A year of growth: Law firm mergers saw an increase in 2023

While overall M&A activity saw a decline in 2023, recent data suggest law firm mergers actually saw an increase last year.

Fairfax Associates tracked 48 completed mergers in 2023 — a slight increase compared to the year prior, which saw 46 completions. Cross-border mergers also rose from two to four, while domestic mergers stayed at 44.

One large firm — defined as having at least 100 attorneys — combination the report highlighted was that of Ulmer & Berne LLP in Cleveland and Greensfelder Hemker & Gale P.C. in St. Louis. Effective Feb. 1, the two firms will operate as a “super-regional” Midwestern firm under the name UB Greensfelder LLP.

“We are two overachieving firms with strong roots in the Midwest and visions for growth,” Scott Kadish, Ulmer’s managing partner, said in a news release. “After we were both recognized as ‘punching above our weight’, we began discussions.

“As we talked, it became clear that this was an opportunity to bring together two like-minded firms with complementary practices and geographic footprints, and similar operations and cultures,” Kadish said. “That shared vision included the desire to expand in our core Midwest markets while maintaining our cultures and foundational values.”

While the firm will not have Indiana offices, there will be multiple locations in Illinois and Ohio.

The firm’s largest offices by attorney headcount will be in St. Louis, with more than 100 lawyers, Cleveland, with about 75 lawyers, and Chicago and Cincinnati, with about 30 lawyers at each office.

“We have the luxury of combining, not because we have to, but because we recognize this combination as an opportunity to strengthen both firms,” Kevin McLaughlin, Greensfelder president and CEO, said in a statement. “Each firm came to the table from a position of financial strength, and our practice mix and industry expertise will be significantly deeper and broader than either firm currently has. This will enable us to better serve our existing clients and position us to compete for additional work from new clients.”

Expanded capacity

Also in the Midwest, Indiana firms reported multiple combinations in 2023.

That includes Church Church Hittle + Antrim, which merged with Burrus & Sease in June, creating a stronger connection to Zionsville.

Beth Sease described the combination as exceeding expectations.

“We’ve been that small practice in a local community, and that hasn’t had to change,” Sease said of Burrus & Sease. “We’re still that small, local office. But we have all these expanded tentacles now that can really involve a lot of other great talented attorneys.”

She added that the reason she and Roger Burrus decided to merge with CCHA was to get extra support, and because they were thinking about their succession plans.

Sease admitted that clients were initially a little concerned that they would lose the firm’s personal touch, or that fees might change.

But according to her, “It’s only expanded, and we’ve been able to do the same thing with the same cost as before, just maybe a little quicker now that we have more people to help us. So the feedback has been good.”

She said she and her original team want to continue embracing the expanded capacity CCHA has available in terms of technology and expertise.

The timing also couldn’t have been better, she said.

“We are able to address legal needs without having to leave our community, so that that’s been great,” she said.

Douglas Church agreed with Sease that the process of combining the two firms has been smooth. He added that CCHA is typically selective about who is brought into the firm, but Burrus and Sease fit the culture perfectly.

“They’re committed to their community. They have an active presence in the community. They support community activities. They’re client-focused. So, all of those things just really made the partnership a simple, straightforward thing,” Church said.

Integration and growth

Another Hoosier combination completed in 2023 was between Lewis Wagner LLP and Hewitt Law & Mediation.

The two firms combined last March as a way to boost their probate practices — and they’ve done just that, according to Lewis Wagner managing partner Richard Blaiklock.

“We’ve identified, at least for firms our size, that that’s a practice that we think will continue to grow,” Blaiklock said.

At Lewis Wagner, Blaiklock said 2023 really focused on integration, while 2024 will be focused on growth.

Meanwhile at Dinsmore & Shohl LLP, Indianapolis office managing partner Misha Rabinowitch said that since the firm arrived in Indianapolis in 2021 through its merger with Wooden McLaughlin LLP, it has since expanded in other states. Last January, for example, the firm merged with a firm in San Diego.

“Locally, the combination has permitted us to provide a broader range of service to our clients to attract new clients that we would not have been able to attract as a local Indianapolis without the breadth that Dinsmore has,” Rabinowitch, who was a partner at Wooden McLaughlin, said.

He added that they’ve been able to be more competitive when it comes to hiring, including matching larger firm compensation.

“We were looking for a cultural fit because we enjoyed the culture that we had with the smaller firm, and the model has permitted us to maintain a great culture that we had but received the benefit as a part of the larger firm,” Rabinowitch said. “We still feel like we know each other, we trust each other, we work collaboratively with all the lawyers, moreso, I think, for all those reasons. It’s been a successful combination.”

Looking toward the future, he said the goals are to continue to build out their office by adding practice areas they don’t currently have, or adding more depth in their existing practice areas.•