Summary: Crowell & Moring and Herrick Feinstein have entered into discussions about merging the two firms into a larger Am Law 100 firm.
Crowell & Moring is currently in close merger discussions with Herrick Feinstein with a term sheet close to being signed. The Washington-based Crowell, which is roughly three times as large as Herrick, is known for work in government contracting. Herrick, a midsized New York-based firm, has a strong presence in the real estate, art, and sports law litigation practices.
A merger is unlikely to come this this year with the talks still in the preliminary stages for the past few months. Should they join forces, the new firm would have around 570 lawyers and $478 million in gross revenue. Crowell is currently ranked 88th in the Am Law 100 firms but a merger with Herrick would allow them to jump up about 20 spots.
Crowell has 440 lawyers and $363 million in revenue last year. Herrick is an Am Law 200 firm with 132 lawyers and $115.5 million in revenue.
If the firms should merge, it would be another example of larger firms merging with smaller firms in order to minimize costs and meet demand. Washington D.C. Arnold & Porter announced their merger with Kaye Scholer, a prominent but smaller firm in New York.
Crowell has been looking for several years to find a good fit for them to merge with. They initially were discussing the potential for a merge with the much smaller firm Satterlee Stephens last year. Herrick has been approached before but never taken the bite until now. They have the New York presence that many large firms are eager to have.
Herrick has also taken a strict approach to their finances after they dropped in 2013 and 2014. They are subletting a floor in a Manhattan office, consolidated their New Jersey offices, and eliminated nonessential staff through attrition. Their revenue jumped by 9.5 percent last year in part because of these efforts.
How do you think Crowell and Herrick merging will affect the market? Tell us in the comments below.
To learn more about other law firms that have announced or completed merges recently, read these articles:
- Eversheds and Sutherland Asbill & Brennan Discuss Merger
- Kaye Scholer and Arnold & Porter Announce Merger
- Husch Blackwell Merges with Milwaukee Firm
Photo: wikipedia.org