Biglaw

Am Law 50 Firm Nearing Merger?

Will the mergers never end?

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While we’ve written a good deal about the looming Allen & Overy and O’Melveny tie-up, but that might not be the only high-profile merger in the offing.

A tipster reports that a certain global Am Law 50 firm with almost $1 billion in annual revenue is nearing a merger. Unfortunately, there are no details on the proposed partner and the firm’s communications department has ducked questions about it. So here’s a blind item because we don’t want to report on the forest if we’ve only seen a couple trees. We’d need to see more forest, you know? So if you have any relevant information on this merger, let us know.

In the meantime, let’s reflect on an absolutely gangbusters year in law firm mergers. At the midyear point, 52 mergers had been announced and the back end of the year hasn’t exactly dropped off a cliff. What’s driving this merger mania?

To some extent, it’s the fear. The fear that the opposite of growth is death. As business moves increasingly to the concentrated elite or the dispersed niche shops, the stagnant middle is losing out. Stockpiling talent to stay in that “household name” tier of top-flight firms is the conventional wisdom. New markets and new talent.

Yet as any divorce lawyer will tell you, mergers aren’t necessarily a good idea. Increased conflicts, costs, disgruntled partners, redundancy — these are all side effects of blockbuster mergers that can throw a wrench in plans for future growth. If firms aren’t cautious with their merger plans, they can end up worse off than they were before.

Which brings us back to the merger we’re hearing rumblings about. Is this another transatlantic deal? A play for more regional coverage? An en masse boost to a specific practice area? Details are sparse, but we’re very interested in learning more about the shifting legal landscape.

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HeadshotJoe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news.

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