Law Firms are notorious for constantly seeking out mergers, acquisitions, and various other expansion and contractions. 2008 was like many years, where the effects of mergers of previous years had a direct effect on the profitability of firms. One would expect that a merger would result in busier associates, and more profit coming in, but that is not always the case.

Take for example the Thelen, Martin, Johnson & Bridges + Reid & Priest merger of July 1998. Both fairly reputable firms, having experience in profitable ventures decide to team up. From the outset one would likely expect immediate or at least quick success. The current Co-Chair Stephen O’Neal said about the project that “It was definitely a seminal event for our careers and the history of the firm.” Considering the fact that the firms were on opposite sides of the US, it was a definite benchmark as far as mergers go.

For many years after the merger was put into action, the new firm faced some fairly harsh criticism for its lack of expansion into new areas. This is typical of many mergers between law firms, where it takes time for the different cultures to congeal into a more efficient mechanism. However, things still don’t seem to be going that well for Thelen. In 2006 they merged again, with New York’s Brown Raysman Millstein Felder & Steiner, in an effort to capitalize on practice beyond their previous scope. In addition to this, they expanded internationally, expecting to find growth in other markets. However, it appears more restructuring is in order since this spring they had a fairly large layoff of 100 associates.

While it’s true that more often than not, properly executed mergers do result in higher profits, it’s not always the case and sometimes the market will shoot down even the best of intentions. The number of firms which benefited from mergers this year is fairly staggering, and overall growth of the AmLaw’s top 100 firm’s profits is something you can take to the bank.

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