A&O Shearman Forum

[cfcm]

“Magic circle” law firm Allen & Overy is merging with New York’s Shearman & Sterling to form a practice with combined revenues of about $3.4bn, in one of the biggest transatlantic legal tie-ups in history.

The merger, which is subject to a vote of both firms’ partners, will create one of the largest law firms in the world by fee income and comes just months after 150-year-old Shearman abandoned merger talks with Hogan Lovells.

Allen Overy Shearman Sterling, as the newly combined firm is to be known, will have nearly 4,000 lawyers spread across 49 offices.

The proposed deal represents the first merger between a London-based magic circle firm and an American rival since Clifford Chance joined up with Rogers & Wells in 2000. It is also a big step forward in Allen & Overy’s bid to conquer the lucrative US market following the collapse of its attempt to merge with Californian firm O’Melveny & Myers four years ago, after the two sides failed to agree on a valuation.

https://www.ft.com/content/38ef46af-7fd ... 6e76e42f96

[throwawayt14]

“Magic circle” law firm Allen & Overy is merging with New York’s Shearman & Sterling to form a practice with combined revenues of about $3.4bn, in one of the biggest transatlantic legal tie-ups in history.

The merger, which is subject to a vote of both firms’ partners, will create one of the largest law firms in the world by fee income and comes just months after 150-year-old Shearman abandoned merger talks with Hogan Lovells.

Allen Overy Shearman Sterling, as the newly combined firm is to be known, will have nearly 4,000 lawyers spread across 49 offices.

The proposed deal represents the first merger between a London-based magic circle firm and an American rival since Clifford Chance joined up with Rogers & Wells in 2000. It is also a big step forward in Allen & Overy’s bid to conquer the lucrative US market following the collapse of its attempt to merge with Californian firm O’Melveny & Myers four years ago, after the two sides failed to agree on a valuation.

https://www.ft.com/content/38ef46af-7fd ... 6e76e42f96

Less of a merger and more a total buyout. Wouldn't expect great things for Shearman employees.

[Anonymous User]

Agreed with above, will be interesting to see what shakes out here with existing Shearman folks. They have already have a few departures following the failed Hogans merger, and we might see more now given that this reads like a full buyout acquisition instead of a true merger. Probably a lot of other firms are putting out the feelers.

[Anonymous User]

Why so confident that it’s not a “merger”? Shearman is more profitable than A&O, is in a much more profitable market, has 1 billion in revenue compared to A&O’s 2 billion, and produces the revenue with far fewer staff. Also, this is not a stock merger. The partners both own their shares and produce revenue. So the most likely outcome is that those partners that have relatively higher profitability will fall into the most advantageous positions and those with the least profits will be jettisoned. The same would happen with cost centers. So, the likely outcome is that Shearman partners hit above their weight in the new firm but the firm may cut more expensive duplicative Shearman staff or staff attached to low profit partners.

[Bramwell]

In past law firm mergers has outside counsel been published? I thought it was interesting that STB and DPW publicly on this deal.

[charles117]

its definitely a mouthful

[Anonymous User]

In past law firm mergers has outside counsel been published? I thought it was interesting that STB and DPW publicly on this deal.

And Lazard as an investment banker. I think they've mainly been engaged for executive compensation/benefits advice, which is sensible - you don't want internal partners learning about rainmakers' non-competes and guarantees to stay.

Seems like this will be Shearman in the US and A&O everywhere else at first blush. Agree that it's largely an A&O takeover - but in NY I'd expect Shearman to remain dominant.

[Anonymous User]

A&O are aquiring plenty of toxic assets. They'd better do their due diligence.

Good timing for S&S, before falling out of the V50.

[Flywheel]

I really hope they call the new firm ALLEN SHEARMAN.