As law firms attempt to survive in an increasingly competitive world, one strategy that is on the rise is the law firm merger which is at an all-time high. Firms are utilising this effective tool to achieve their strategic goals and find the best path to success through acquisition of another firm or by combining with a larger entity.
The rise in popularity is partly due to public sector cuts and fiscal belt-tightening in all sectors. Firms are looking for long-term solutions to protect their place in the market and a merger offers noticeable cost savings through economies of scale and cross-selling potential.
Free initial discussion
We have consultants who are experienced with mergers and we provide a no obligation, free initial discussion to explain how we can assist you in your expansion strategy. Call us on 0115 8700 443 or email email@example.com.
We successfully manage practice group acquisitions and law firm mergers. We help law firms with the development and implementation of winning merger and acquisition strategies.
We discreetly represent law firms of all size and help them identify merger partners, manage the merger process, and successfully originate and close merger deals between legal practices. We specialise in small to medium law firm combinations, mergers of equals, international mergers, and multi-firm mergers.
Done correctly, a law firm merger can be transformational in bringing success that neither of the firms could achieve on its own. Done incorrectly, merger discussions can be disruptive, extremely counter-productive and leave a firm in a much weaker position than had it never considered combining with another.
There is much legality to consider however and with any merger or acquisition, there is a lot of risk involved.
A merger can be a great idea and provide a range of opportunities for both parties, yet no company should ever rush into an acquisition deal. It is a long process, and discussions can continue for months.
Define Goals and Objectives
Before you go into any talks, it’s important to define the business goals and objectives. What do you want to achieve? How will their merger help you achieve it?
Achieving a successful merger isn’t always straightforward, you will need to consider:
- If some people, especially equity partners, do not retire you may not create the right structure needed to make it work financially.
- Our work on mergers typically involves working with both firms over a period of time addressing these and other key issues. Sometimes it can be very useful for the partners in both firms to meet and in effect have a joint partner retreat. It can be a great way of helping the two teams to bond.
- The culture may not be right.
- The merger needs to make sense to clients.
- The new firm needs a clear position in the market.
- There will be relatively few firms you would want to merge with.
- You need to be clear about the leadership and management of the ongoing firm.
Our merger and acquisition services include:
- Build the business case – identify synergies and create a vision for the combined firm.
- Conduct due diligence - We prepare a report to management, designed to highlight potential risks of the merger.
- Develop merged firm structures, including governance and compensation systems.
- Evaluate strategic expansion opportunities.
- Examine operational issues related to merger.
- Facilitate merger discussions – manage the merger process.
- Merger implementation.
- Negotiate deal terms.
- Perform financial due diligence and analysis - to highlight potential synergies, cost savings and most importantly how the profit share and capital accounts might look.
- Research and approach merger candidates.
- We advise on any tax implications of the proposed merger and how to minimise any tax exposure.
- We provide a market valuation for the firm.
We work with our clients to realise their objectives, punching above our weight and delivering impressive results.