In the legal sector it’s very common for two law firms to join forces – also known as a law firm merger. Law mergers happen all over the world, sometimes internationally, to create bigger companies with a wider geographical reach. Sometimes a merger means both of the separate companies can better serve their clients by amalgamating with one another. However, two companies becoming one is a complicated process and mergers require an elaborate strategy.
With mergers taking up so much time and planning, one may wonder why law companies go to all the effort. The fact is in the competitive global market, bigger firms fare better and there’s a host of other benefits to merging. Let’s take a look at some of the biggest advantages of law firm mergers.
Expand practice areas
A major factor which encourages law firms to integrate is the fact that there will be more lawyers and diverse legal specialists within the company. Firms will be able to offer clients more practice areas as a result of merging, meaning a wider breadth of service and a potential to increase revenue. Both companies will work together to better serve their clients in a range of specialist areas.
Bigger, better brand
When two companies combine, they instantly multiply their selling power. Two medium sized law firms may be getting by just fine, but once they join forces they can create a super brand which is bigger and better. A law firm merger creates a steadfast company with an established brand; a go-to organisation for hundreds of clients.
Cover a wider area
It can be difficult for law firms to push growth across a wide geographical area. Especially in large countries such as the USA, or companies trying to expand into foreign markets, the only way is to set up brand new offices in new locations. Imagine how easier it would be if there was already an established law office there. The problem is it belongs to another company – a company with years of experience in that area. A law firm merger makes total sense to allow the companies to serve clients in a number of locations, as it is often unsuitable to inject capital into new offices.
Beat the competition
If a law firm finds that there are many similar boutique law firms in the area, and clients may be going elsewhere, it’s time for a change. Often a merger makes sense because the company can beat the competition by joining up with a bigger company, and reap the benefits of being a larger legal organisation.
Want to find out more about the benefits of legal mergers? Get in touch with the Crasner Consulting team today.