More law firm mergers were completed in the first half of 2023 than in the same period in 2022 and 2021, according to data released on Monday by legal consultancy Fairfax Associates.

Twenty-eight law firm mergers took effect in the first six months of this year, compared with 25 deals each in the first halves of 2022 and 2021, according to Fairfax, which tracks mergers by effective date.

Fairfax reported 11 deals in the second quarter of 2023, after the first quarter saw a flurry of mergers between large firms. Eleven mergers were also completed in the second quarter of 2022 following a slower start to the year.

Law firm mergers are rebounding after deals dropped off during the COVID-19 pandemic; however, the 28 mergers of 2023 are below the historical first-half average over the past 10 years, which Fairfax said is 32 combinations.

Law firms’ interest in mergers “remains high,” as it has in recent previous quarters, the Fairfax statement said. While there are potential challenges as more firms consider “larger and more complicated combinations,” the consultancy said it anticipates more deals during the second half of 2023 and into 2024.

The largest merger completed in the second quarter was the tie-up between Alabama-based Maynard Cooper & Gale and Carolinas-based Nexsen Pruet. The firms merged April 1 to become a 550-lawyer firm called Maynard Nexsen.

Other deals that took effect in Q2 include several in the Midwest, such as Bricker & Eckler and Graydon Head & Ritchey’s merger that formed Bricker Graydon; Armstrong Teasdale’s combination with litigation firm Novack and Macey; and Hinshaw & Culbertson’s deal with aviation-focused civil litigation firm Adler Murphy & McQuillen.

Other combinations were in varied U.S. geographies, and included two cross-border deals: Holland & Knight absorbed Bogotá, Colombia-based firm Cuberos Cortés Gutiérrez, while mega-firm Dentons finalized its combination with Indian law firm Link Legal, which was announced last year.

Possible deals are on the horizon. London-founded Allen & Overy and New York-founded Shearman & Sterling announced in May that they plan to merge, in what would be one of the biggest law firm mergers in decades. The combined firm would have about 3,900 lawyers and a global revenue of about $3.4 billion, the firms have said.

An Allen & Overy spokesperson on Monday said the firms will indicate the timing of the partnership vote soon. A Shearman spokesperson had said in May the firms were targeting mid-July for partners to vote on the proposed deal, which would require approval by at least 75% of the partnership at each firm.

Sourse: Reuters