M&A Across the Pond: It's All Our Fault

Is the merger wave going as strong in the UK as it is here?  And if so, should we blame it on the Yanks?

In a new survey of 85 of the 125 largest firms in the UK, four out of five of the managing partners or executive directors responding reported that they had at least engaged in merger discussions in the past two years.  Perhaps more convincing evidence of the durability of the merger wave was that no one predicted 2006 would see less activity than 2005:  All respondents saw M&A among law firms up or at worst flat vs. this past year.

Short of outright  M&A, acquisition of laterals is also going strong.  The biggest deal of the year in the UK was DLA Piper's acquisition of a 45-lawyer media and intellectual property team from Denton Wilde Sapte.  (Not to date myself, but I remember when 45 lawyers was a halfway respectable size for an entire firm.)

"Legal services is a marketplace which is changing quite dramatically at present," said the conductor of the survey.  And maybe you should blame it on the Yanks:  A year ago 50% thought the influence of US firms was largely behind the increased M&A and lateral movement pressure.   This year?  71%.

Update 4-Jan-2006, 2:00pm:

An astute reader points out that it serves me right to believe everything you read in the MSM (my words—not his). 

In fact, I was mistaken to say "The biggest deal of the year in the UK was DLA Piper's acquisition of a 45-lawyer media and intellectual property team from Denton Wilde Sapte."  In fact, DLA picked up 11 partners, 18 lawyers, four trainees and 12 support staff.  A bigger deal was Orrick's taking 9 partners, 31 associates, trainees and legal staff, together with 32 support staff in June of last year.

I would give this very much on-the-ball reader credit, but he declines. 

Now, I for one am waiting to see how long it will be before The Financial Times prints a correction....