News US & The Americas Law firms Hammonds to seal transatlantic merger with Squire Sanders By Margaret Taylor 25 August 2010 17:00 17 December 2015 16:02 Sign in or register to continue reading. It's FREE Sign in Email Password Keep me logged in Forgot your password? Not registered? It's FREE! Register now Register with The Lawyer Anonymous 26 August 2010 at 09:40 Is this a wind up? Reply Link Anonymous 26 August 2010 at 09:47 Great move by Hammonds. Reply Link Anonymous 26 August 2010 at 10:00 Hammonds – how have you pulled this off! You do realise the yanks will eventually kick all the legacy London partners out and replace with utter tripe before packing the bags and buggering off! Reply Link Rhubarb & Custard 26 August 2010 at 10:58 From an outsider’s point of view this looks like a great deal that makes sense for both firms. They both get what they want. The only negative thing is the tedious carping that such deals inevitably generate from partners at rival firms. Reply Link Anonymous 26 August 2010 at 11:11 The minute Squire Sanders do their DD they will run for the hills. This is a sick firm in terminal decline. Reply Link Anonymous 26 August 2010 at 11:17 As an international firm it is going to struggle and the project smells of hubris and over-reaching on all sides. It will have lots of offices scattered across the planet with a small number of people sitting in each one of them outside of the larger offices in the UK and US. If you aspire to offer substantive global legal advice to a sophisticated multinational then you need to match that with the people on the ground. With combined revenues of barely £500m, this proposed firm is not going to have the scale and depth of capital and resources to compete. With a $200k difference in PEP and a 2:1 disparity in revenues between Hammonds and Squire Sanders a partner in Birmingham is going to be seriously questioning why this is the sensible thing to do. Reply Link Anonymous 26 August 2010 at 12:28 Stand up if you would rather merge with Halliwells! Oh no too late for that. Might just resign instead! Reply Link Sam Cam 26 August 2010 at 12:33 What else could Hammonds do anyway? This isn’t a good deal particularly but at it buys them a bit of time and Squire Sanders won’t bother trying to sort out Birmingham or Leeds as it’s too much hassle immediately. Well done Peter Crossley for making the most of a bad hand. Reply Link Parsley the Lion 26 August 2010 at 12:36 Not a merger. It’s SSD buying a UK firm a third of its size. Although the synergies on the Tallahassee-Dominican Republic-Leeds axis are of course not to be sniffed at. Reply Link Anonymous 26 August 2010 at 12:39 @ Anonymous (26-Aug-2010 11:17) – Of course the combined firm will still be sub-scale in the medium term, but that is hardly an argument against a merger. We are rapidly heading towards global law firms of the scale of the big accountancy firms, with $25 billion revenues. The firms which face the bleakest future are those which, for cultural and other reasons, are seemingly incapable of merging, such as Macfarlanes and Travers Smith. Reply Link Anonymous 26 August 2010 at 15:32 @ Anonymous | 26-Aug-2010 11:11 am Why are Hammonds to be considered as a ‘sick firm in terminal decline’? Would just like to know your reasons for this view! Reply Link Kaiser Soze 26 August 2010 at 15:45 Sorry but we are soooo not heading towards global law firms on the scale of the Big Four accountancy firms. Even basic maths shows this. The largest firm by revenue is Baker McKenzie at US$2.2bn. The global legal top 10 is worth just under US$18bn. PwC on its own is US$26.2bn. The tax practice of Ernst & Young on its own has revenues of US$5.8bn – that is more than the combined global revenues of Clifford Chance, Linklaters and Freshfields. There is a huge gulf in terms of size and also ability to invest. The drivers towards globalisation in the accounting business are very different to those in the legal profession. Reply Link Anonymous 26 August 2010 at 16:52 @ Kaiser Soze – And what percentage of the total global legal market do the ten largest law firms currently have? It is miniscule. In ten years’ time the biggest law firm will have revenues of well over $10 billion. Wait and see. Reply Link Anonymous 26 August 2010 at 17:40 With ever-decreasing performance, and increasing staff and cost cutting, the firm has been lurching from crisis to crisis since 2003/4- thank goodness for Halliwell’s well publicised problems, failing which Hammonds’ performance would have garnered more comments from the press. It’s clearly been trading on its late 1990’s image for the last ten years and no matter what the talented Peter Crossley does to put spin on results you simply can’t polish the proverbial turd. If the yanks don’t turn and run, then hang on to your hats and watch the “managed exits” and the overuse of the word: “platform”. The yanks are going to spot the skeletons in the cupboard – sorry; closet – pretty soon Reply Link Anonymous 27 August 2010 at 12:15 I couldn’t agree more with the previous post. What can Hammonds possibly offer Squire Sanders? A terrible London office, weak regional offices, a complete lack of notable partners and the inability to increase their revenues during the boom years! If Squire Sanders do (and god knows why they would) go through with the proposed merger they will soon come to realise that they are best off closing the UK practice down all together. Reply Link Lord Denning's clerk 27 August 2010 at 14:08 Dentons and Hammonds aren’t quite shining examples of firms doing deals from a position of strength. LOL @Anonymous | 26-Aug-2010 12:39 pm – are you really serious that MacFarlanes and Travers Smith are in a weak position? Reply Link Anonymous 2 September 2010 at 13:25 I’d agree with the “LOL” about Travers and Macfarlarlanes being in a weak position. They’re both shining examples of mid sized firms that punch well above their weight in market reputation, and certainly in the case of Macs are fearsomely good at managing quality and relationships. They’ve both been repeatedly tipped over many years for decline and fall which neither particularly shows any signs of doing. Hammonds management were once quoted (in this publication I believe) as aspiring to a reputation like Macfarlanes. And no I’m not a Macs partner/employee…… Reply Link Name Email Cancel reply Threaded commenting powered by interconnect/it code.