Redwood Analytics

There are many hidden and not so obvious challenges when a law firm merges with another. Sure there are positive aspects after the merger is complete i.e. a more diverse practice, more revenue, more talent, etc. But from a partner's point of view it's not so simple.

Partners with both firms, have a history with the firm and have put blood, sweat and tears into it. They've earned every step of the way to get where they are at and when you merge with a new firm, a new pecking order will emerge. Where will they land?

Ed Weseman, a consultant and advisor with Edge International, said in an article on law firm mergers, that mergers are not just a transactional event, it is more like dating. It's a process of making sure there is an attraction for both parties and a courtship before pulling the trigger.

In addition to the impact to a Partner and his status with the new firm, there is a whole area of working through things like compensation and retirement plans, duplication of shared services staff like accounting, docketing, librarians, couriers, etc.  Other challenges that might exist depending on if the firms plan to co-locate is what do you do with existing real estate leases and equipment contracts.

A major event like a law firm merger or even a discussion about it may result in some Partners retiring, or taking their book of clients and hanging their own shingle.  There is more risk, complications, and challenges that we often don't even think of when we hear about a law firm merger. Kudos to the Partners of firms that went through mergers in 2011 and 2012.