Stroock & Stroock & Lavan, a New York-founded law firm, and Nixon Peabody, a Boston-founded firm, have officially called off their negotiations regarding a proposed merger. A spokesperson from Stroock confirmed this decision in a statement released on Friday. The spokesperson emphasized that although both firms have immense respect for each other’s contributions to the legal marketplace, they have mutually agreed that further talks would not serve the best interests of either party.
It should be noted that Stroock‘s discussions with Nixon Peabody were never exclusive, and the firm has been actively engaging in talks with other potential merger partners. The spokesperson expressed optimism about the progress being made in these ongoing discussions with other firms. Similarly, a spokesperson from Nixon Peabody acknowledged that the firm regularly engages in discussions with other law firms to explore professional opportunities and areas of mutual interest.
The decision to end the merger talks comes amid a series of partner departures from Stroock in various cities and practice groups over the past few months. These departures occurred even after the initial reports of the merger talks with Nixon Peabody emerged in May. Sources familiar with the matter revealed that Stroock’s leadership had previously rejected a deal offer from Nixon Peabody just last month.
Reports suggest that Stroock has been exploring potential mergers with several other firms since at least last year. In March 2022, a group of 43 restructuring lawyers left Stroock to join rival firm Paul Hastings, which accounted for approximately 29% of Stroock’s revenue in 2021. However, Stroock swiftly responded by adding a team of six lawyers from a small restructuring and bankruptcy firm a few months later.
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In terms of financials, Stroock reportedly generated around $250 million in gross revenue in 2022, while Nixon Peabody recorded approximately $584 million during the same period, according to figures reported by The American Lawyer. Stroock’s website states that it currently has a roster of over 200 lawyers, significantly fewer than the 600+ lawyers employed by Nixon Peabody.
The news of the termination of merger talks between Stroock and Nixon Peabody was initially reported by The American Lawyer on Friday. While this particular negotiation may have ended, both firms remain committed to exploring opportunities and potential collaborations within the legal industry.
Stroock & Stroock & Lavan and Nixon Peabody have decided to cease discussions regarding a proposed merger. Despite their mutual respect, both firms have determined that pursuing the merger further is not in their best interests. Stroock continues to talk with other potential merger partners, and the firm remains optimistic about the progress. The legal industry will continue to observe how these developments shape the future trajectory of both Stroock and Nixon Peabody.
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