03.19 Legal Briefs - LSAG Newsletter

ACQUIRING FIRM COUNT

There was a 30% increase of acquiring firms headquartered in the Midwest in 2018 and a nearly threefold increase of West-based firms acquiring other firms. Of the 15 acquisitions in 2018 involving firms headquartered in the West region of the U.S., six were by firms with more than 100 attorneys. Littler Mendelson was by far the largest of the set (1,500 attorneys). In two separate acquisitions they acquired Brussels based Reliance (20 attorneys) and Amsterdam based CLINT (8 attorneys). The four remaining acquiring firms were individually in the 100- 200 attorney range and acquired other West region firms with less than 10 attorneys. In 2018, the South and Northeast regions were tied with the most acquired firms (26 each). The West region saw a 36% uptick of acquired firms while Midwest regional activity was up 17% in 2018. The International count remained unchanged. International Acquisitions The pursuit by law firms to expand geographic reach and service line depth has expanded beyond the confines of the U.S. borders. There were 28 acquisitions of International firms in 2017 and 2018 combined. The activity over the past two years represents a growth in cross-border mergers. There were 14 each in 2017 and 2018 after averaging six per year between 2007 and 2016. Over the past two years, Europe accounted for the largest number of International acquired firms, but 2018 saw increases in African and Asian acquisitions. Dentons was the biggest acquirer as it merged with 15 of the 28 International firms. The average lawyer count of acquired firms was 84 lawyers. Cross-border mergers enable law firms to mirror the footprints of their largest clients in an increasingly globalized marketplace, providing them with integrated service and expanded coverage. Take for example two of the largest mergers involving U.S. firms headquartered in secondary markets (Bryan Cave in St. Louis and Womble Carlyle in Winston-Salem), both of which merged with large London-based firms. The creation of the two new firms—Bryan Cave Leighton Paisner and Womble Bond Dickinson— greatly increased the geographic coverage of each. In both cases, firm spokespeople were quoted as saying the new merged organizations would greatly increase the levels of service available to existing clients with global interests.

Source: Altman Weil; Cushman & Wakefield Research

ACQUIRED FIRM COUNT

Source: Altman Weil; Cushman & Wakefield Research

INTERNATIONAL ACQUISITIONS

Source: Altman Weil; Cushman & Wakefield Research

CUSHMAN & WAKEFIELD | 5