A GC's View on Mergers
With the recent announcement of the Gardner Carton/Drinker Biddle merger, the Wired GC offers some additional commentary on the recent string of law firm mergers, which Legal Blog Watch covered just two weeks ago. Wired GC questioned Gardner Carton's reason for the merger, which is to achieve new growth for the firm. But Wired GC doesn't view mergers as a way to achieve growth, at least not in the short term. He writes:
Merger = growth? In my book, no.
A law firm merger can lead to growth, but in the short term it likely leads to some retrenchment due to conflicts or partners who are now tempted to take a headhunter’s call.And then there is the post-merger reality common in the corporate world, but rarely mentioned in the legal press: restructuring.
Wired GC doesn't oppose mergers, however. Rather, he agrees with Drinker Biddle's reasons for the merger: to allow the firm to provide legal services more efficiently. It's efficiency, not law firm growth, that in the end will give clients a reason to celebrate.
Posted by Carolyn Elefant on November 17, 2006 at 07:50 PM | Permalink
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