Biglaw, Law Firm Mergers, Partner Issues

Troubled Biglaw Firm Searches For Merger Partner

This firm needs to take action to prevent worse damage from being done.

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Another law firm needs to be rescued?

Another law firm needs to be rescued?

For months, King & Wood Mallesons, one of the largest law firms in the world by total lawyer headcount, has been plagued by troubling news. From flat revenue to (ultimately halted) capital calls to partners heading for the exits, the firm knew it needed to take action to prevent worse damage from being done to its European and Middle Eastern business.

In search of a white knight to rescue it from certain doom, it looks like the firm has settled on Morgan Lewis & Bockius as a potential merger partner. As we all know, Morgan Lewis is no stranger to heroics in the face of law firm failure — after all, the firm accepted hundreds of attorneys from the now defunct Bingham McCutchen in a mass lateral hire just a few years ago.

Per U.K. publication Legal Business, the firms had been talking for quite some time:

A Morgan Lewis partner has told Legal Business that talks to combine with KWM had been on and off for months but KWM had been eager to press ahead with conversations in recent weeks. With 520 equity partners, the top 20 US law firm has a profit per equity partner (PEP) of $1.54m and revenues in 2015 of $1.84bn. In contrast KWM has over 550 partners around the world and PEP of $900,000.

It is understood that the talks were led by Morgan Lewis chair Jami Wintz McKeon and involved the possibility of a multi-profit centre union using a Swiss verein structure initially to “test the waters.”

Unfortunately, those talks have stalled since KWM funds partner Michael Halford resigned from the firm about two weeks ago, along with several other senior partners. Although Halford had been central to the discussions, they have not yet been completely called off. The Morgan Lewis partner who spoke to Legal Business seemed confident about the potential combination’s promise, noting that while KWM had surely spoken to other firms, “I think they liked us best.”

Will Morgan Lewis be able to save the day for yet another damsel firm in distress? For the sake of King & Wood Mallesons, we certainly hope so. If you have any information on this potential merger, please email us or text us (646-820-8477). Thank you!

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Exclusive: Morgan Lewis holds talks with KWM as Camerons circles [Legal Business]
King & Wood Mallesons, Amid Partner Exodus, Seeks White Knight for SJ Berwin [Legal Week]

Staci ZaretskyStaci Zaretsky is an editor at Above the Law. She’d love to hear from you, so feel free to email her with any tips, questions, or comments. You can follow her on Twitter or connect with her on LinkedIn.

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