MERGER MAYHEM

Mergers have played havoc with partnership prospects in the past three years, with a swathe of firms amalgamating. Richards Butler’s merger with Reed Smith, which went live on 1 January 2007, was the largest tie-up and is already bearing fruit for Richards Butler’s associates. Following a tough few years for associates at the UK firm, Richards Butler promoted seven to its partnership in 2006-07, four upon completion of the merger. This follows the strong lead set by the firm’s new bedmate Reed Smith, which has seen a steady flow of UK promotions in the past three years.

Hill Dickinson’s reunification with Hill Taylor Dickinson at the end of 2006 is also likely to prove positive for the combined firm’s associates following an eightfold increase in partnership promotions in 2006-07.

But for other firms in the UK 100, mergers are more likely to impinge on internal promotions, skewing the ratio of promotions to lateral hires. Halliwells, for example, grew its partnership by 29 partners through its 2005-06 tie-up with James Chapman & Co.

That financial year laterals were more than double internal promotions, despite the firm’s traditional focus on homegrown talent. The firm has endeavoured to make up for this, promoting 18 to the partnership in 2006-07 compared with two laterals.

Cobbetts has similarly grown its partnership considerably in the past three years, with three mergers accounting for 31 lateral hires in 2006-07. But this rapid expansion had the knock-on effect of stalling internal partnership promotions in 2006-07 as the firm focuses on the inevitable bedding down of its new recruits.

Blake Lapthorn Tarlo Lyons has similarly halted internal promotions following the September 2006 merger of Blake Lapthorn Linnell and Tarlo Lyons and the earlier February 2006 merger with 14-partner private client outfit White & Bowker. But the combined firm is vocal that this will change, particularly for associates within its growing London presence.

Associates at Irwin Mitchell met the same fate. None were made up in 2006-07 after its merger with niche personal injury firm Alexander Harris in May 2006.

DWF, meanwhile, has increased its lateral hiring strategy as the result of the losses of several unhappy partners following its January 2007 merger with Ricksons.

Expect associates to also vote with their feet after just seven were made up to the partnership in 2006-07, compared with 43 lateral hires – although 40 of those were from Ricksons.