Law Firm Merger Mania: Locke Lord And Edwards Wildman Might Combine

How do the firms compare financially, and what would the new firm be called?

We’ve been hearing rumblings about it for weeks, and now there’s something to report: Locke Lord and Edwards Wildman Palmer have signed a letter of intent to merge.

Some folks at Edwards Wildman must be breathing sighs of relief (and hoping that nothing scuttles the deal). The past year or so has been challenging for the firm. In the spring, the firm laid off 52 lawyers and staff. In 2013, the firm experienced lots of partner defections and a significant dip in gross revenue.

It’s nice to see a troubled firm get rescued through a merger — e.g., Patton Boggs — instead of suffer the fate of Dewey. What do we know about the possible Locke Lord / Edwards Wildman deal?

Here’s a report from the American Lawyer:

Locke Lord and Edwards Wildman Palmer have tentatively agreed to push forward with a potential merger that would create Locke Lord Edwards, a 1,076-lawyer firm with offices in 22 cities, sources briefed on the matter tell The Am Law Daily. Locke Lord chair Jerry Clements will lead the combined firm.

The two Am Law 100 firms both have a recent history of combinations. Edwards Wildman is a 540-lawyer firm formed via the late 2011 merger between Boston-based Edwards Angell Palmer & Dodge and Chicago-based Wildman, Harrold, Allen & Dixon. Locke Lord, a 536-lawyer firm that adopted its current name three years ago this month, was created via the 2007 tie-up between Chicago-based Lord, Bissell & Brook and Texas-based Locke Liddell & Sapp.

A pun-loving tipster just observed, “Edwards Wildman used to be Edwards Angell, so now we have the Angell with the Lord!”

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Locke Lord seems to have a weak spot for wounded firms (or perhaps an opportunistic streak). Am Law reminds us that Locke Lord flirted with Patton Boggs before the deal died.

Locke Lord is the stronger party and therefore the rescuer here, but it’s not exactly thriving, at least based on the familiar financial metrics:

Edwards Wildman saw gross revenue dip 9.4 percent in 2013 to $311.5 million, while profits per partner remained mostly flat at $680,000 and revenue per lawyer slipped 4.2 percent to $575,000, according to the most recent Am Law 100 financial data.

Locke Lord’s gross revenue also fell last year, by 3.2 percent to $415 million, while profits per partner plummeted 12.2 percent to $935,000 and revenue per lawyer fell another 6.6 percent to $775,000, according to sibling publication Texas Lawyer.

There’s quite a bit of geographical overlap: Boston, Chicago, Hong Kong, London, Los Angeles, New York and Washington, D.C. But as with any merger, expect some folks to leave, voluntarily or involuntarily, both leading up to and after the transaction. For example, in London, Cooley might end up absorbing some or all of Edwards Wildman’s operation, according to The Lawyer and Legal Business.

We hear that the firms are shooting for any deal to go into effect early in 2015. The upside for Edwards Wildman is, well, survival. The upside for Locke Lord — which, as noted, didn’t have a fantastic 2013 — is that a merger could involve a cash infusion, i.e., incoming Edwards Wildman partners “buying their jobs” by putting capital into the new Locke Lord Edwards.

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We’ll continue to watch the situation. If you have information you’d like to share, feel free to email us or text us (646-820-8477). Thanks.

Locke Lord, Edwards Wildman Sign Letter of Intent to Merge [Am Law Daily]

Earlier: Nationwide Layoff Watch: 52 Lawyers And Staff Sent Packing