Recently in Mergers Category

To be clear, 2011 was marked by stability in the world of BigLaw only in a relative sense, 2009 being characterized as perhaps the most tumultuous year in the history of major law firms and 2010 by paralyzing risk aversion and the refrain "flat is the new up."  Lateral hiring of associates and other service oriented attorneys picked up a trickle as the strongest of our major players sought to regain some of the bench strength they had let go in the aftermath of the 2008 Wall Street collapse, the leading pack ever thinning.  Trimming and efficiency remained priorities as corporate clients continued to enjoy growing leverage over their law firm advisors, and law firm mergers and acquisitions were abundant as more players found themselves struggling merely to stay afloat while those not fortunate enough to accurately gauge the dangers around them or find healthier players on whom to link were swallowed up by the relentless waters around them.

Our long held view that BigLaw is among the most conservatively run and change resistant industries on the planet seems understated in light of the tornedos that we've been experiencing of late.  That said, 2010 served to raise awareness of issues critical to our long term viability such as globalization, diversification of practices as well as personnel, alternative billing and work-life balance and it appears that by and large, while still far from healthy, BigLaw is a better place to live and work as we enter 2011 than it was a year ago.  

Listen carefully and you will hear BigLaw breathing a collective sigh of relief as we continue to distance ourselves from the worst financial crisis since the Great Depression and the ensuing havoc that characterized the legal market of 2009.  

While "tepid stability amidst continuing uncertainty" may best define the state of the legal market during the second quarter of 2010, stability of any sort has come as welcome relief from the historic tumult that characterized the brutal legal market of 2009.  

It would hardly be an overstatement to say that the 2008 debacle of Wall Street hit the world of BigLaw like a tsunami.  In October of that year, Thelen's management -- which was already on its last legs after its ill-fated acquisition of Brown Raysman only one year earlier -- began parcelling out entire sections of their firm.  At the same time Heller Ehrman, whose partners had voted to dissolve on September 26, was closing its cafeterias and starting to remove coffee machines from its numerous offices nationwide.  Like falling dominoes, one firm after another began throwing as much baggage overboard as possible in seeming desperation.  By the end of the month, Katten had laid off 21 attorneys, Sonnenschein 24 and Clifford Chance 20.  Even firm captains were jumping ship.  Thacher Proffitt's Vice Chairman lateralled to Greenberg Traurig and Thelen's Chairman was reported to be in talks to join Howrey.  Firms across the board were scaling back and in some cases eliminating their summer programs outright, forcing law students everywhere to consider debt forgiveness programs and alternative careers even before graduation.   

In the midst of all this dissolution hoopla, we would be remiss not to mention Brown Raysman, the once thriving New York start up that was swallowed up by soon-to-be former Thelen management in the latter's last ditch effort to salvage their Titanic.  So at least we know what Thelen was thinking.  But what about Brown Raysman?   No one ever placed them in the desperate category pre the ill-fated merger.

Over the last month we have seen venerable Heller dissolve and predict Thacher Proffitt and Thelen are not far behind;  relentless attorney hemorrhaging at these firms has already reached the top ranks with Thacher's Vice Chairman joining Greenberg Traurig and Thelen's Chairman reportedly in lateral discussions with Howrey.