September is shaping up to be a busy month for law firm merger news. On the heels of the Locke Lord / Edwards Wildman deal, we’re getting word that Bingham McCutchen and Morgan Lewis have reached an agreement to merge.
The news doesn’t come as a shock. Rumors of a Bingham/Morgan combination have been circulating for months. There was talk that such a deal could trigger some partner departures, and those departures have already come to pass (presumably removing from the picture some potential objectors to a merger).
Let’s have a look at what a Morgan Bingham — or Bingham Morgan, or maybe just a bigger Morgan Lewis, if no name change takes place — might look like….
Everybody in the Canadian legal profession knows that international firms Baker & McKenzie, Norton Rose and Dentons have set up shop in Canada. Baker & McKenzie has actually been in Toronto since 1962. Norton Rose absorbed the venerable Ogilvy Renault in 2011 before conquering the west by merging with energy powerhouse MacLeod Dixon in 2012. Dentons made its Canadian play in 2013 by merging with another long-established firm, Fraser Milner.
But how many people realize that there are several other prominent U.S./international firms working somewhat under the radar in the Canadian market? Powerhouses like Paul Weiss, Shearman & Sterling and Skadden Arps all have small Canadian offices where they service mostly American clients. Similarly, Dorsey & Whitney, Hodgson Russ, Dickinson Wright, Fragomen, and Clyde and Co. all have small Canadian presences.
By my count, that’s eleven U.S./international firms that have a real footprint in Canada, which leads to this question: why aren’t there more? Canada is a G8 nation with a strong economy. Our citizens are warm and friendly. We wear deodorant. Why have you forsaken us, international law firms?
Size matters, and to be successful today you really have to be in that Am Law 50.
– Alan Levin, managing partner of Edwards Wildman, commenting on the importance of being viewed as a “tier 1″ law firm in the overall Biglaw hierarchy. Levin identified possible merger partners by commissioning a study to separate firms into “tier 1″ and “tier 2″ groupings. Locke Lord was considered a “tier 1″ firm, and Levin will become vice chair of Locke Lord Edwards if the merger goes through.
Some have wondered whether Bingham might “fall victim to its own strategy” — i.e., whether the firm, which grew in power and profitability by swallowing up other firms, might itself get eaten up by a rival.
So what’s the latest on the Bingham merger talk front? And what might happen if the talks go further?
We were facing increasing financial pressure. So we undertook a substantial restructuring, and that restructuring put us on a solid economic and financial footing, allowing us to do a combination to meet our strategic needs.
Many if not most of the U.S.-based law firms in the 350 to 600 or 700 lawyer-range are feeling a great deal of financial pressure. We felt it more than many because we had a number of very large cases—totaling, at the end of the day, nearly $80 million of a $330 million budget—settle and wind up through normal course. That dramatic decline in revenue exacerbated the pressure on us, but the financial pressure on all law firms today are very significant.
Ed. note: This is the latest installment in a series of posts on lateral partner moves from Lateral Link’s team of expert contributors. Michael Allen is Managing Principal at Lateral Link, focusing exclusively on partner placements with Am Law 200 clients.
Is Bingham about to fall victim to its own strategy?
Since 1994, the firm has leapt from a regional firm that worked almost exclusively with the Bank of Boston to one of the fifty largest firms in the world. The impetus behind this expansion was a series of about ten mergers over the course of sixteen years. The firm picked up productive but possibly struggling boutiques and mid-size firms, growing from a 200-attorney firm in 1994 to an 850+ attorney firm in 2009.
How did Bingham reach its current state? Let’s look at the history.
Hop in the DeLorean and travel back in time with us.
In our two most recent FlashbackFriday posts, we looked at associate compensation in the 1990s. Today we’ll take a break from that topic and mix it up a bit. (We’ll return to cover associate comp in the remaining batch of legal markets at some point in the future.)
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past seven years. You can reach them by email: email@example.com.
Things have changed recently in Korea – a few of our US and UK client firms are looking, very selectively, for a lateral US associate hire. Until just recently, there was not much hiring like this going on in Korea, since US and UK firms started opening offices there. We have already placed two US associates in Korea in the past month at top firms. Most of the hiring partners we work with in Korea do not actively work with other recruiters.
If you are a Korean fluent US associate in London, New York or another major US market, 2nd to 6th year, at a top 20 firm, with cap markets or M&A focus (or mix), or project finance background, and you are interested in lateraling to Korea to a top US or UK firm, please feel free to reach out to us at firstname.lastname@example.org or email@example.com. Our head of Asia, Evan Jowers, was just in Korea recently, and Evan and Robert Kinney will be in Korea in a few weeks. We are in the process of helping several firms open new offices in Korea (a number of which are interviewing our partner level candidates) and also helping existing offices there fill openings.
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