Law Firm Merger Mania: Lovells ‘Hearts’ Hogan & Hartson
Back at the beginning of the legal recession, when Heller and Thelen were collapsing, there was talk that a number of firms would either have to fold or engage in mega-mergers.
For the most part, that hasn’t happened. But today, Legal Week is reporting that Hogan & Hartson and London-based Lovells are at least talking about merging:
Lovells and Hogan & Hartson are in the early stages of merger talks, Legal Week can reveal, with the firms’ management teams currently assessing the case for a transformative union.Lovells is to discuss the proposed tie-up with the top 25 US law firm at a meeting of its international executive on 28 October. A deal would create a top 10 global practice in revenue terms.
With firms of this size, one imagines that merger talks will be complicated. And there is a lot that will have to happen for these firms to go from talking to combining. But if all the pitfalls are avoided, how big of a firm could we be looking at?
Details after the jump.
If these merger talks become more than just talk, the combined firm would be huge:
A union between the two firms would create a 2,500-lawyer practice with revenues of around $1.9bn (£1.2bn) according to figures from the latest Global 100 rankings from The American Lawyer and Legal Week.
Any suggestions for what a post-merger entity should be called? Feel free to toss out ideas in the comments.
But there is a long way to go. Legal Week points out some recent history regarding international liaisons:
Despite initial enthusiasm for the deal, both firms will be aware that US/UK mergers are notoriously difficult to secure given the challenge of marrying differing partner compensation and accounting models. The handful of transatlantic deals that have so far taken place in the legal sector have been effective takeovers rather than mergers of comparable practices.
Whether this turns into a new law firm or just a good title for a romantic comedy, it should be interesting.
Lovells and Hogan & Hartson size up high-stakes transatlantic merger [Legal Week]
Earlier: Law Firm Merger Mania: Bingham McCutchen Acquires McKee Nelson
(67) Comments
Comments
First!!!!
second
Lovells, Hogan & Hartson?
How many associates would be fired because of "redundancy?"
PE uses a four-in-one knot to fasten his necktie. And he often surrenders his balloon knot.
As a mainstay partner of a preeminent peer law firm, I look down with glee at these firms trying to engage in self-preservation by merging with other dying institutions. Think of it as trying to pawn off your 50 year old single daughter for marriage. You know there will be no "fruit" to bear.
PE, accepting your basic premise as true, what should these two non-peer firms do to survive the current economic climate?
HoganLovells.
Why are my palms hairy?
Lovell Hogan so that it can be affectionately referred to as LovHo, almost as great as MoFo.
+1 for #10
Bad idea. Bad, bad idea. These two firms have nothing in common. Any merger will decrease efficiency rather than increase it.
And if they're thinking about diversifying, is NOW the time to do it? Diversifying in boom times = good because you're preparing for bust times. Diversifying in bust times = retarded because, while you may be getting a "deal," you're getting a deal on what is predominantly crap.
Keep in mind that the above does not apply to buying up one or two trick ponies (i.e. small firms focusing in specialized practice areas).
There. You no longer have to "discuss" this merger. That will be $150,000.00. Thank you.
This comment is addressed to post no. 8.
I am glad you asked. I have always operated under the assumption that you can only rely on yourself to succeed. When you leave it up to others, you can count on failure.
Whenever two firms merge, an identity crisis ensues. Which firm's image or brand should trump the other? This in turn creates internal turmoil and resentment. In the end, joining two cancerous cells together will only lead to an inevitable and painful end. My advice to these firms is to regain your identity, save your brand on your own steam and eschew the idea of merging with an anchor that will only sink you. Adapt and overcome. If a firm can't do that, then perhaps it is time for them to get out of the industry.
WWLWD?
Ho Love
HogLovers
Hogan's Heroes
@10 = win
Well, I guess this possible merger explains why Hogan & Hartson has been firing people across the firm under the guise of "performance reviews." They are such an elite law firm that they have never, never in their entire history laid off attorneys (yes, this line is something they like to toot their horn about).
Hogan is trying to make Lovells believe their numbers are strong. Why in the world Lovells would want anything to do with Hogan & Hartson is beyond me - the firm is a dog with fleas. That will be Lovells' undoing if they move forward.
6, are you a "mainstay" or "emeritus"? Make up your mind. The schtick is critically impaired by your apparent ignorance of what an "emeritus" partner. Let me help you. It is a pathetic retired old man who hangs out at his old firm because his family, which he long ago abandoned to pursue his career, doesn't want him around.
And, more generally, from the dictionary:
emeritus
--adjective
1. retired or honorably discharged from active professional duty, but retaining the title of one's office or position:
dean emeritus of the graduate school; editor in chief emeritus.
Please conform your character appropriately.
Harts and Love
They will show how they fit their new name by making associates redundant.
first is lame
i second the nomination for LoveHo. we luv deez hoz.
Hogan's Lovells
This comment is addressed to post no. 20.
You are nothing more than a misinformed, misanthropic and ignorant brute. As I have previously explained, I retired on January 1, 2002 and spent 8 months travelling, reading books, fishing, golfing, etc.. During that time, the firm gave me emeritus status. However, I quickly grew bored of my leisure lifestyle and my wife passed away on June 14, 2002. I returned to the firm on September 1, 2002. I am not at the firm full time and come and go as I please. Please try to impress the lemmings you associate with regarding your knowledge of what emeritus means.
Heave Ho.
Dear PE,
"... the lemmings you associate with regarding your knowledge of what emeritus means."
The lemmings WITH WHICH YOU ASSOCIATE
- Future PE
Did PE drown his wife or was it a bathroom mishap?
28 ftw!
Everyone commenting on this website is a fag, including me.
forehead slappa
PE=Fail. Good job, #20; the balloon has been pierced and the air is seeping out, slowly. OTOH, the author ("PE") certainly has a vivid imagination. He is, however, still a massive tool. His wife committed suicide because she couldn't take being married to such an asshole.
So 25, does that mean if an energetic young associate was to search the bios of all lawyers at say the top 20 firms, he or she would stumble across at least one with the title Partner Emeritus?
PE,
How's your fantasy football team doing?
the name should be "HartLess" :))
Lovells has tried over the past four years to really expand in the US. It hasn't worked. Now I guess they're forced to try to pick up a US practice to get some work. Good luck.
Lovells has tried over the past four years to really expand in the US. It hasn't worked. Now I guess they're forced to try to pick up a US practice to get some work. Good luck.
Lovells has tried over the past four years to really expand in the US. It hasn't worked. Now I guess they're forced to try to pick up a US practice to get some work. Good luck.
Lovells has tried over the past four years to really expand in the US. It hasn't worked. Now I guess they're forced to try to pick up a US practice to get some work. Good luck.
PE=fail. 8 months with him and his old lady headed under ground for the duration.
Would you take an offer for summer 2010 at Hogan?
+1 for #10
32 = Win, 25 = Fail.
40, with news like this? Are you crazy or desperate?
35-38, Lovells UK's relationship with its US offices is one of mutually disappointed expectations. Lovells UK wanted Lovells US to support itself and grow its American business organically, and Lovells US wanted Lovells UK to refer more international business to the US. Neither happened very often, and Lovells lawyers on both sides of the Atlantic have been equally frustrated.
Hovels. Because your office will feel like one after a 32 hour day.
Cries of help from two sinking ships/firms. The 'inadvertent' leak of the merger talks, is simply a polite way of advertising that the (few) worthwhile practice groups at these two firms, are for sale to the highest bidder. Once the rainmakers are picked off, those left behind will collapse into each others' arms, and Hogan Lovells (or whatever) will be born (!)(perhaps delaying the inevitable demise of its constituent firms by several months)
28: suicide after she realized he was going to be around all the time.
46 - Your comment is incorrect. This was not an 'inadvertent' leak. Fact.
More notably, PE has finally picked up the phrase "preeminent peer" from JaKe, instead of the more dignified "peer." It's clear that the guard has changed, as goes Emeritus-related shtick.
43 - why do you suggest this is necessarily bad news? I don't believe this merger will ever go through, but if it did, I think it could be a positive step for both firms. Seems like many of the legal mags are saying the same.
44, and same story with A&O, Clifford, and FBD. The UK big cheeses can't sleep at night because their sparkling Magic Circle prestige doesn't mean jack over here, and they are outgunned in some major continental and Asian markets by U.S. heavyweights. So they spill millions of pounds here on half-assed, money-losing practices and ill-advised acqusitions in vain pursuit of vanity.
How about H2L?
Hey FYI ==> The SEC's 2010 summer program for 2Ls [1Ls only in NYC] is accepting apps through 12/15/09. Also, the SEC's advanced commitment program for clerks and 3Ls is accepting apps and closes 12/15/2009. For experienced attorneys, our Denver, Atlanta, Washington, and Fort Worth offices are now accepting apps for staff positions. The pay isn't close to BigLaw but there are many other aspects of the job that make it worth considering. Good luck to those who apply.
The Lovells associates in the NY office are hoping this merger goes through. We joined Lovells from other firms because we were willing to forego our bonuses in order to work fewer hours. Now we specialize in working on non-billable marketing matters that go nowhere. We are on call 24/7 for non- billiable work. We have no chance of ever making partner as the pyramid is already full at the top. Partners come here with no business expecting lots of referrals from the European offices, but that doesn't happen.
The Lovells associates in the NY office are hoping this merger goes through. We joined Lovells from other firms because we were willing to forego our bonuses in order to work fewer hours. Now we specialize in working on non-billable marketing matters that go nowhere. We are on call 24/7 for non- billiable work. We have no chance of ever making partner as the pyramid is already full at the top. Partners come here with no business expecting lots of referrals from the European offices, but that doesn't happen.
FYI - there is no billabe work at H&H for many associates as well. Not saying this is permanent - but don't expect this merger to solve either firms systemic problems.
Lovells brought lots of partners into their US offices that had no billable work. Apparently, they didn't want to fork out a lot of cash for them. But they didn't get them any work from Europe either, so the whole thing has turned out to be just a shitshow. This merger is a last-ditch effort at keeping the boat afloat but expect a lot of people to be thrown overboard.
Hogan is a dump. Partners and associates are leaving in droves. Some were asked, others are trying to save themselves. That said, Lovells isn't doing that well either.
Hogan is trying to make a case for itself, but is bleeding money now and ExComm's brilliant idea is to layoff over a hundred attorneys and staff... and more layoffs are to come.
MEMORANDUM
To:
All Associates and Support Staff
From:
Warren Gorrell
Date:
October 8, 2009
Re:
Press Reports
Over the past several months, we have been exploring various strategic opportunities that the firm might pursue, including some discussions with a small number of other firms. By their very nature these discussions have been kept confidential.
We have just learned that reports of ongoing discussions have reached the press and there will be an article in a London-based publication, Legal Week, speculating on what we are doing and linking us to London-based firm Lovells. There also may be an article in The American Lawyer since they are affiliated with Legal Week.
Until we have something definitive to say, we are not going to comment further since our discussions may not result in anything concrete happening. If the situation changes and there is a significant development to report, I will let you know.
Warren
So are any of the New York lawyers for Lovells going to be laid off because of redundancy?
The Lovells US offices are like two glossy new cars without engines. The reception areas of the offices are really nice, there are orchids in the bathroom by the reception, the offices have frosted glass, the business cards were just redesigned - all the superficial trappings of success, but I wonder if they make a profit.
It is a well known fact that American law firms have been arrogant and disdainful of European firms -- even though those firms have shown far greater social conscience. I apologize for the arrogance American firms have shown and applaud the fact that as capitalism grinds down, our firms will need to embrace firms in more civilized countries. It is only by engaging with the rest of the world's firms on a common path towards reducing cutthroat legal competition and concomittant profits that our young lawyers will achieve their ultimate birthright of working for the government.
In other words, I favor this merger.
Barack X
Warren Gorrell has absolutely gutted the heart and soul of Hogan and Hartson. He is desperately trying to turn H&H into a NYC style bigfirm, even though H&H traditionally has been the diametric opposite. Talented people were willing to join H&H, even though it has a (well-deserved) rep for being stingy on bonuses, because it had a reputation of treating its people well, and not kicking them out the door after 8 years. Gorrell just doesn't seem to understand this.
-Ex-H&H
H&H is a cauldron of misery
PE, instead of the crap these others put on here, let me say:
Sorry for the loss of your wife. May she be with God.
May happy memories of her enable you to carry on.
Two months before Hogan laid off 90+ employees, Warren Gorrell avoided revealing what was already in the works by saying, "I can't guarantee that there won't be layoffs." Nice try, Warr.
--A former HHer--
Lovells has been no slouch in the layoff department over the course of 2009, but with the exception of one big round of "redundancies" in the London main office, almost all of them have been stealth. In Europe and in the US, there have been steady and stealthy layoffs at every level from first year to partner for months. Lovells' policy has been not to broadcast any information about these departures, even within the individual offices where they occur, making them impossible to quantify.