A smart merger of two law firms requires careful study about compatibility. Fits between two law firms seldom are perfect. But if the cultures, financial metrics, clients and compensation systems generally are in sync, the opportunity for a successful merger exists. While one of these merger variables actually may be strained, harmony among
The Troubled Law Firm – Part 5 continued
Law Firm Merger Diligence-Client Compatibility
A law firm considering a merger has a lot to think about. Evaluating the differing cultures, financial metrics and compensation systems is a must. Merging two law firms without vetting the client fit is not only unwise, but it also is not likely to end well. Yet, finding an acceptable match in the
The Troubled Law Firm – Part 4 – Planning and Executing the Turnaround
Nations, like stars, are entitled to eclipse. All is well, provided the light returns and the eclipse does not become endless night. Dawn and resurrection are synonymous. The reappearance of the light is the same as the survival of the soul.
This is the fourth part in this series on Turning Around the
Law Firm Merger Diligence-Are the Compensation Systems Compatible?
Last week was noteworthy because two major anticipated mergers were called off; Orrick/Pillsbury due to reported conflicts and Dentons/McKenna for what may be best described as “cultural reasons.” But even if there were no conflict issues and cultures meshed well between two firms, most proposed mergers won’t get to a closing if their respective compensation
The Troubled Law Firm – Part 3 – A Successful Turnaround
When written in Chinese, the word ‘crisis’ is composed of two characters. One represents danger and the other represents opportunity.
The Crisis at Kaye Scholer
I was sitting back reviewing law business related articles on Zite. As the stories of doom and gloom and failing law firms big and
Law Firm Merger Diligence–Are the Financial Metrics Compatible?
Mergers of law firms garner a great deal of press and comment. As noted by Debra Cassens Weiss, law firm mergers during 2013 have been numerous. Robert Denney’s Primer on Law Firm Mergers provides a useful guide about approaching law firm mergers. Just last week, yet another merger was reported, this one involving
Law Firm Merger Diligence–Are the Cultures Compatible?
Law firm mergers are being announced all the time. As we saw in Jennifer Smith’s Big Law Mergers Questioned, their unveiling tends to stimulate extensive discussion. The pace of mergers is ahead of last year and as Catherine Ho wrote in Law Firms Experience Big Jump in Mergers, the number of combinations in 2013 is noteworthy. Mergers of regional firms, mergers of firms with international reach, mergers borne of strategic vision and potential mergers possibly encouraged by necessity—reasons aplenty seem to be fueling the current merger activity.
A successful merger depends on a lot of things, not the least of which is the ease and thoroughness with which
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Resolving Law Firm Transition By Merger–Important Compatibility Issues for Management’s Consideration
To merge, or not to merge? That is the question. More and more law firms face that issue these days. We often advise law firms facing that watershed possibility and take them from considering merger in the abstract to addressing its reality. But as Larry Bodine and Robert Denney recently reported, roughly 50% of mergers fail. Consequently, properly evaluating a potential merger is extremely important. A flawed analysis, a few undeserved assumptions or allowing momentum to overtake critical examination can doom a merger to failure. Conversely, a lack of confidence in a proposed merger because a systematic and thorough analysis was not performed can be a lost opportunity for both firms.
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Trust in Leadership and the Successful Law Firm Turnaround
It takes 20 years to build a reputation and five minutes to ruin it. – Warren Buffet
In my professional experience, no attribute is more important for the leader seeking to turn around a law firm than trust.
In a Forbes article by David Horsager, the author eloquently articulates it. “Among all the attributes of the greatest leaders of our time, one stands above the rest: They are all highly trusted. You can have a compelling vision, rock-solid strategy, excellent communication skills, innovative insight, and a skilled team, but if people don’t trust you, you will never get the results you want. Leaders who inspire trust garner better output, morale, retention, innovation, loyalty, and revenue, while mistrust fosters skepticism, frustration, low productivity, lost sales, and turnover. Trust affects a leader’s impact and the company’s bottom line more than any other single thing.”
Horsager’s perspective is spot-on. Without trust, the hope of successfully leading a law firm turnaround is nil. The question is — how does a leader gain the trust of a firm.
In my work, I have only seen leaders earn trust when words and deeds align. This means three things:
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