Source: Global Legal Post
In the latest sign of continued consolidation within the legal industry, Chicago-headquartered McDermott Will & Emery and New York’s Schulte Roth & Zabel have announced they are in advanced merger talks that would create a combined firm with $2.8 billion in revenue.
A Strategic Combination
The firms confirmed on Thursday that they are “actively finalising a transformative combination” with a deal anticipated “in the coming months.” If completed, the merger would create one of the top 20 US law firms by both revenue and headcount, with approximately 1,700 lawyers.
A McDermott spokesperson described the potential union as bringing together “two premier firms with complementary strengths and exceptional track records,” emphasising their shared commitment to innovation, client service excellence, and a people-first culture.
Complementary Strengths
The merger would unite firms with distinct but complementary practice areas. McDermott, the significantly larger of the two with 1,350 lawyers, generated just over $2.2 billion in revenue in 2024 according to American Lawyer data, with profits per equity partner (PEP) reaching $4.6 million. The firm has particular strength in healthcare, tax, and mid-market M&A.
Schulte, with 360 lawyers primarily based in New York, brought in $618 million in revenue last year with PEP of $4.1 million. The firm is renowned as “the nation’s preeminent private capital law firm,” with top-tier practices in funds, financial services regulation, and mid-market private equity buyouts.
Timing and Context
The merger discussions come at a significant moment for Schulte, which has experienced notable senior partner departures this year. Three private equity specialists have already joined McDermott, including Allison Scher Bernbach, who became leader of McDermott’s US private equity fund regulatory practice in New York in February.
More recently, Michael Swartz, co-chair of Schulte’s litigation group, departed for Quinn Emanuel, whilst restructuring leader Douglas Mintz joined Cadwalader Wickersham & Taft.
Despite these departures, Schulte showed strong financial performance in 2024, growing revenue by 13.5% and PEP by 24%. Earlier this year, the firm abandoned its full-equity partnership structure and introduced a non-equity tier, joining numerous other major firms making similar moves to retain and reward top talent.
Industry Consolidation Trend
The potential merger reflects broader industry trends towards consolidation as firms seek scale to enhance profitability and market presence. Currently ranked 23rd in the AmLaw 100, McDermott would likely move to approximately 13th place by revenue following a successful combination, whilst Schulte sits at 91st.
Kent Zimmermann, a principal at law firm consultancy Zeughauser Group, noted this represents “part of a pattern of accelerating consolidation among law firms.”
“Larger and more profitable firms often have a talent advantage because they tend to have more flexibility on compensation, more money to invest to advantage the firm broadly, have a higher profile, and are often seen as a safer choice among talent and clients for the most sophisticated work that commands high rates,” Zimmermann explained.
Broader Market Activity
According to Fairfax Associates, law firm merger activity has remained steady in 2025, with 22 mergers completed in Q1 compared to 21 in the same period last year. Four of these involved firms with more than 100 lawyers each, with the largest being Atlanta-based Troutman Pepper’s tie-up with Dallas-based Locke Lord to create Troutman Pepper Locke.
The legal sector has witnessed several high-profile combinations recently, including last year’s merger between Allen & Overy and Shearman & Sterling to create A&O Shearman, and the impending June 1st combination of Herbert Smith Freehills with New York’s Kramer Levin Naftalis & Frankel.
Looking Forward
As the legal industry continues to evolve, this merger represents another significant shift in the competitive landscape. The combined entity would possess the scale and resources to compete more effectively for sophisticated mandates whilst offering clients expanded geographic reach and practice area expertise.
Industry observers will be watching closely to see whether the merged firm can successfully integrate two distinct cultures and practice areas whilst delivering on the strategic promise of the combination. The success of this integration may well influence other firms considering similar consolidation strategies in an increasingly competitive legal marketplace.
Read more: Global Legal Post
