Law Firm Merger Mania

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 Newberry, co-managing partner of Squire Patton Boggs, explaining in an interview with David J. Parnell of Forbes, why he led the charge to a Biglaw mega merger with Squire Sanders as managing partner of Patton Boggs.

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.

double red triangle arrows Continue reading “The Future Of Bingham McCutchen”

Yesterday we wrote about a managing partner’s abrupt departure from her firm — a departure that the remaining members of management noted in a somewhat snarky email.

At the time, we didn’t know where she was headed. Now we know her destination — and we can understand why some of her former colleagues might be bent out of shape over her leaving.

Where did this prominent partner land, and what might happen to the firm she left behind?

double red triangle arrows Continue reading “An Update On A Managing Partner’s Mysterious Departure”

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.

Alliteration aficionados are bemoaning the tongue-twisting fusion of Squire Sanders and Patton Boggs into Squire Patton Boggs. I prefer the feudal-esque Squire Boggs, but then again, I was not on the naming committee. Aside from this rebranding exercise, Squire Patton Boggs makes it clear that mergers (or acquisitions) are easier to execute in principal than reality.

Many of the firms in the Am Law 200 are the result of previous mergers including WilmerHale and DLA Piper. Most of these mergers were consummated before the recession, and since then, the parity between Am Law 200 firms has been dwindling.

The race for supremacy in the legal market has created a system with far less parity than before and consequently, a greater degree of difficulty for mergers. For example, the spread of Profits Per Partner in 2003 is right-skewed — and this will likely always be the case — but overall, there is little variance in spread of PPP in 2003 when compared to the spread in 2014…

double red triangle arrows Continue reading “Merging In The Post-Recession Market”

* “[T]hree names are unnecessary, and over time I think you’ll see Squire Patton start to take hold.” Sanders got the boot in this law firm merger, and it won’t be long before Boggs follows. [Am Law Daily]

* The “great female brain drain” at Am Law 200 firms isn’t slowing down, and it will only get better if Biglaw firms concentrate less on their failed “fix the women” approaches. [Harvard Business Review]

* Mary Jo White of the SEC promised to dust off an often ignored — but “potentially [] very powerful” — section of securities law to pursue financial violations. Be wary of the “innocent instrumentality” doctrine, defense attorneys. [DealBook / New York Times]

* We’ve got some breaking news for our readers from the “no sh*t” department: Law school graduates are still having a very tough time getting jobs as lawyers, and there is no real end in sight. [Sacramento Bee]

* If you’re looking for a way to explain a switch in your undergrad major when applying to law school, show admissions committees how pretty your grades are now. Tada! [Law Admissions Lowdown / U.S. News]

Yes, today is one of those days: a day with multiple law firm layoff stories to report (not to mention rescinded offers).

This morning we brought you news of 20 support staffers losing their jobs and 10 offers getting rescinded. Now we share with you the story of a firm cutting almost 40 people.

Which firm just joined the nationwide layoff club?

double red triangle arrows Continue reading “Nationwide Layoff Watch: Not Everyone’s A Winner”

Who is the white knight of Patton Boggs?

When we last checked in with the beleaguered law firm of Patton Boggs, things were looking… dicey. The firm was losing more partners — some due to layoffs, some due to defections — and firm leaders were suspending their partnership draws (and asking their fellow partners to do the same; yikes).

But today we actually have some positive news to share about Patton Boggs. Here comes the cavalry!

Which major law firm just signed a letter of intent with Patton Boggs regarding a possible merger?

double red triangle arrows Continue reading “Has Patton Boggs Found A Savior?”

We’ve seen this story before. A firm experiences a dip in profitability, then starts losing key partners (or reverse the order if you like; falling profits and defecting partners go hand in hand). Worried about its survival, the firm starts seeking out a white knight, in the form of a merger partner. And then….

Well, that depends. Sometimes a merger partner is found and the combined firms live happily ever after. Sometimes a merger partner is found and the combined firms suffer together, with the weaker firm effectively giving the stronger firm the “cooties.” And sometimes no merger partner is found at all; the troubled firm goes down, and rival firms swoop in like vultures to pick off the top practices and rainmakers. We can all think of examples of each scenario.

What will happen to Patton Boggs, the troubled law firm plagued by plummeting profits, fleeing partners, and layoffs galore? It’s too early to tell. Right now we’re at the stage of the firm casting about for someone to merge with. Who is the firm’s latest love interest?

double red triangle arrows Continue reading “Won’t Somebody Please Merge With Patton Boggs?”

* Hot on the heels of the SCOTUS stay, Utah has ordered its state agencies not to recognize any of the same-sex marriages that took place. Eww, Utah, you are being disgusting right now. [NBC News]

* The eminently quotable Chancellor Leo Strine of the Delaware Court of Chancery has been nominated to serve as chief justice of the state’s highest court. Best of luck with your confirmation! [Chicago Tribune]

* Law firm mergers rose by almost 50 percent after 88 firms joined forces throughout 2013 (a new record, according to Altman Weil). Let’s see if this year’s pace is as frenzied as last year’s. [Am Law Daily]

* The legal profession isn’t very good at diversity, especially in Texas. Here’s a not-so fun fact: just six percent of all equity partners at the largest law firms in Dallas are minorities. [Dallas Business Journal]

* “[I]t was the first time he had ever heard of someone being killed by a pair of underwear.” A man in Oklahoma was tragically killed after becoming the first-ever recipient of a fatal atomic wedgie. [News OK]

* A Supreme Court whose members are still afraid of using email will most likely have the final say on the NSA case, one of the biggest technology and privacy rulings in ages. Well, that’s comforting. [Talking Points Memo]

* Pittsburgh firm Buchanan Ingersoll & Rooney is reportedly in merger talks with Tampa firm Fowler White Boggs. Boy, a merger between two firms from lackluster cities sure sounds promising. [Daily Business Review]

* Law professors are completely outraged by the ABA’s proposal to cut tenure from its law school accreditation requirements. Quick, somebody write a law review article no one will read about it! [National Law Journal]

* Struggling to find a topic for your law school personal statement? You should ask someone who knows next to nothing about you and your life for advice. [Law Admissions Lowdown / U.S. News & World Report]

* Michael E. Schmidt, the lawyer killed in a police firefight, had some interesting things in his apartment, including a “green leafy substance,” a “white powdery substance,” and lots of pills. [Dallas Morning News]

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