Why Law Firm Mergers Are a Growing Reality For More Firms
Editor’s Observe: In their new e-book “Law Company Mergers: Lessons From Successful Strategic Combinations,” Kent Zimmermann and John E. Morris outline explanations for and paths to law organization mergers. In this first of three excerpts from the e book, the authors demonstrate why corporations are more and more considering a merger. This excerpt was edited for length.
The will need for expansion is a person factor driving mergers. Most companies want and be expecting to come to be a improved version of themselves. Their partners aspire to retain or improve profitability, good quality and lifestyle, and to improve. As shoppers progressively price specialization and turn to firms that are recognized for excellence in supplied procedures, sectors and geographies, companies ought to exhibit ‘bench strength’ and top quality as deep or deeper than friends if they count on to draw the most advanced, lucrative assignments. In addition, in a common pyramid agency framework, wherever partners are leveraged with associates and earnings from associates’ billings, progress is necessary to preserve or increase gain margins and to develop continuing opportunities for ascending younger lawyers—that is, to make space for new companions with no minimizing leverage.
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