Solicitors May be Vulnerable as Mergers Set to Rise

Thu, 06 May 2010

Legal provider Sweet and Maxwell has forecast a further increase in the number of law firms entering mergers. Mergers and outsourcing have proved popular among legal firms looking to reduce costs in an effort to restore profit margins. Sweet and Maxwell has conducted a study to determine the prospects of this trend increasing, with 10 per cent of respondents expressing intentions to merge with another law firm over the next year. One in four large law firms also said they expected to hire large teams of partners from rival companies during 2010.

Though the number of mergers is expected to rise, the increase will probably be driven by small companies, with large corporate not expected to merge for a couple of years yet. In an unusually large merger, however, US law firm Hogan and Hartson this week announced it is to merge with UK legal firm Lovells to form Hogan Lovells. The new company will employ an estimated 2,500 lawyers, though it is not known how many solicitors will lose their jobs as a result of the merger. Clients will be hoping for a reduction in legal costs as the companies making savings.
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