Source: Bloomberg Law
The Surprising Data
A comprehensive Bloomberg Law analysis has shattered conventional wisdom about law firm mergers. The numbers tell a sobering story about the real impact of these combinations over the past 15 years.
Key findings:
- Two-thirds of merged firms lagged in profits per partner and revenue per lawyer
- Only three combinations beat average Am Law 100 revenue growth
- Organic growth leaders like Kirkland & Ellis (415%) and Latham & Watkins (196%) far outpaced merged firms
Why Most Mergers Stumble
The analysis reveals several critical failure points in the merger playbook:
- Rush to scale without strategic vision
- Poor integration planning
- Mass partner exits post-merger
- Cultural misalignment
- Rate pressures and client conflicts
The Success Stories
While most combinations struggled, a few firms found the winning formula:
- Husch Blackwell after Whyte Hirschboeck merger
- Nelson Mullins following Broad and Cassels combination
- Hogan Lovells showing strong profit growth
The Integration Challenge
McKinsey’s Albert Bollard emphasizes that successful mergers require more than financial compatibility. “Too often we see that the merger is seen as a strategy in and of itself,” he notes.
The Winning Formula
Successful firms focus on:
- Detailed integration planning before signing
- Clear communication with all partners
- Strategic practice area alignment
- Robust talent retention strategies
- Client-focused growth plans
Looking Ahead
The message for law firm leaders is clear: while mergers might seem like an attractive path to growth, the data suggests that careful organic growth and strategic hiring often yield better results. In an era of rapid consolidation, sometimes the best strategy might be to resist the urge to merge.
Read more: Bloomberg Law
