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26 January 2012 / Viv Williams , Phil Jepson
Issue: 7498 / Categories: Features , Profession
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Better together?

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Viv Williams & Phil Jepson tap into the merger discussions sweeping the legal profession...

According to research by Baker Tilley, 75% of UK law firms have spent some or all of the last year in discussions about mergers with other firms and many have offered themselves to larger practices as a potential exit plan. In the US, law firm mergers are up by 80% in the first three quarters of 2011 compared to the same period in 2010, with the market driven by transactions involving smaller firms.

Why is it that in the UK transaction volumes remain low, especially in comparison to volumes of discussions? First, it’s useful to consider the drivers forcing law firms to review their businesses and consider changing their shape and size:
  • The Legal Services Act: this is not only worrying the high street but also larger firms who fear attack from well-funded, but as yet unidentified, outsiders.
  • The economy: this has undermined the finances of most firms and removed the comfort that firms previously enjoyed. The oft-used refrain—“we are
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MOVERS & SHAKERS

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Sponsored by
Birketts—Nathan Evans

Birketts—Nathan Evans

Commercial and technology team in Cambridge strengthened by partner hire

Andrew & Andrew Solicitors—Shikha Datta

Andrew & Andrew Solicitors—Shikha Datta

Hampshire firm appoints head of new family department

Latham & Watkins—Sarah Lightdale

Latham & Watkins—Sarah Lightdale

Firm strengthens securities practice with partner return

NEWS
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