How was the closing of 2022 for law firm mergers and acquisitions? Marc Gericó analyses it for Expansión

For the seventh consecutive year, our managing partner, Marc Gericó, has analysed for Expansión the end of 2022 in terms of mergers, acquisitions, integrations and corporate operations between law firms.

Before beginning his analysis, Gericó asks: “what headline do we have for 2022 in relation to mergers and acquisitions of law firms?”

Last year had a turbulent start, even though many firms had managed to stabilise after the pandemic. February 2022, the Russian-Ukrainian war began, which affected different sectors of the population throughout the year. The international mergers and acquisitions market, among others, has been clearly impacted.

Despite this, many law firms have not slowed down their expansion into new markets with their brands. For example, Latin American firms such as Creel García-Cuéllar Aiza or Bullard Falla Ezcurra have arrived in Spain with the aim of controlling risk.

Although it is true that “in global terms, it has not been a year of major operations by the main international firms“, says Gericó.

Law firms’ movements in mergers and acquisitions

In his analysis, he focuses on the movements of the largest global law firms. “Dentons already has a mature presence in the United States, Europe and Latin America. It has therefore decided to strengthen its position in emerging markets. In the last financial year, it announced a ‘historic combination’ with Link Legal – with 134 lawyers and 42 partners, one of the leading law firms in India and one of the highest volumes of high net worth individuals in the world – resulting in Dentons Link Legal offering a physical presence in five of the six largest cities in the country,” he adds.

The performance of other American firms, such as Holland & Knight, is also remarkable. This firm has integrated one of the most prominent real estate law boutiques in Los Angeles (USA). Its 17 lawyers are now part of Holland & Knight’s team of more than 1,700 attoneys.

During 2022, law firm mergers and acquisitions in the US have been led by smaller firms than in previous years. Among the mergers, Gericó highlights the following: “Fennemore Craig (194) with Wendel Rosen (56), Woods Roger (80) with Vanderventer Black (50), David Wright Tremaine (562) with McGoing (44), Stoll Keenon Ogden (145) with Katz Korin Cunningham (38) and Dinsmore & Shohl (725) ranked #112 in the Am Law 200, with San Diego boutique Mulvaney Barry Beatty Linn & Mayers (14).” As published by Fairfax Associates, a total of 46 completed deals are on the books in 2022, which is lower than the average of 55 deals per year to date.

In the UK, the largest deal is Norton Rose Fullbright – with more than 3,000 lawyers – which has integrated Clean Law. On the other hand, Clyde & Co (1,767) arrives in Chile through its integration with Grasty Quintana Majlis (40); Womble Bond Dickinson (918) integrates Cooper, White & Cooper (17); and Eversheds Sutherland (2,720) integrates the Bulgarian firm Tsvetkova Bevob & Partners (19).

“At the same time, DLA Piper has been working on the idea that its independent “Shiss Verein” structure, with the American and the British partnership on the one hand and the British partnership on the other – with full financial independence – should eventually be integrated into a single structure”.

Mergers and acquisitions in Spain

In his in-depth analysis, Gericó adds that “in Spain it seems that Taylor Wessing -top 25 in the UK- has finished plucking the daisy and everything points to the fact that its landing in the Spanish market will be hand in hand with Ecija“. He also highlights some of the main operations in the national market: Andersen and Montero Aramburu, which after the integration of CHR Legal in Barcelona, the global firm integrated its team in Lisbon to the Spanish structure, to announce in March the integration of the Valencian firm Sanz Torró. “On the other hand, Montero Aramburu’s intentions with the integration of Gómez-Villares & Atencia is to become the largest firm in Andalucía, surpassing its most direct rival: Martínez-Echevarría“.

Finally, our managing partner highlights the move made by Cuatrecasas, which has integrated the Mexican boutique Rico, Robles y Libenson, led by Juan Pablo Rico, and SLCM in Lisbon, thus exceeding 250 professionals at its Portuguese headquarters, led by Nuno Sá Carvalho.

“A more challenging 2023 after a 2022 of international movements”

“Law firms have been on the one hand facing a war for talent, dealing with a hostile geopolitical context and a recessionary economy, while at the same time adapting to new client demands (with a focus on tax, arbitration, real estate and energy in particular). However, despite the choppy waters in which law firms are navigating, I have no doubt that we will see an exciting 2023 with new challenges to overcome,” he concludes.

If you want to read the full article in Expansión, click here.