Large US law firms are increasingly using mergers to grow, but a Bloomberg Law analysis shows that almost all firms trailed their rivals after doing big deals.
About two-thirds of the 18 largest mergers within the past 15 years saw the combined firms increase profits per partner and revenue per lawyer at a slower rate than competitors after their tie ups. All but three of those deals also trailed the average gross revenue growth across the country’s 100 largest firms.
The legal industry is in an era of consolidation, fueled by exponential gains at the country’s top firms and punctuated ...