Andrew Maloney of law.com reports on mergers among mid-size law firms. Large combinations always make the news, but through the first quarter of 2022 boutique firms actually make up a bigger percentage of law firm mergers. The article says:
"Smith, at Fairfax, said the recent uptick of midsize firm mergers isn’t out of the ordinary given the trend earlier this year. Fairfax’s analysis had found 62% of the announced mergers from the first quarter were small-firm mergers, involving at least one firm with between 5 and 20 lawyers.
Fairfax tallied just 14 completed mergersin the first quarter this year—below the 17 counted in 2021 and noticeably behind the average of 22 over the last decade."
In our work across the country we are seeing much more interest from small firms in entertaining conversations about mergers. This is for many reasons, of course, but most firms who have the conversation are driven by needing to serve clients. The market is pushing clients to consolidate legal spend. Previously local businesses are now needing national representation on increasingly complex matters. Boutique firms are used to outsourcing some niche work, but the pressure to serve top clients is leading some to consider the benefits of joining a larger platform.
If you or your firm might be interested in considering a merger, feel free to reach out for a confidential exploratory conversation. We would be glad to consult to see if one of our clients might be a good introduction, or if we can find a firm that might be a suitable match. There is both an art and a science to law firm mergers, and a trusted advisor can be a valuable resource in the process.