Ten-Minute Discussions: What are the key issues law firms need to consider when planning a merger?

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There are many reasons a law firm might consider a merger. Mergers can be a useful way to expand into different practice areas or locations, increase operational capacity and business efficiency, increase revenue and market growth, or for corporate purposes. succession planning.

In the latest episode of our Ten-Minute Talks series, Partner Begum of Zulon and managing partner Claire Murray discuss all matters related to law firm mergers, in particular:

  • Why do law firms usually merge?
  • How can companies effectively plan for a merger?
  • Does money usually change hands during the process?
  • What if some of your partners don’t want to be involved?
  • What does success look like?

The three key factors companies should consider when planning a merger are:

  1. Strategy: Companies should have a solid strategy in place, paying particular attention to why they want to merge, to help identify the right merger partner(s) to achieve their specific goals.
  2. Constitutional revision: A review of the company’s LLP agreement is crucial to understanding its constitutional processes, for example, whether unanimous consent is required to affect a merger.
  3. Firm Due Diligence: It is also imperative to ensure that the company has undertaken its own due diligence, including finding out if there are any historical financial obstacles, such as high PII or rental costs.
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