At least six combinations involving Am Law 100 law firms became effective this month. Now these firms are focused on growing market share from their combination while integrating their leadership, compensation systems and offices.
The early goings of a merger are some of the most volatile and critical to a combination’s success.
“The first few months of a large merger are defined by change,” said Fairfax Associates consultant Lisa Smith. “For many, this can be exciting, for others it is unsettling. Firm leaders need to be out talking to people every day to keep the focus on the business case and opportunities that come from the merger, rather than changes to timekeeping systems or other administrative changes.”
The Am Law 100 combinations now effective include Troutman Pepper Hamilton Sanders and Dallas-based Locke Lord; Womble Bond Dickinson with Phoenix-based Lewis Roca Rothgerber Christie; Ogletree Deakins with Baltimore’s Shawe Rosenthal; Taft Stettinius & Hollister with Denver-based Sherman & Howard; and Ballard Spahr with Seattle-based Lane Powell. Meanwhile, Mayer Brown’s Paris team, on Jan. 1, combined with a seven-partner transactional team of about 30 lawyers from French firm Ayache Avocats.
Leaders of several of these firms spoke about the integration process in the months ahead.
“It’s a lot of everything all at once,” said legacy Troutman Pepper Chair Tom Cole.
In a combined interview in late December, Cole and Locke Lord Chair David Taylor also spoke about key parts of their integration process, including technology, infrastructure and leadership. That’s on top of a fourth-quarter collection spree to end the year strong.
Troutman Pepper and Locke Lord’s merger creates a $1.5 billion firm that is expected to rank among the top 30 largest U.S. law firms. Troutman Pepper currently ranks No. 51 in the Am Law 100, while Locke Lord takes the 97th spot.
Similarities between Troutman Pepper’s and Locke Lord’s compensation systems were considered a “pro” while the two firms were considering merging, the firm leaders said.
They declined to outline specifics of the partner compensation structure, but said they generally expect to see continuity there. “Our systems reward the same things,” Cole said, adding that the firm “can say loudly [its compensation system] is not formula-based.”
“The right folks will get rewarded how they have in the past, and we look forward to working together,” Cole said.
“Just the approach and timing of it, such as if a firm does it in July versus January or February, that’s a hurdle you have to get over,” Taylor said, but adding, “the process and timing is very similar. All of those things are consistent with the way the Locke Lord partners have gone through with partner compensation over the last 20 years.”
Cole will serve as chair of the combined firm, with Taylor taking up a vice chair position alongside current Troutman Pepper vice chair Ashley Taylor. Amie Colby, also of legacy Troutman Pepper, will serve as managing partner.
Troutman Pepper alumni make up the bulk of the new firm’s practice leaders, helming the energy, health care and life sciences, litigation, real estate and transactional practices. The financial services and insurance and intellectual property groups will be led by Locke Lord attorneys.
Making the Business Case
The combined firms are now focused on expanding market share through collaboration. Merrick Benn, chair and CEO of Womble Bond in the U.S., said after the Lewis Roca merger, one of the prime goals is seeing client opportunities.
“Our focus at the onset is on cultivating relationships among attorneys and facilitating knowledge sharing and collaboration on client matters and new business opportunities,” he said in a statement, adding the firm, over the years, has “been very strategic and diligent about building channels and mechanisms to heighten” attorney collaboration.
“We see significant opportunities ahead as a combined firm in the new year,” he said, adding the new firm offers “local knowledge, global reach, deep bench strength, and breadth in areas that span IP, litigation and transactions, while offering rate flexibility and a first-rate culture.”
‘Face-to-Face’ Meetings
The leaders of merged firms also stressed the importance of physically working together in the days and months ahead to make the merger work.
Ballard Spahr Chair Peter Michaud said after announcing the combination with Lane Powell in 2024 that the leaders of legal teams have been meeting with new colleagues and determining where and how they can best deploy the right resources.
“Every single person coming to the firm—lawyers and business professionals alike—has a counterpart who is already with Ballard, so that person can have a go-to source to help them get acclimated. We have programming, like workshops and additional training, planned to help everyone deliver their best possible work product and client service,” he said in an email, adding the firm’s annual meeting in January and seminar in May will provide more “face-to-face interaction, which I do think is essential.”
Speaking on new business opportunities, Barbara Duffy, who served as Lane Powell’s president, said it’s “going to be great to be in new markets,” with the firm expanding existing relationships and bringing in new clients. “The enhanced practice range and experience depth of our combined firm will really yield dividends,” she said.
Business Development
Some of the work also involves marketing the new firm, internally and externally.
Stefan Stein, former Sherman & Howard CEO, who is now Taft Mountain West chair and Colorado partner-in-charge, said the first few months of the merger will entail “promoting the combination to our clients, potential clients, and communities, and integrating our practice areas and systems.”
He also praised the merger for the benefits in depth and breadth to serve existing and new clients. “There will be some challenges in integrating our systems, which have largely been resolved over the past several months leading up to the completion of the merger, but we have outstanding senior management and staff who have helped and will continue to help us navigate these challenges.”
Consolidation
Some Am Law 100 firms with Jan. 1 mergers have overlapping offices, leading to some office consolidation.
For instance, Locke Lord and Troutman Pepper have seven overlapping locations, including Atlanta, Boston, Chicago, Los Angeles, New York, San Francisco, and Washington, D.C. According to Cole and Taylor, offices in all seven cities will be consolidated with each other on a rolling basis depending on when leases end.
In Boston and Chicago, Cole said, those from legacy Troutman Pepper will move into Locke Lord’s offices, while “size difference dictated consolidation on the Troutman Pepper side” in the remaining cities.
The firms’ Atlanta offices will be the first to consolidate, at the end of January, according to an earlier interview with Troutman Pepper office managing partner Charlie Peeler.
“You have to be respectful of everyone going through the change. Lawyers aren’t exactly change agents, and managing them through that is challenging,” Cole said in general about the integration process.
Taylor spotlighted Locke Lord’s patchwork of nine combinations over the past 35 years. “A lot of people have been through this before. … You have to identify the structure, then put the meat on the bone with people and then work through the issues,” he added.
While Troutman Pepper Locke has officially launched into the legal market, the work has just begun.
“We went through the normal budgeting process separately and together for 2025. … We’re cautiously optimistic about 2025,” Cole said. “Neither of us budgeted terribly aggressively. … We’re excited about all we can do together.”
Jon Campisi and Tom Spigolon contributed to this report.
