
In a recent discussion with the American Lawyer, Kristin Stark of Fairfax Associates shed light on the shifting dynamics of law firm mergers.
Although it may appear that the momentum for mergers has slowed down, this change is largely attributed to firms exercising greater caution.
Instead of rushing into deals, legal practices are prioritizing thoughtful evaluations, emphasizing the need for solid business cases and strategic reasons for their mergers.
This thoughtful approach contrasts with previous years, where some mergers were largely responses to external pressures or a lack of alternatives.
Thoughtful Evaluation of Mergers
Stark’s observations are particularly relevant against the backdrop of a strong legal market.
In 2024, the industry saw fifty successful mergers, and thus far into 2025, twelve additional mergers have already been announced.
Fairfax Associates forecasts that the total number of mergers this year could equal the previous year’s tally, and it might even exceed it if some currently ongoing discussions culminate in agreements.
Their year-end report on mergers reflected this optimistic view, predicting an active year ahead for Biglaw firms as they strategically navigate the landscape of mergers with a sharper focus.
Transforming Mindsets
Overall, while the number of mergers appears to be steady, the mindset of the firms involved has transformed significantly, shifting towards a more discerning and strategic approach.
Source: Above the Law