Law firm urge to merge wave continues so far in 2019
The law firm wave continues apace, according to a report in the Bloomberg Law online service. It reports that 27 firms have combined in the first three months of this year. The legal consultancy Altman Weil compiled the data.
The pace, according to the report, is in line with the torrid pace set last year, which saw a record-breaking 106 law firm majors. What’s driving the mergers? The report says that large firms are picking up smaller ones for geographical diversity. Altman Weil prinicipal Eric Seeger is quoted as saying that buying asmaller firms “usually provides a high value return on investment.”
Observers not in the story have told inhousecommunityus.com that much of the consolidation is the result of a long-term trend, in which much of the more routine work customarily done by outside law firms is now either handled in-house or by legal service providers such as Elevate and UnitedLex. The larger firms have less work to do in certain areas, so the alternative is either to consolidate resources, or shrink, which, in a global market, can be counterproductive.