Are mega-mergers offering value to clients?
The increasing number of ‘mega-mergers’ between law firms that are already very large, is being treated with a measure of skepticism by GCs from the Fortune 100, according to a recent Wall Street Journal report.comments powered by Disqus
The logic behind the mergers dictates that larger firms can increase revenue and offer savings on expenses. But many general counsel say that they hire lawyers on the basis of the individual reputation of a specific lawyer, rather than focussing on the law firm brand, and they are not sure what these mergers really offer to clients.
According to a recent survey by Huron Legal, general counsel consider subject matter expertise first when deciding which firm to hire, and size is the least of all the listed matters taken into account.
Joy Saphla, managing director and Huron Legal’s Advisory services leader, said: “The industry has experienced profound change and the stakes are exceptionally high for law departments. Law departments must continuously demonstrate their value while at the same time controlling or lowering costs.