follow the herd, and the successful conclusion of its merger talks with Sino-Australian giant King & Wood Mallesons (KWM) this week certainly marks it out. The combination – uniting the top 30 firm with the partnerships of legacy King & Wood and Australia's Mallesons Stephen Jaques – will create a firm of some 2,700 lawyers, with the UK firm's moniker being subsumed and KWM lawyers outnumbering SJ Berwin's five to one.
August 01, 2013 at 07:03 PM
3 minute read
When SJ Berwin elected Stephen Kon as its senior partner last year, it did so on a manifesto promise of international growth. And Kon has certainly delivered. The firm has never been one to follow the herd, and the successful conclusion of its merger talks with Sino-Australian giant King & Wood Mallesons (KWM) this week certainly marks it out.
The combination – uniting the top 30 firm with the partnerships of legacy King & Wood and Australia's Mallesons Stephen Jaques – will create a firm of some 2,700 lawyers, with the UK firm's moniker being subsumed and KWM lawyers outnumbering SJ Berwin's five to one.
For many years the UK firm was an obvious candidate for a US tie-up, with its strong funds practice proving a lure, most notably in recent years for Proskauer Rose. But while a US deal may have proved elusive, with the draw of such a union ebbing somewhat with the loss of some key partners and profits per equity partner (PEP) on a downwards trajectory (dropping almost a third in five years), the KWM deal provides what many of SJ Berwin's rivals cannot claim – namely a genuine pan-Asia Pacific presence.
Clearly, bedding down such a deal will be quite a challenge, and, with KWM itself such a new business, the strength of SJ Berwin's partnership – long viewed as 'sharp elbowed' and 'insecure' – will certainly be put to the test.
When the tie-up goes live in November, SJ Berwin will join the growing ranks of firms using – or being forced by – the downturn to significantly remodel their practice. With merger activity driving revenues at the top 50 firms this year to £13.5bn, the typically conservative legal profession has undergone rapid change over 2012-13.
Twelve of the top 50 have carried out a merger in the last year (and some more than one) and, although several of these have been with smaller bolt-on practices, some – such as Herbert Smith Freehills – are transformative. If the initial post-Lehman years saw aloof City firms sit back and watch as the national market consolidated, they have now undoubtedly bought into the philosophy.
With the annual 'cautious optimism' of law firm leaders yet to play out in the deal market, the still faltering economy continues to divide the profession. This year eight firms saw PEP jump by double figures, while 11 have posted similar figures, but in decline. And while last year five firms saw dips in revenue, that number has doubled this year.
Alongside the merger-driven growth of several key players is the strong recessionary performance of firms such as Irwin Mitchell and RPC, both looking to expand away from a core insurance focus, while flashy firms such as Mishcon de Reya are rocketing up on the inside.
One thing is clear from recent years – standing still is not an option.
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 AllMoFo Launches in Amsterdam: Exclusive Interview with Global Chair Eric McCrath
2 minute readHogan Lovells Boosts Corporate and Finance in 2025 Partner Promotions
Trending 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