Lizzie McLellan reports about midsize firms at Law.com:
"According to a recent report, more than a third of the Am Law 200 saw demand increase by more than 5% last year.
But their slightly smaller counterparts in the legal mid-market saw even more broad-based demand growth: 49.2% of midsize firms saw demand increase by more than 5% last year compared to 2020, the report by Thomson Reuters and Georgetown Law Center said.
The report also found that while Am Law 100 firms saw profits increase by 13.4%, and Second Hundred firms grew profits by 12.2%, midsize firms experienced an eye-popping 22.4% surge in profits over their 2020 mark...."
While it's well known that the AM Law 200 weathered, and even thrived, during 2020 and into 2021, the numbers show that many midsize firms actually did even better than their larger counterparts. The article continues:
"On the heels of that financial success in 2021, quite a few midsize firms have made strategic additions in the last few weeks, announcing mergers with smaller shops.
Oftentimes, the small firm being acquired has cited succession plan challenges as a reason for seeking out a partner. Others, like Verrill Dana and Rackemann, Sawyer & Brewster in Boston, found that a merger just made strategic sense.
“It was just sort of a light bulb moment,” Regina Hurley, a partner and chair of Verrill’s executive board, told Law.com. “So, we went back to our respective managing partners, and said this was sort of an interesting thought. And the next thing we knew we had another lunch scheduled.”
One common factor in all these combinations: midsize firms are seizing on this moment."
The talent wars at the top of the AM Law have gained a lot of press, but midsize firms are making strategic moves as well. As we talk with midsize and smaller firms around the country, everyone seems to be feeling the pressure of the market and seeing that this is a strategic time to be considering mergers, larger acquisitions, and legacy planning.
Compass Law Group specializes in law firm growth, whatever the size. If your firm is looking to acquire a smaller firm, enter a new market, find a partner firm for a merger-of-equals, or join a larger platform, we would love to share our expertise and industry knowledge.
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