This AmLaw Merger Looks Good. Here’s Why: McDermott Will & Schulte

When it comes to law firm mergers, I’ve seen the Good, The Bad and The Ugly.

When brands or market position don’t match, you know in advance that my headhunters are going to have what Tom Cruise referred to Top Gun, as a “target rich environment” within six months.

McDermott Will & Emery and Schulte Roth & Zabel are scheduled to officially combine, establishing a new firm operating under the name McDermott Will & Schulte. The projected headcount will be about 1,750 lawyers. They’ll have a global footprint spanning more than 20 offices, and an anticipated annual revenue surpassing $2.8 billion!

Strategic Complementarity and Market Positioning

Based on the 5 Pillars of a Successful Merger (I’ll be releasing the white paper with those, later this month), this merger is strategically sound.

McDermott has a strong brand and reputation in private equity, health care, tax, and litigation. These practice areas dovetail nicely with Schulte’s established brand in (again) private equity, investment management, and fund formation. High-end, complementary practice areas. Excellent opportunities for cross-selling.

Further, the hourly rates and compensation structures are in alignment, so there won’t be “Value Compression Issues” (rate-disparity) or “Salary Compression Issues” (neither side has partners that will be making multiples higher, than the other).

Finally, the combined brands of McDermott and Schulte will be powerful, indeed.

The firms appear to have addressed key operational and market considerations in forging this alliance. Everything I would advise a firm to examine, seems to have been closely scrutinized and analyzed with this one.

I predict this will be one of the most successful AmLaw mergers we’ve seen in some time.

We extend our regards to McDermott Will & Schulte as they start their new venture!

Frederick Shelton is a Market Advisor and Consultant to law firms, legal MSO's and funds on subjects which include legal AI, ABS models, MSO's and M&A. He can be reached at fs@sheltonsteele.com