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The American Lawyer reports that 2019 was a record-breaking year for law firm merger announcements and represented a “solid year of growth” for completed mergers, according to recent data collected by two legal industry consultancy firms tracking law firm tie-ups. Altman Weil, which tracks law firm merger announcements, announced that last year’s 115 combinations broke the record set by the U.S. legal industry in 2018, which saw 106 announcements. Additionally, another report by legal consultancy firm Fairfax Associates, which counts combinations once they are completed, announced that firms completed 59 mergers in 2019. While this is lower than the 71 mergers counted in 2018, it is still higher than the historical average of 54 mergers per year recorded between 2009 and 2018, Fairfax notes.

Two of the largest merger announcements from 2019 took effect the first day of the new year: Taft—the result of Cincinnati-based Taft Stettinius & Hollister merging with Minneapolis-based Briggs & Morgan—and Lathrop GPM, the offspring of Kansas City, Missouri-based Lathrop Gage and Minneapolis-based Gray Plant Mooty. Aside from Taft and Lathrop GPM, ten more law firm mergers are scheduled to close in the first quarter of 2020, Fairfax reports. This includes Dentons combinations with Indianapolis-based Bingham Greenebaum Doll and Pittsburgh-based Cohen & Grigsby as well as the pending marriage of Minneapolis-based Faegre Baker Daniels and Philadelphia-based Drinker Biddle & Reath, (as quoted in The American Lawyer).

The majority of mergers in 2019 continued to be small combinations, with eighty-five percent of the mergers involved firms between five and 20 lawyers, Fairfax reports. “We are continuing to see firms anywhere from 100 lawyers to 600 to 700 lawyers feel like they need more scale in order to compete effectively,” notes Lisa Smith, a principal at Fairfax Associates. “I think we’ll continue to see consolidation in the form of laterals and groups or small acquisitions or mergers of equal size. Consolidation is going to continue to be big in 2020,” she adds. Additionally, Zeughauser Group consultant Kent Zimmermann notes law firms are competing hard for talent. Deciding to scale up and merge can give a law firm a deeper bench and greater revenue, which can mitigate and ward off the poaching of top talent by other firms, (as quoted in The American Lawyer).

See highlights from the full article on The American Lawyer.

Contact Bill Sugarman for more information.

The American Lawyer reports that as 2018 came to a close, it was on pace to become the busiest year ever for law firm mergers, surpassing a record set in 2017. According to a recent report by legal consultancy firm Fairfax Associates, last year’s tally of 72 completed mergers was the highest since 2001. The report revealed that the 72 mergers completed in the past year was up from 65 in 2017 and easily outpaced the historical average of 52 mergers per year from 2008 to 2017.

Within the U.S., New York, Florida, Pennsylvania, Texas, Missouri and California proved to be the most desirable locations for firms looking to grow through mergers. Nine New York firms were absorbed into larger firms, according to Fairfax, while there were six mergers involving smaller firms in Florida, five mergers apiece in Pennsylvania, Texas and Missouri, and four mergers in California, (as quoted in The American Lawyer).

Fairfax principal Lisa Smith notes that there continues to be a lot of interest in combinations that transcend national boundaries. According to Smith, the past year was also a busy one for international mergers, thanks in good measure to Dentons’ continuing eagerness to add on new units. The firm’s eight cross-border mergers completed in 2018 accounted for more than half of the 15 counted by Fairfax, (as quoted in The American Lawyer).

Other major completed cross-border combinations included Bryan Cave with Berwin Leighton Paisner in London, DLA Piper with Delacour in Denmark and with Noguera Larrain & Dulanto in Chile, Eversheds Sutherland with Dvorak Hager & Partners in Prague, and Littler Mendelson with Reliance in Belgium and with CLINT in the Netherlands, (as quoted in The American Lawyer).

See highlights from the full article on The American Lawyer.

Contact Bill Sugarman for more information.

Law firm mergers remained robust during the first quarter of 2018, with a strong outlook for cross-border combinations, according to a recent report by legal consultancy firm Fairfax Associates. In the first quarter of 2018, Fairfax tracked 20 completed mergers, which counts combinations once they are completed. According to the report, this number is slightly lower than the 22 mergers completed during the same time last year, however, is still on par with historical averages.

Despite a fairly quiet cross-border merger market in the first few months of 2018, Fairfax principal Lisa Smith notes that there continues to be a lot of interest in combinations that transcend national boundaries. “We see an awful lot of interest from particularly U.K. firms continuing to look at the U.S. market, but U.S. firms also continuing to look at their international strategies,” Smith said. “I think that’s a continuing big trend,” (as quoted in The American Lawyer).

On the domestic front, many mergers completed within the first quarter were smaller or at the regional level. Nearly 75 percent of the firms involved had between five and 20 lawyers, according to Fairfax, with the largest purely domestic tie-up being between Ballard Spahr and Minneapolis-based Lindquist & Vennum, a union that became effective on Jan. 2. “We see a mix of a lot of smaller firm acquisitions, many of which are smaller mid-sized firms combining with other smaller mid-sized firms,” Smith said (as quoted in The American Lawyer).

See highlights from the full report and article on The American Lawyer.

Contact Bill Sugarman for more information.