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.
- 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:
- 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.
- 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.
- 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.