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The new year is set to bring transformative changes to the U.S. legal landscape as several high-profile law firm mergers take effect. These consolidations highlight a trend of increasing alignment and growth among firms, aimed at expanding capabilities and meeting evolving client demands.
Troutman Pepper Locke: A New Giant Emerges
On January 1, Troutman Pepper Hamilton Sanders and Locke Lord will officially merge to form Troutman Pepper Locke. The combined firm will house 1,600 attorneys across 35 offices, cementing its position as a significant player in the industry.
In 2023, Troutman Pepper reported approximately $1.08 billion in gross revenue, while Locke Lord generated $497.6 million. The merger represents a substantial consolidation of resources and expertise, enabling the new entity to better serve a diverse client base.
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Womble Bond Dickinson Expands Westward
Womble Bond Dickinson, a firm with nearly 1,100 lawyers, will join forces with Lewis Roca Rothgerber Christie, a Phoenix-based firm with 220 attorneys. Retaining the Womble name, the combined firm projects annual gross revenues exceeding $742 million. This merger strengthens Womble’s foothold in the western United States and enhances its capabilities across multiple practice areas.
Taft Stettinius & Hollister Partners with Sherman & Howard
Cincinnati-founded Taft Stettinius & Hollister is set to merge with Denver-based Sherman & Howard. The merger will result in a firm with over 1,000 attorneys and projected revenues of $810 million for 2024. This strategic alliance bolsters Taft’s geographic reach and solidifies its position as a leading regional powerhouse.
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Ballard Spahr and Lane Powell Unite
Philadelphia’s Ballard Spahr and Seattle’s Lane Powell will combine to create a firm operating under the Ballard Spahr name. The merger will bring together 750 lawyers across 18 U.S. offices, enhancing the combined firm’s ability to serve clients coast to coast.
Industry Trends and Drivers of Consolidation
According to Fairfax Associates, 41 law firm mergers were completed in the first nine months of 2024, consistent with the previous year. The consultancy expects 2025 to see similar activity levels, driven by several factors:
- Client Preferences: Clients are increasingly favoring larger firms capable of offering broader services and global reach. Law firm consultant Bruce MacEwen notes a trend of companies “migrating towards shorter preferred provider lists.”
- Expense Pressures: Rising attorney salaries and investments in generative artificial intelligence technology are compelling firms to pool resources and achieve economies of scale.
- Strategic Growth: Midsize and smaller firms see mergers as a way to accelerate growth, gain market share, and expand geographically.
A Global Perspective: U.K. Firms Enter the U.S. Market
International firms are also making significant inroads into the U.S. market. Earlier this year, London-based Allen & Overy merged with New York’s Shearman & Sterling, forming A&O Shearman. This transatlantic merger has created a formidable presence spanning Europe and the Americas.
In November, Kramer Levin Naftalis & Frankel announced plans to merge with global giant Herbert Smith Freehills. The resulting firm will operate as Herbert Smith Freehills Kramer globally and HSF Kramer in the United States. With over 2,700 lawyers, the merger is expected to be finalized following partnership votes in mid-February. Meanwhile, more than 50 attorneys from Kramer Levin’s Paris office will transition to Morgan, Lewis & Bockius starting January 1.
Outlook for 2025 and Beyond
While the legal market’s top 50 highest-grossing firms continue to focus on organic growth through strategic hires and promotions, the broader industry is embracing consolidation as a key strategy. Mergers offer a path for firms to enhance their service offerings, expand client bases, and tackle mounting financial pressures.
As the new year begins, the legal sector braces for further evolution, with clients and firms alike poised to reap the benefits of these transformative partnerships.
