The legal industry has seen a significant acceleration in law firm mergers in 2024, with a particular interest in smaller-firm acquisitions and major cross-border combinations. This trend is expected to continue throughout the year, according to a new report by Fairfax Associates.
A Closer Look at Increased Mergers in Q1
Fairfax Associates tracked 20 completed mergers across the sector in the first three months of the year, marking a 25% increase over the same period last year. This increase is a clear indication of the growing interest in mergers within the legal industry.
Some of the largest moves so far include the creation of UB Greensfelder, Kilpatrick Townsend’s entry into Chicago, and Spencer Fane’s combination in Salt Lake City. These mergers not only represent significant growth for the firms involved but also display a shift in the landscape as firms seek to expand their reach and capabilities.
What to Expect from the Scheduled and Upcoming Mergers
The report also highlighted Shearman & Sterling’s merger with UK-founded Allen & Overy is still slated for Q2, while Dentons’ combination with PJS Law in the Philippines is expected to be finalized in the coming months.
These scheduled tie-ups, along with the pace of finished unions and remaining interest in additional deals, reflect a likely uptick in law firm merger activity in 2024. The anticipation of these mergers indicates a proactive approach by law firms towards expansion and diversification.
Why More Firms Are Considering Mergers
With the benefits of scale becoming more apparent, more firms than ever before are willing to consider mergers. Firms with between 400 and 800 lawyers are especially eager to acquire smaller firms, which may be looking at succession planning and trying to find ways to provide a boost for the future. This trend suggests a shift in the industry, with firms recognizing the value of mergers in enhancing their capabilities and ensuring their longevity.
A Snapshot of Significant Mergers
The merger between Cleveland-based Ulmer & Berne (175 lawyers) and St. Louis-based Greensfelder Hemker & Gale (140 lawyers) to create UB Greensfelder was the largest completed deal of Q1.
Other notable deals include:
- Kilpatrick Townsend & Stockton (551 lawyers) joining with HMB Legal Counsel (58) in Chicago.
- Kansas City-based Spencer Fane (404 lawyers) combining with Snow Christensen & Martineau (50 lawyers) in Salt Lake City.
These mergers represent a strategy aimed at expanding the geographical reach of these firms while enhancing their service offerings.
A Growing Trend Is Small Firm Combinations
The report also mentioned that the percentage of combinations involving at least one small firm, (defined as a firm with between five and 20 lawyers) was up from 59% in Q1 of 2023 to 65% in Q1 of 2024. This increase suggests a growing recognition of the value that small firms can bring to a merger, particularly in terms of specialized expertise and local market knowledge.
Busiest Law Firm for Combinations: Fennemore Craig
Fennemore Craig was the busiest law firm for combinations in Q1, completing three of them: in San Diego with Sullivan Hill Rez & Engel (21 lawyers), Seattle-based litigation boutique Savitt Bruce & Willey (12 lawyers), and Sacramento-based tax boutique Wagner Kirkman Blaine Klomparens & Youmans (14 lawyers).
The firm revealed its latest expansion earlier this month, announcing that it will add roughly 50 lawyers and 30 staff from Denver-based Moye White, resulting in Moye winding down operations over the course of the year. This level of activity displays Fennemore Craig’s aggressive growth strategy and its commitment to expanding its capabilities and market presence.
The pace of law firm mergers in 2024 is picking up, and we can expect to see more total mergers this year than in 2023. This trend reflects the industry’s recognition of the benefits of scale and the strategic value of mergers in bolstering firms’ futures.
