HSF merger throws up partnership issues as Herbert Smith issues cash call

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Global giant raises capital and shakes up corporate as HSF moves through merger integration

The merger between Herbert Smith and Freehills continues to give rise to growing pains as last month saw the UK half of the firm issue a multimillion pound cash call to its equity partners in preparation for financial integration.

The cash call was issued in a memo sent earlier this year to all equity partners. It is understood that they have been asked to contribute £2,000 per equity point. Herbert Smith’s lockstep ladder runs from 43 to 100, meaning those at the top of equity, around 65 individuals, are liable to pay around £200,000 each.

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In defence of big – the maths are favouring two + two

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How many times do you hear lawyers roll out the line about mergers having to be two-plus-two-makes-five? True in many regards. Getting bigger doesn’t make you better or necessarily solve structural and strategic issues and mergers are hard to pull off effectively.

But when it comes down to it, this truism has become pretty misleading in Law Firm Land 2013.

Because scale does indeed matter in law, all things being equal. Bigger firms have the economies of scale – and these advantages are only getting more important given the continual shift towards smaller and more process-driven panels.

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Not so private client – Speechly Bircham and Withers call off high-profile merger bid

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Merger talks between private client law firms Speechly Bircham and Withers have been abandoned, the firms announced today (23 May).

A joint statement from the firms said: ‘Following detailed discussions between the management and partnerships of Withers and Speechly Bircham, both sides have now concluded that a merger would not be in the best interests of both firms and have agreed not to pursue this further. The talks have enhanced the respect that both firms have for each other.’ Continue reading “Not so private client – Speechly Bircham and Withers call off high-profile merger bid”

Merger fever grips mid-market

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The trend of mid-market consolidation continues apace, with two major non-City players, Mills & Reeve and Thomas Eggar, announcing separate deals to strengthen their national coverage last month.

With the merger of Bond Pearce and Dickinson Dees going live on 1 May and Withers and Speechly Bircham confirming merger talks in March, partners at Mills & Reeve were due to vote at press time on a potential tie-up with Manchester-based George Davies. This news came just days after Thomas Eggar announced its own merger with City firm Pritchard Englefield.

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Mills & Reeve confirms merger with Manchester firm George Davies

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Mills & Reeve today (24 April) announced that it is to expand its presence in the North through a merger with Manchester-based law firm George Davies, after partners voted in favour of the move.

Public sector and sports law specialist George Davies will add around £7m in revenue to Mills & Reeve’s £69.4m, based on 2011-2012 results, consolidating the national firm’s position in the Legal Business 100 rankings where it currently sits at position 47.

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Baker & McKenzie secures first UAE merger

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Baker & McKenzie has become the first global firm to merge with a leading United Arab Emirates law firm after securing a tie up with Habib Al Mulla.

The merged UAE office will be known as Baker & McKenzie Habib Al Mulla and will advise clients on local and international law across its offices in Dubai and, if it receives regulatory approval, Abu Dhabi.

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Addleshaw Goddard and Nabarro end merger talks

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Addleshaw Goddard and Nabarro have confirmed that they were in merger talks at the start of the year but the former is understood to have called the talks off.

In separate statements released by both firms, Addleshaws and Nabarro said that discussions would not progress any further.

Nabarro said: ‘Nabarro and Addleshaw Goddard did hold very preliminary conversations to explore a possible merger. However, both firms agreed not to pursue discussions further.’

It is thought that Addleshaws decided that there weren’t sufficient business interests for the firm to merge with Nabarro. One former Nabarro partner said the talks were being held before Christmas, with the firms exchanging financial information, although both firms declined to comment on this point.

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Withers and Speechly Bircham set to merge

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Private client leaders Speechly Bircham and Withers are set to merge, potentially creating a 600-lawyer, £170m practice that will fit easily into the top 25 of the Legal Business 100.

News of the union was revealed by RollonFriday on 22 March. On paper the union would make strategic sense. The two firms have almost identical profit margins (Speechly 20%; Withers 21%), although Withers has a considerably higher profit per lawyer of £72,000 to Speechly’s £46,000.

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4-5 Gray’s Inn Square merges with public law specialists Atlas Chambers

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4-5 Gray’s Inn Square has merged with Public law set Atlas Chambers in a bid to boost headcount following a swathe of barrister exits late last year.

The tie-up will see Atlas director John Lister and his team of eight barristers move in with 4-5 Gray’s Inn Square, which was hit by the exit of 24 members including seven QCs, in November last year (See: 39 Essex Street takeover heralds new dawn) and a further four clerks earlier this year. Both groups joined 39 Essex Street.

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Landmark three-way merger aims to end Dentons’ Europe woes

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At press time, partners at SNR Denton, Salans and Canadian firm Fraser Milner Casgrain (FMC) were poised to vote through a $1bn, three-way merger using a Swiss Verein model.

A source within SNR Denton said that the union was basically a ‘done deal’ with partners from all firms having met on 13 November to review the business plan behind the proposed merger. SNR Denton and Salans have been in talks for a while and have refused to comment on merger speculation. The addition of FMC to the union emerged in November. Continue reading “Landmark three-way merger aims to end Dentons’ Europe woes”