Law Firm Merger Activity Sluggish in First Quarter

SOMERSET, N.J., Apr. 9, 2010 - According to Hildebrandt Baker Robbins, leading consultants to the legal industry, as expected, law firm merger activity slowed significantly in the first quarter of 2010, with a total of four completed U.S. law firm mergers and acquisitions. This compares with 33 completed U.S. mergers in the first quarter of 2009, and 22 in the first quarter of 2008. Five additional mergers have been announced, which are slated to be completed during the second quarter of 2010, including the cross-border pairing of Hogan & Hartson with Lovells in the U.K.

"The small number of mergers in the first quarter is a result of the internal priorities most firms had in the latter half of 2009," said Lisa Smith, head of Hildebrandt Baker Robbins' Law Firm Strategy and Merger practice. "As we head further into 2010, we are seeing renewed interest in mergers as firms shift their focus towards strategic initiatives and competitive positioning."

The largest U.S. merger in the first quarter of 2010 was the merger between Cleveland's Benesch Friedlander Coplan & Aronoff and Dann Pecar Newman & Kleiman in Indianapolis. This was the only acquisition of a firm with more than 10 attorneys. The average size of the smaller firm in the four mergers completed in the first quarter of 2010 was 12 attorneys, compared with an average size of 39 in the first quarter of 2009.

Globally, there were six mergers in the first quarter of 2010 involving non-U.S.-based law firms. The largest of these was the cross-border merger of the U.K.'s Norton Rose Group with Deacons Australia. The second-largest international merger was between two U.K. law firms, Clyde & Co. and Shadbolt. Of the remaining four mergers, three took place in continental Europe (one intra-Italy, one intra-Spain, and one cross-border Spain-Portugal combination). There also was one cross-border Asian merger.

Four international mergers are scheduled to be completed during the second quarter of 2010, including the aforementioned Hogan-Lovells merger.

In addition to mergers and acquisitions among law firms, Hildebrandt Baker Robbins tracks office openings around the globe. In the first quarter of 2010, Hildebrandt Baker Robbins tracked 54 office openings, 87 percent of which did not involve a combination with another firm. Twenty-six office openings were in the U.S., as well as one office opening in Canada. Europe had nine openings, with three in the U.K., two in Italy, and one each in Poland, Germany, Belgium and Russia. There were seven office openings in Australia, five of which were the result of Norton Rose's merger with Deacons Australia in January 2010. The Middle East and China had five openings each, and Japan had one new branch office.

MergerWatch collects data from published reports, press releases and direct reports from law firms. It includes all mergers where the acquired firm has five or more lawyers. Upon routine verification of the data, some historical numbers have been updated since previously issued reports, and the number of mergers contained herein may change as additional mergers are announced.

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About Hildebrandt Baker Robbins
Hildebrandt Baker Robbins is a multidisciplinary consulting firm, helping law firms, legal departments and other professional service organizations plan, implement and measure key strategic, management, operations and technology goals. The firm serves major global law firms and corporations, and its consultants provide practical business and technology solutions from offices in New York; Washington, D.C.; Houston; Chicago; San Francisco; London; Somerset, NJ; Eagan, Minn.; Beijing; Hong Kong and Sydney. For more information, please visit www.hbrconsulting.com or send an email to info@hbrconsulting.com.