Partners Ask During Firm Mergers: Should I Stay or Should I Go?

The legal industry witnessed a surge of merger activities last year, with US law firms announcing 100 combinations in 2024 transpiring across various geographies and practice areas.

With more combinations likely in the pipeline for 2025, this trend shows no signs of slowing down. For partners whose firms have recently undergone a merger or are contemplating one, there may be questions and anxieties about the future direction of the firm, and invariably, “What’s in it for me?”

These questions arise not only in mega-firm mergers, but in mergers with boutique firms as well. However, with an “eyes wide open” approach, a merger can pave the way for tremendous avenues for growth and new opportunities.

But if those avenues aren’t apparent after due consideration, perhaps being part of the merger may not be best for you. To develop your own roadmap to success, you should look at both the pre-merger and post-merger stages proactively and through different lenses.

Pre-Merger

When a law firm partner learns their firm is contemplating a merger, there are several critical considerations to navigate during this period with foresight and assurance so that the partner can make the informed decision of whether to be part of the merger or move on.

First, assessing the financial health and strategic goals of the other firm is essential. Partners should scrutinize the other firm’s balance sheets, growth trajectory, and market position to ensure the merger will enhance rather than dilute their own competitive edge.

Second, it’s prudent to consider the potential for client conflicts and how they will be managed. Ensuring that existing client relationships are preserved and understanding how both firms’ client bases might integrate is crucial for maintaining trust and continuity.

Third, partners should be aware of their position and understand how roles and responsibilities might shift in the new organizational structure. Opportunities for advancement or new practice areas might also emerge and can help in positioning oneself advantageously.

Finally, proactive communication is key. Engaging with leadership and fellow partners about expectations, concerns, and the envisioned future state of the firm can foster a smoother transition and align everyone toward common goals.

Post-Merger

Once the merger dust settles, it’s imperative for partners to anticipate several steps ahead to position themselves and their practices for long-term success. Being proactive is key. Seek out opportunities. Remain vigilant for indications of any weak links within the newly merged firm.

Some key steps to consider include:

Engaging with Colleagues

• Identify new colleagues. Start by mapping out the newly merged firm’s practice area structure to understand who your new colleagues are. This includes partners, associates, and support staff across various practice areas and geographies.
• Prioritize face-to-face interactions. Arrange meetings, lunches, or coffee breaks to get to know your new colleagues. If they aren’t local, consider scheduling video conferences or better yet, plan on visiting other offices. Building personal connections early can foster trust and collaboration.
• Discuss practices and synergy. Initiate discussions about your respective practices to identify potential synergies. Look for opportunities where your expertise complements each other, and brainstorm ways to leverage these synergies to benefit clients and the firm.
• Introduce clients. Consider which of your clients might benefit from your colleagues’ expertise. Facilitating introductions can help establish strong professional relationships and demonstrate your commitment to the merged firm’s success. The best way to get clients introduced to you by your new colleagues is to introduce your clients to them.
• Monitor integration pace. Ensure that the integration process as it directly pertains to you progresses smoothly without unnecessary haste. Regularly check in with your colleagues to address any concerns and make adjustments as needed.

Prioritize Leadership Communication

• Seek transparent communication. Ensure that firm leadership maintains open and transparent communication post-merger. This will help address concerns.
• Ask pertinent questions. Raise questions about your future and that of your practice. Understanding the firm’s direction and priorities will help you align your efforts accordingly.
• Address communication issues promptly. If you notice a lack of communication, raise this concern promptly to stay informed and avoid any misunderstandings.

Warning Signs

• Redundancies. Stay vigilant for any indications of redundancies within the newly merged firm. If you suspect your position or practice area may be at risk, you might start considering alternative options.
• Client conflicts. Continually assess any potential conflicts of interest that may arise with existing clients and prospective clients. Proactively address these with firm leadership to prevent disruptions and or disappointments.
• Bureaucratic issues. Be mindful of any bureaucratic hurdles that may emerge post-merger. Navigating these issues effectively will help you maintain productivity and efficiency.

More often than not, the red flags can be addressed to everyone’s satisfaction. If they can’t, then you probably should start to consider a lateral move.

While it’s natural for partners to experience anxiety regarding a merger, it also offers opportunities for practice growth—whether within the merged firm or possibly elsewhere if that proves to be in your best interest.

Common sense often prevails, and being proactive is the key. Do not remain passively on the sidelines. This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law and Bloomberg Tax, or its owners.