Altman Weil: Sharp Rise in Law Firm Mergers
Despite a troubled economy, many law firms are continuing to pursue a “growth strategy,” new M&A data reveals.
The number of law firm mergers is up so far this quarter, with 26 new law firm mergers and acquisitions reported in the past three months.
There were 18 such mergers and acquisitions announced in the first quarter of the year, according to Altman Weil’s MergerLine, an online tracking service.
“Even in a deteriorating economy, law firms continue to pursue a growth strategy via merger and acquisition,” Altman Weil principal Tom Clay said in a statement about the second quarter findings. “And based on our conversations with law firm leaders, we think the pace is unlikely to slow.”
The numbers are up from this time last year. There were 27 combinations in the first and second quarters of 2007, compared with 44 during the same period in ‘08.
The complete list of law firm M&A activity reveals that the largest of the mergers in the second quarter of 2008 was that of Pittsburgh’s K&L Gates, a 1,500-lawyer law firm, and Charlotte’s Kennedy Covington Lobdell & Hickman, a 175-lawyer firm.
Altman Weil’s analysis also took note that Charlotte, Washington, D.C., and Chicago are target markets for national law firms looking to grow.
While there were some notable large mergers, Altman Weil reports that the majority of the 26 combinations were small regional acquisitions: six in the South, five in the Mid-Atlantic states, three in the West, one each in the Midwest and New England. Another two were small multiregional combinations.
