Alan Hodgart's consultancy H4 is merging with Julia Chain's consultancy Kite Partnership as Hodgart prepares to take advantage of the Legal Services Act.
The merged entity, which will trade initially under the name 'H4 Including the Kite Consultancy', will offer in-house and private practice consultancy services with a combined 11 consultants.
Hodgart said: "With the Legal Services Act coming in we're going to need more resources. Everyone's realising that everyone can benefit from the act.
"Most firms are going to have to get outside investment. And most companies aren't going to invest in firms as they're managed today. Changing governance structures and compensation models are big issues, but partners are going to have to get their heads around these facts."
At Kite, former T-Mobile general counsel Chain has focused on in-house consultancy, but also offers training for private practice lawyers.