An Update on Heller Ehrman
There are vague rumors of something afoot at Heller Ehrman. Could the persistent gossip about a merger finally come true? Last week brought this report from TheLawyer.com:
The chairman of US firm Heller Ehrman has refused to rule out a merger after respected litigator Paul Alexander became the seventeenth partner to leave the firm this year. The firm lost 25 partners in 2007 and has lost 17 this year after Alexander quit to join Howrey in Palo Alto. [Ed. note: See links collected at the end of this post for more coverage of partner departures.]Heller chairman Matt Larrabee told The Lawyer that a merger was one of the options his firm was considering, but maintained that no decision had been taken at this point in time....
The rumour mill has put Heller in talks with a number of firms and Larrabee's refusal to deny that Heller is currently in merger talks will only add to the widely held belief that the firm is nearing a deal.
But it won't be the previously rumored merger with Winston & Strawn, which Heller sources tell us is history. Another possible suitor: Proskauer Rose, which emerged in speculation last month. One Heller tipster likes the idea, noting good geographical fit -- Heller's California and Asia presences nicely complement Proskauer's East Coast focus -- and practice group compatibility ("e.g., pro-policy holder insurance coverage, similar patent practices").
Heller chairman Larrabee told the Lawyer: "I can categorically deny that Heller has concluded we must merge." But internally the message is a bit different. Associates were told in a recent video conference that "the firm is definitely looking to merge, that it is an 'awkward' size for the market."
In the meantime, Heller Ehrman continues to go about its business, including major pro bono matters. For example, working together with the Public Interest Law Project and Bay Area Legal Aid, the firm just filed a lawsuit against Alameda County, challenging the planned termination of general assistance benefits to thousands of indigent individuals. More details here.
Heller chairman coy over merger rumours [The Lawyer]
The bigger the better [The Lawyer]
Culture Wars Take Their Toll on Heller Ehrman [American Lawyer]
Morning Wrap: Partner Defections [The BLT / Blog of the Legal Times]
Heller's Tempestuous San Diego Office Loses 4 [Legal Pad / Cal Law]
(56) Comments
A First!
Second!
First to say who cares.
Last one at Heller turn out the lights!
Lat - do you feel at all responsible for this?
Why would Lat feel responsible for the decisions of partners to leave a firm? I think the partners are quite able to assess their interests without any input from Lat.
Obviously, several of these partners see pastures greener at other firms. The pastures presumably appear greener b/c of other firms' partner-associate ratios, rate structures, hours requirements, and profit distribution (eat-what-you-kill, or more equitably divided). You know, big underlying economic and firmwide policy issues. Some of the moves may also come down to personality issues. Who knows. In any event, Lat's blog has no effect on such issues.
3:40 - Seriously, Lat. It's okay. We all make mistakes, but you've been pretty hard on Heller on here. The question is whether your tactics will also work against a firm like O'Melveny.
Seriously? What is with the weird obsession with Heller?
"recent" videoconference? That was definitely a month ago.
What about Orrick resorting to selling vacuums in order to make ends meet? That is newsworthy.
This just in: Heller stick sucks.
Did you mean "Heller STILL sucks"?
Like a vacuum cleaner.
what is up at Simpson?
4:37 Nothing new -- still the same ole corporate grind. People are floating rumors that KKR is buying Lehman Brothers Bank but its mostly just talk.
http://www.cooley.com/news/pressreleases.aspx?ID=41122320
http://www.cooley.com/news/pressreleases.aspx?ID=41122320
3:48 -- you've heard the O'Melveny rumors as well?
What are the O'Melveny rumors? Do tell!
Heller's SF office just lost another partner who is headed to Orrick
Big announcement coming June 18th. Firmwide all staff videoconference.
any update on that videoconference?
The rumor is -- nothing happened. Just the usual "we're fine".
Not what I heard - apparently there's a halt on all hiring at the moment.
Heller's merging with Baker & McKenzie.
5:39 - How did you come up with that?
I've heard that too.
There definitely is a halt on hiring (at least as far as administrative staff positions).
What does that have to do with a possible merger?
For a long time, Heller Ehrman has been cutting whatever and wherever it could, in an effort to prop up PPP, and position the bottom line to be attractive to an acquiring firm. Heller would be in fine financial shape if they trimmed the bloated class of middle-management incompetents by about two-thirds.
Baker is the ticket. You can book it. Merry christmas to the all of the headhunters out there.
Baker is the ticket. You can book it. Merry christmas to the all of the headhunters out there.
I will bite. When is it going to be official?
rumors say by July 4
shareholders have confirmed. it is baker.
9:51 when did the shareholders confirm it was baker?
new firm mascot will be Mayor McCheese.
Heller Ehrman is merging with Baker.
Public announcement next week, no later then Wednesday.
They want the HR Directors back in to handle staff issue and this week is the SHRM conference in Chicago.
Next week will be the cheerleading annoucement on the attorney front, and the axe-wielding annoucement on the staff side.
Alas, Poor Heller Ehrman, I knew him Horatio....
a fellow of infinite jest, of most excellent fancy?
2:04 Seems like it's another one of Heller's almost-mergers... a-la Proskauer and Winston. According to this source (http://www.law.com/jsp/article.jsp?id=1202422634279): "Heller's director of communications, Patrick Bustamante, said early in the day that the firm 'is not considering' a merger with Baker & McKenzie." Perhaps there was some discussion with Baker that did not pan out?
2:04 Seems like it's another one of Heller's almost-mergers... a-la Proskauer and Winston. According to this source (http://www.law.com/jsp/article.jsp?id=1202422634279): "Heller's director of communications, Patrick Bustamante, said early in the day that the firm 'is not considering' a merger with Baker & McKenzie." Perhaps there was some discussion with Baker that did not pan out?
Heller can apparently still win cases:
http://www.hewm.com/en/news/press/press_3377.html
The law.com article posted by 2:04 doesn't disprove the rumor at all. Just similar evasiveness.
Any new news?
Any Heller insiders have informed guesses about whether the incoming first years will still have jobs if there is a merger?
Or more to the point -- Baker insiders?
Well... two more prominent partners in the SF office jumped to Covington & Burling today.
Methinks we'll be hearing something soon.
Come on... where's the announcement? What's taking so long...
8:25 -- what group were the partners in? If they're going to make the announcement, I wish they'd just go ahead and do it. Waiting games suck.
Departing partners are in insurance recovery, which is sure as hell not a "non-core" practice group. They are also the two dudes responsible for Heller's band one Chambers ranking in that area. With them goes one of the prize practices of the firm.
Which is mysterious. One would think that the "merger partner" (or acquiring firm, if one wants to be less euphemistic about it) would not be pressing to see partners like this go. One potential answer is that merger partner does enough insurance carrier work to conflict away this practice area (which, though, again, is probably one of the larger reasons Heller has value as a merger partner). Another is that these partners just don't want to work for the new firm. Both are people who have a whole lot invested in the Heller culture, which they've been pillars of for ages.
In any case, Levin's email's statement to the effect that these departures would not hurt Heller's strength in this practice area basically just took away all management credibility for the time being.
Thanks for the info -- for those of us not in SF, we're usually the last to know these things.
This is just very puzzling. Why are all these partners leaving? I have not seen a single coherent answer (not even a hint). Can anybody explain?
More on the insurance coverage guys:
http://www.law.com/jsp/article.jsp?id=1202422678297
This is all really too bad. There was a time when I regarded Heller as a place I wanted to work someday.
The partners are David Goodwin and Lawrence Hobel. There is an article about their departure on the front page of SF Recorder. See it here (free reg required): http://www.law.com/jsp/ca/index.jsp. The BS reason: they were attracted to Covington's East Coast presence, which apparently was not a big deal over the past 20 years (one was with Heller since 1986 the other since 1989). Now all of a sudden Covington's "East Coast presence" became reason enough to leave.
I sure hope that Baker merger is not just another rumor.
Don't know if the bleeding will stop soon. That is 23 this year and 25 last year by my count. They need to announce and let the final culling begin. 1153 it is tragic. Heller was a place I enjoyed working.
http://abovethelaw.com/community/2008/07/hellerehrman.php
Assuming the Heller/Baker merger happens, the new firm could buy Hobel and Goodwin back in a second if they so desired. This obviously isn't about money/prestige. These two guys sense something has changed, just like the other 25 partners who left before them.