5/1/2023 0 Comments Sedgewick merge vs mergexReflect on the fact that the biggest law firms typically charge more. Small firms, with relatively low rent office space, and modest aspirations. Insurer, reflect on where you get the cheapest rates - Plexus, Keoghs, BLM. I wouldn't expect many Senior Associates from the BLM side to get promoted in the next 5 years post acquisition. On a cultural level, there's likely to be a divide and prejudice surrounding quality of lawyers. It will also be good for BLM Associates, who if they aren't culled, will have access to higher rates and better salaries if they make it to Partner.Įxpect a number of boutiques to spin off in the next 12 months. This will however be good for Clyde's, who no doubt have run the numbers and can acquire and eliminate a competitor, and can then begin raising the BLM panel rates through their "enhanced offering". Many BLM Partners will be put on the lower Salaried Partner rung (about £170k and will remain there forever. I know Clyde's Partners billing £1.5m plus a year who aren't in the equity yet. There is of course more nuance than just headline PEP figures, but I cant see how any of the equity Partners at BLM will transition to the Clyde's equity. It remains to be seen whether Clydes is full for now, or gets peckish again soon. Since then it has hoovered up various smaller firms: Simpson & Marwick (2015), Lee & Lyons (2016), Sedgwick (2018) and SHK Law Corporation (2021). The Clydes spokesman added: "But it’s important to stress that this merger is based on our shared ambitions to be the market leading provider of legal services in this space and our focus as we integrate will be on ensuring we have the scale, service offering, technology and delivery processes to meet the needs of our clients now and in the future.”Ĭlyde & Co's last major takeover was Barlow Lyde & Gilbert in 2011, when it created a firm with a total headcount of around 2,250 staff. We realise that as well as being an exciting time for both firms, change like this can also be unsettling." A BLM spokeswoman replied: "I can confirm that BLM employees will become part of Clyde & Co on 1 July." A Clyde & Co spokesman responded: “At this early stage of the integration process we are reviewing how to best combine the two businesses, and will be able to provide further detail in due course. RollOnFriday asked Clyde & Co and BLM if either firm anticipated having to make redundancies due to the combination, or whether all staff would join the new entity. This merger is one of aligned approaches and values, offering huge benefits to our clients in the areas that matter most." Matthew Harrington, BLM Senior Partner, said: “We are looking forward to the opportunities combining both firms will bring for our people and our clients. BLM has highly talented people and outstanding client relationships and we are excited by the potential of this combination” "At Clyde & Co we are always focused on growing and developing our offering for the good of our clients and our people and this merger does exactly that. “We are delighted the merger has secured approval from both sets of partners," said Clyde & Co’s Senior Partner Carolena Gordon. Meanwhile, having been accused of abandoning its trainees, and slashing business support roles during the pandemic, BLM may have concluded that it was time to hook up with a bigger firm.Ī Clyde & Co statement extolled the virtue of the takeover merger, stating that the addition of BLM will take Clyde & Co to a global revenue of over £700m per annum, a headcount of over 5,000, with offices in over 60 cities worldwide. It should be great news for Clydes which picks up some more clients (particularly for casualty insurance work) and doesn't even dent the brand. BLM’s strengths are its people and this is what our clients see they will merge with Clyde & Co colleagues to strengthen the offering of the newly merged firm.” “Clyde & Co is a much larger entity and has a strong global brand, one which we are proud to become part of," said a BLM spokeswoman. RollOnFriday asked BLM about its name being dropped. It follows several months of discussions, after RollOnFriday broke the news that the two firms were considering a combination. Although, given the rise and rise of the Black Lives Matter movement, BLM is probably desperate to ditch the letters, just to leave behind the client jokes. The new firm is to be called, erm, Clyde & Co, as BLM doesn't even get a place on the letterhead. Partners at Clyde & Co and BLM have voted for the two firms to merge in July.
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