Mergers and Acquisitions

According to the Wall Street Journal (sub. req.), small law firms have adopted the mantra: merge or die. Indeed, the number of law firm mergers is staggering. “At least 60 mergers occurred in the U.S. and abroad last year, the highest level since 2008 and a 54% jump from 2010, according to legal-industry consulting firm Altman Weil Inc. Industry experts expect the figure to rise this year.”

Why the up-tick in mergers? The economic downturn has caused a shift when it comes to legal service providers: it is a “seller’s market for the first time in 20 years.” In other words, law firms are not able to raise rates in order to increase profits. So, small firms turn to mergers as a way to increase their revenue and allow them to compete with all-purpose, larger firms. Randall H. Miller, who as managing partner at Denver-based Holme Roberts & Owen LLP helped engineer its acquisition by Bryan Cave, explained that “[l]ittle by little, our ability to service our clients’ needs ha[d] been limited by our smaller size,” which was why he pushed for the merger.

Yet, small firm to large firm mergers are not the answer for all small firms. The article featured several potential problems….

double red triangle arrows Continue reading “Size Matters: Should I Get a ‘Merge or Die’ T-Shirt?”

* “It seems no one can use dirty words, except Steven Spielberg.” Well, sh*t, I’ll be damned. Is Elena Kagan going to be the voice of reason in the Supreme Court’s FCC profanity case? [Los Angeles Times]

* Ken Cuccinelli filed an emergency motion to get Virginia’s primary ballots printed. You can’t wait three days for Perry’s hearing? It’s on Friday the 13th. You know how that’s going to go. [Bloomberg]

* The Tenth Circuit upheld a ruling to block an Oklahoma law barring the consideration of Sharia law in court decisions. If this pisses you off, go and watch Homeland. You’ll feel better. [MSNBC]

* Dewey want to join the Magic Circle? Bloody hell, of course! Clifford Chance has snagged two mergers and acquisitions partners from Dewey & LeBoeuf. [DealBook / New York Times]

* What will an LL.M. get you in today’s job market? Not a whole lot. And if you’re counting that extra year of loan debt as something of value, then you’re just a masochist. [National Law Journal]

* Heather Peters, the former lawyer suing Honda in small claims court, may be SOL because of a SOL issue. Stay tuned for the results at her second hearing later this month. [Huffington Post]

Watch this before Sunday.

* Is New Jersey’s Senator Robert Menendez blocking Patty Shwartz, Obama’s Third Circuit nominee, out of resentment? Time to build yourself a bridge and GTF over it. [New York Times]

* Sullivan & Cromwell took the top spot among law firms in M&A transactions in 2011, with $325.7 billion in deals. You better believe they’re giving out huge spring bonuses. [Bloomberg]

* “No one wants to pay for something that doesn’t pay off.” At least those at the annual meeting of the AALS realize this applies to law school. When will the ABA sign on? [National Law Journal]

* In his first move after being appointed to the CFPB — a so-called valid appointment, mind you — Richard Cordray has launched a program for oversight of non-banks. [Legal Times]

* You can’t bill clients for hookers and porn and then try to get out of it by blaming your mental disorder. Or you can, but it will come back to bite you in the ass. [Thomson Reuters News & Insight]

* The Firm: from the best sellers list, to the silver screen, and now to the small screen. Look out for Mitch McDeere in his two-hour, television premiere this Sunday on NBC. [Wall Street Journal]

* The Supreme Court will hear oral arguments on Obamacare over three days in March. Let’s fast forward to June so we can see how Election 2012 is going to turn out. [Blog of Legal Times]

* The Grinch definitely stole AT&T’s Christmas this year, and even a team of Biglaw superstars couldn’t save the day. The company’s merger deal with T-Mobile is now officially dead. [Am Law Daily]

* A bed and breakfast owner told this lesbian couple aloha before they could even say aloha, and now they’re suing. And here I thought that Hawaii specialized in tiny, gay bubbles. [Washington Post]

* James Franco doesn’t just get bad grades on Rotten Tomatoes. José Angel Santana, one of his former professors, has filed a lawsuit saying NYU fired him for giving the actor a “D.” [Reuters]

* Snooki, Jersey Shore’s drunken munchkin, is being sued for $7M over a licensing deal gone bad. The worst part is that even if she paid up, she’d still have oodles of money in the bank. [Daily Mail]

* Sick of law school? Get all of your bitching down on paper, and turn your rage-filled manifesto into a short story for submission to the JLE Legal Fiction Contest. [National Law Journal]

Downward dog... kind of.

* Protip for Mark Hansen, AT&T’s lawyer: when you want a judge to save your merger plans, it’s probably not a good idea to demand that she make a ruling by a certain date. [Businessweek]

* What’s going on in Cooley Law’s defamation suit against Rockstar05 (other than discussion of whether the school’s attorney understands the tort’s defenses)? An appeal. [Lansing State Journal]

* Getting a prep school education in New York isn’t all it’s cracked up to be. Ask Philip Culhane, Simpson Thacher partner and name plaintiff in the Poly Prep sex abuse suit. [New York Times]

* America, f**k yeah! The Texas division of the Sons of Confederate Veterans is suing the DMV over free speech rights they might not have had if they seceded from the union. [Fox News]

* Yoga guru Bikram Choudhury tried to sue his disciples for infringement of his moves, but he ended up getting it downward doggy style from the Copyright Office instead. [Bloomberg]

* “If you want a good grade, you need to have sex with me.” At the height of finals season, many law students wish this were an option, but apparently it only happens in college. [New York Post]

Kim Kardashian

* With AT&T’s T-Mobile deal falling apart, in-house lawyer Wayne Watts could be heard singing, “it’s my merger and I’ll cry if I want to,” before more whining to the FCC. [DealBook / New York Times]

* Build us a border fence, and then get the f**k over it. Arizona lawmakers are soliciting the public for donations to keep out the people who would work at low cost to build it. [New York Daily News]

* Ever wonder what’s preventing greater diversity in the law? Apparently the problem is pre-law counselors with advising skills that are crappier than minority LSAT scores. [National Law Journal]

* ‘Til death (and billable hours) do us part: British firms are paying for employees’ divorces. Biglawyers await the day this gets picked up America. [Press Association]

* The star of this year’s Black and Blue Friday was the not-so-wise Latina who decided it was a good idea to pepper-spray her Xbox competition. Best deal ever? No charges brought. [CNN]

* It looks like Kim Kardashian got her Christmas wish early this year. Her soon-to-be ex-husband will not be suing her for $10M over his portrayal on her new reality show. [Seattle Post-Intelligencer]

Better as a redhead.

* You know you’re screwed when law school folks are coming after you. A University of Hawaii Law dean has jumped aboard the “sue Facebook for wiretapping” bandwagon. [The Republic]

* Walk like an Egyptian? Emory Law student, Ilan Grapel — who was detained by Egypt on espionage charges — may soon be released in an exchange with Israel. [NBC New York]

* Lindsay Lohan’s probation was revoked, and she’s facing up to a year in jail. Judge Sautner doesn’t like her, so here’s hoping that LiLo’s single and ready to mingle. [New York Daily News]

* Heather Mills is being sued by her hairdresser over $80K in unpaid bills. After getting $50M in her divorce, she can’t cry poverty — she wouldn’t have a leg left to stand on. [Daily Mail]

* Being sexy and using kinky props for a song entitled “S&M” aren’t options anymore, because David LaChapelle has settled his copyright suit against Rihanna. [Rolling Stone]

* Peter Mullen, executive partner during the M&A boom at Skadden Arps, RIP. [New York Times]

Back in August, the law firms of Faegre & Benson and Baker & Daniels confirmed that they were engaged in merger talks. Today the firms announced that their partnerships have voted in favor of the combination.

The merger will take effect on January 1, 2012, and the new entity will be known as Faegre Baker Daniels. The website will be located at faegrebd.com (which right now is occupied by a GoDaddy.com placeholder page).

What will the new firm look like?

double red triangle arrows Continue reading “Law Firm Merger Mania: Faegre & Benson and Baker & Daniels Make It Official”

* Police suspect that a client may have been the one to plant a bomb in attorney Erik G. Chappell’s car. Stay far away from family law, folks. [New York Daily News]

* “How come there’s not a school where people can go if they want to become trial lawyers?” How come you don’t know we already have 200 other law schools? [National Law Journal]

* I hope they signed a prenup, because AT&T and T-Mobile have added two more firms to their huge Biglaw wedding party — O’Melveny and Kellogg Huber. [Am Law Daily]

* “A lawsuit has been filed . . . by a female law clerk who alleges that [a] judge slapped her in the buttocks with a legal file.” And Lat wonders why law clerks hate their jobs. [Billings Gazette]

* LiLo may be behind on her court-ordered service hours, but surely she should be credited for the community service of wearing low-cut tops. [New York Post]

* Ninth Circuit Judge Pamela Rymer, RIP. [San Francisco Chronicle]

* It took SCOTUS more than four hours to write one sentence. But oh, to be a fly on the wall last night when they decided to deny a stay of execution for Troy Davis. [New York Times]

* AT&T wants to take the DOJ’s antitrust case to trial. This must be some sort of a joke, but the only punchline I can think of is the company’s crappy wireless network. [Bloomberg]

* Court-clogger or pocket-stuffer: Andrew Cuomo is debating signing a bill that could put more money into the hands of class action attorneys. [Thomson Reuters News & Insight]

* GW Law ex-adjunct Richard Lieberman was disbarred this week. What is with all of these lawyers who try to seduce minors online? Such a weird casualty of this profession. [National Law Journal]

* Because Chanel No. 399 just doesn’t sound as classy as Chanel No. 5, the company has filed a massive trademark infringement lawsuit against nearly 400 defendants. [ABC News]

* Memo to our readers: You know our exploding car thing was just a caption contest, right? We weren’t anticipating a real life lawyer car bombing. [Forbes]

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