By Jennifer Smith
LBers might have beheld a swell of mergers in new months, as a matrimony bug bites law firms here and abroad.
The materialisation is on a clear upswing, with 60 mergers final year and some-more approaching as we hurl into 2012. Today WSJ took a deeper look during a trend, that is increasingly renouned as clients go tellurian and conflict annual rate increases — a normal motorist of distinction growth:
“It’s now a buyer’s market, not a seller’s marketplace for a initial time in 20 years,” says Bill Brennan, a principal with Altman Weil.
Prominent combinations in a U.S. embody a October 2011 coupling that constructed Edwards Wildman Palmer and Arnold Porter’s merger of San Francisco-based Howard Rice Nemerovski Canady Falk Rabkin, that we chronicled here.
Legal observers design to see some-more cross-border combos as well. Recent months saw a novel Pacific Rim fondness between a Chinese use and an Australian firm, that will mix as King Wood Mallesons. We wrote about that union, to be done in March, here.
But mergers aren’t all champagne and bullion bars. Tieups engage poignant risk, including a startle that your partner’s finances might not have been all they were burst adult to be.
A few years back, Altman Weil consultant Mr. Brennan attended merger-integration talks between dual firms that had reached a deal.
“To a warn of a other party, a acquired celebration had a outrageous unfunded partner-retirement requirement that they had insincere would be picked adult by a buyer,” he says, estimating that a requirement was 5% to 10% percent of a acquired firm’s annual revenue. When Altman Weil advises on mergers it creates certain such revelations start beforehand, he says.
Partners who don’t caring for a new change of energy can decamp, holding business with them. For a truly instance of a matrimony left bad, there’s a genocide of Thelen following what one associate interviewed by LB called “a bad merger” with Brown Raysman.