Where Are the Eligible Acquisition Targets? Acquiring Smaller Firms

June 29, 2023
The American Lawyer

Types : In the News

Am Law 100 firms may wish to grow by finding midsize merger partners. But those targets would rather grow on their own terms.

  • Firm leaders at leading midsize firms said they turn down acquisition offers frequently because they would rather pursue their own growth strategy.
  • The widening gulf in rates and compensation have priced firms at the top of the Am Law 100 ranking out of merger opportunities with midsize and smaller practices.
  • A majority of law firm mergers in 2023 have involved at least one firm of less than 100 lawyers.

Like Cohen Seglias, Montgomery McCracken Walker & Rhoads regularly fields merger interest from larger firms seeking to grow their bench in litigation and enter the Philadelphia legal market, said the firm’s managing partner, Steven Pachman.

“We haven’t found a meaningful merger candidate, but we are keeping our ears to the ground,” Pachman said. “Some firms make a move just to make a move. … I wouldn’t be surprised if we make a move in the next six to nine months.”