Mergers and acquisitions are picking up, so why not law firm mergers?
The merger is of course pending approval by both firms’ management, but Lovells’ management committee is reportedly meeting later today to recommend its partnership vote in favour of the deal. The merger would be the highest profile merger of US and UK law firms ever, according to the Law Blog.
But, just as associate pay dominates law firm news, it will be a large part of the difficulties the firms could face in the merger. Hogan partners are compensated “for what they do, where they do it,” a Hogan partner said to The National Law Journal in an article that discusses the potential obstacles of the merger.
Lovells, the Law Blog says, has a more seniority-based pay scale.
But if they can work it out, both firms would be expanding their world-wide presence, which is of course the purpose of the deal.
NYLJ: For Lovells, the merger would give it a huge entree into the U.S. market — with roughly 900 lawyers, up from its current 38, according to the firm’s Web site. Hogan — already the most international of Washington’s home-grown large firms, with around 20 per cent of its team outside the United States — would add large numbers in Europe: A merger would more than double the total number of lawyers Hogan has in Germany, bringing it from 60 lawyers in Berlin and Munich to more than 130 lawyers, and giving Hogan offices in Frankfurt, Düsseldorf and Hamburg. It would roughly quadruple the firm’s head count in the United Kingdom. The merged firm would also have offices in Asia and Russia, key developing markets.
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