We often consult with law firms that wish to grow via mergers and the hiring of partner groups. There were record numbers of law firm combinations announced in U.S. last year and this strong activity continues into 2016. If you are interested in discussing the landscape of the group and merger market, reach out to us to schedule a consultation.
For a successful combination you should explore compatibility in the following five categories:
1. Clients (client or subject matter conflicts; industries served; complimentary services rendered; client focus and size; and geographic locations)
2. Finances (economies of scale; billing rates; actualization rates; portable books of business; entity/tax structures; debt, leases, property, and other assets and liabilities; benefits; and the compensation system)
3. Chemistry (people fit; compatible egos; control and autonomy issues; internal attitudes and support for strategic changes; geographic locations/platforms; educational backgrounds; experience; reputations; management/leadership styles and transition planning; staffing matters; and the compensation system)
4. Culture (values; approaches to collaboration; transparent or opaque systems; management style and organization; branding and marketing attitudes and identities; …and the compensation system)
5. Timing (stars aligning; economic trends; recent additions/departures in client or attorney ranks; leases and other financial triggers; pace of the process, focusing on positive forward momentum rather than letting time kill deals or allowing other suitors enter the picture and move faster; … and… you guessed it… the compensation system)
Most firms we speak with want to be acquiring parties and may be making assumptions at the outset. However, if you explore these factors with an open mind, you can discover compatibility in unexpected places. With a guided and strategic approach, you can avoid growth for growth’s sake and craft a combination where bigger truly is better. Your happiness matters. Call us for a confidential consultation.