The new year is set to bring a wave of significant law firm mergers across the United States, driving further consolidation in the legal industry. These strategic combinations reflect shifting client demands, market pressures, and a push for broader capabilities.
High-Profile U.S. Mergers
On January 1, several major law firm mergers will take effect, creating some of the largest and most influential firms in the country:
- Troutman Pepper Hamilton Sanders and Locke Lord will merge to form Troutman Pepper Locke, a firm with 1,600 attorneys across 35 offices. The combined firm will boast a 2023 revenue of approximately $1.58 billion, based on reported figures.
- Womble Bond Dickinson and Lewis Roca Rothgerber Christie will unite under the Womble name, creating a 1,300-lawyer firm with over $742 million in annual revenue.
- Taft Stettinius & Hollister will absorb Denver-based Sherman & Howard, forming a firm with more than 1,000 lawyers and projected 2024 revenues of $810 million.
- Ballard Spahr will join forces with Lane Powell, establishing an 18-office firm with 750 attorneys operating under the Ballard Spahr name.
These mergers reflect a broader industry trend toward consolidation, with 41 law firm combinations already completed in 2024, according to Fairfax Associates.
Industry Trends Driving Consolidation
Several factors are fueling this wave of mergers. Companies increasingly prefer larger firms with expansive capabilities, often selecting from shorter “preferred provider” lists, according to Bruce MacEwen of Adam Smith Esq. Mid-sized and smaller firms see mergers as an opportunity to fast-track growth, access new clients, and expand geographically, as noted by a client advisory from Citi Global Wealth at Work Law Firm Group and Hildebrandt Consulting.
At the same time, expense pressures, including rising salaries and the cost of implementing generative artificial intelligence, are pushing firms toward consolidation to achieve economies of scale.
Transatlantic and Global Mergers
U.K. law firms continue to expand their presence in the U.S. through mergers. In a landmark transatlantic deal, Allen & Overy merged with New York’s Shearman & Sterling earlier this year, creating A&O Shearman.
Additionally, Kramer Levin Naftalis & Frankel and Herbert Smith Freehills announced plans to merge in November, forming a global firm with more than 2,700 lawyers. The new entity will operate as Herbert Smith Freehills Kramer globally and as HSF Kramer in the U.S., pending partnership votes in February 2025.
Notably, 50 lawyers from Kramer Levin’s Paris office, which is not part of the merger, will join Morgan, Lewis & Bockius on January 1, marking another notable shift in the legal landscape.
Future Outlook
While mergers offer growth opportunities for many firms, the most profitable law firms—particularly the top 50 by gross revenue—may prioritize strategic hires and promotions over mergers, analysts predict. These firms continue to outperform other market segments, reducing their reliance on consolidation.
As 2025 unfolds, the legal industry’s landscape will likely continue evolving, shaped by client needs, financial pressures, and the transformative potential of technology.
