A hiring spree during recent years left many firms overstaffed.  Citing economic headwinds and slowing demand, some large law firms are tightening their belts, shrinking their attorney ranks and eliminating professional staff.  The decline in demand for legal work last year followed years of growth driven by a boom in mergers-and-acquisitions work, prompting hiring sprees accompanied by six-figure bonuses for even lower-level attorneys.  Peter Zeughauser observes that the demand for legal work “has fallen off the cliff.  The firms that were really red hot and significantly over-hired are the first movers to lay people off.”

As Stroock seeks out a merger partner, the firm's accounting system and unfunded pension could add additional barriers to a deal. Merger experts say that while those elements add an additional level of complication to merger talks, it doesn't mean a deal can't be done.The firm has explored a merger with McGuireWoods, Steptoe and, most recently, Squire.  Peter Zeughauser explains why pensions can become a potential impediment in any merger talks.

Mary K Young writes about the process of law firm mergers, the growing urge for firms to combine, the sensitivity around post-merger firm names, and retaining brand equity.

Merger discussions among even some unlikely pairings seem to be heating up. In their new book, Kent Zimmermann and John E. Morris explain why and offer tips on how firms of various sizes and market positions should approach merger discussions.

Small and regional law firms are looking to mergers to ward off competition from larger rivals, as a new tie-up in Virginia shows. Woods Rogers and Vandeventer Black are merging to create a regional firm of 130 lawyers in five Virginia offices.

The merger reflects an uptick in interest in combinations after the Covid-19 pandemic slowed the pace of tie-ups. Kent Zimmermann notes that multiple Am Law 50 firms are talking to each other about merging, as are many Am Law 100 and 200 firms. “Our merger practice is busier than it’s been in 20 years by about four times,” Zimmermann said. “As a large group of firms have grown extensively and gotten more profitable, their historic peers don’t want to be left behind and want to hit the accelerator on growth.”

In this article, Peter Zeughauser reviews the growth of Big Law and outlines what may be expected in 2022, which looks to be another big year for those firms.  Size matters.  Large firms with high revenue, high margins, and high levels of profitability will likely continue to widen the chasm between themselves and the next tier.

Zeughauser Group's 2021 Pocket Guide to the American Lawyer Rankings of the Am Law 200 by Profits Per Equity Partner and by Value Per Lawyer; The A-List; The Global 100; The Global 200; The China 50; The Asia 50; and The Corporate Scorecard.

If you would like a hard copy of the 2021 ZGuide, please send an email to zgadmin@consultzg.com with "2021 ZGuide Request" in the subject line and provide your mailing address.

While remote work has leveled the playing field for many up-and-coming young attorneys based outside major hubs, New York remains a hotspot for BigLaw partner and counsel promotions, largely driven by a recent boom in corporate work.  Paul Pearlman notes that a wave of newly minted New York partners is symptomatic of strong economic growth in the practice areas that are most prominent in the Big Apple, like finance, mergers and acquisitions, and capital markets transactions.  In reality, most firms, particularly firms in New York, have thrived during the pandemic, and for a lot of firms, one of the main keys to their success is the strength of their New York office.

Results of our survey conducted in partnership with Greentarget that focuses on the information consumption attitudes, behaviors and tendencies of in-house counsel. The report includes practical guidance to help law firms compete for greater share of voice among corporate legal departments.