Chicago M&A Market Forum

[Anonymous User]

I have heard that there is a fairly small M&A market in Chicago. Does anyone know if there means there are, say, 10 law firms that are active in the market? Or is it like 20 or 30? And does anyone know which firms they are?

[thesealocust]

It's probably just Kirkland. Chicago's economy is a pack of lies the living impose upon the dead.

[Anonymous User]

Of course, Kirkland is probably running these deals against themselves. Thanks for your worthless answer.

[imchuckbass58]

It really depends what you mean by "Chicago M&A market." Really, for large scale transactions, the M&A market is national, and the bulk of that work is done by NYC firms. For example, when Walgreen (based near Chicago) bought Duane Reade, it was represented by Wachtell. Similarly, when United (based in Chicago) merged with Continental, it was represented by Cravath. Of Chicago-based firms, Kirkland is probably the only one that can lay a legitimate claim to being a big player in the large-scale national M&A market, and even then, it's mostly in a private equity context. It's dominated by New York firms - S&C, Wachtell, Skadden, etc. (though, for example, the Chicago office of Skadden might have a big role on a deal for a Chicago-based buyer).

If, however, you're talking about more moderate-sized transactions, where a buyer / target is more likely to use Chicago-based counsel, the universe is bigger. Kirkland probably still leads the back, but Sidley is probably up there as well. You also have to take into account the Chicago offices of national firms like Skadden. Even though Jones Day isn't huge in Chicago, it does a lot of mid-market M&A in the midwest, so it's probably in there somewhere as well. Firms such as MWE, Mayer Brown and Winston also do some of this, but much less than the previously-mentioned firms.

[Anonymous User]

Of course, Kirkland is probably running these deals against themselves. Thanks for your worthless answer.

This is actually often the case. If the client consents to the screening procedures, different Kirkland teams will represent buyer and seller.

[Anonymous User]

Similarly, when United (based in Chicago) merged with Continental, it was represented by Cravath.

Kind of a bad example, as Continental was repped by Jones Day...

Also, on the Walgreens deal, Paul Weiss repped target. Yes, it's an NYC firm by your post, but
hardly a major player on the M&A scene.

[alabamabound]

It really depends what you mean by "Chicago M&A market." Really, for large scale transactions, the M&A market is national, and the bulk of that work is done by NYC firms. For example, when Walgreen (based near Chicago) bought Duane Reade, it was represented by Wachtell. Similarly, when United (based in Chicago) merged with Continental, it was represented by Cravath. Of Chicago-based firms, Kirkland is probably the only one that can lay a legitimate claim to being a big player in the large-scale national M&A market, and even then, it's mostly in a private equity context. It's dominated by New York firms - S&C, Wachtell, Skadden, etc. (though, for example, the Chicago office of Skadden might have a big role on a deal for a Chicago-based buyer).

If, however, you're talking about more moderate-sized transactions, where a buyer / target is more likely to use Chicago-based counsel, the universe is bigger. Kirkland probably still leads the back, but Sidley is probably up there as well. You also have to take into account the Chicago offices of national firms like Skadden. Even though Jones Day isn't huge in Chicago, it does a lot of mid-market M&A in the midwest, so it's probably in there somewhere as well. Firms such as MWE, Mayer Brown and Winston also do some of this, but much less than the previously-mentioned firms.

If you want to do M&A and work in Chicago, the firms you should be focusing on are K&E, Sidley, Skadden and Latham. Possibly also Mayer, Jones Day, MWE & Ropes (which has a small SA class size). Potentially Winston, though there are reasons to be hesitant about summering there. Even if there weren't, my sense is they do a lot more cap mkts than M&A. They also lean more to the lit side overall.

Not really disagreeing explicitly with anything quoted above. Just trying to give a less NYC-skewed perspective. Even among NYC snobs (I know plenty and am a recovering one myself), you'll generally hear a consensus that, at the very least, K&E, Sidley and Skadden (Chi) have thriving M&A shops and some very big-name clients.