The Art of the Law Firm Merger

Merger mania was all the rage a few years ago. It was driven by economic recession in the belief that larger is better and when administrative costs rise you can make savings by getting into bed with someone else. Whether this works or ends in tears is another story. Are there are any economies of scale in the legal profession as everyone still wants their own Green Book? This book tells us that 'lawyers are polite, helpful and stimulating' and so we are, but lawyers are not good at being businessmen. The merged firm can end up with two receptionists glowering at each other or two trainees fighting over the two photocopiers, neither of which work (the photocopiers, that is).

If you are thinking of a merger, will this book help you? Anything that cuts costs is an option these days but will the merger turn into a takeover? And who will take over whom?

The style of this book will make many lawyers wince. 'I spend my time these days exclusively consulting to law firms,' the author writes. It is written by a management consultant whose language may not appeal to fusty lawyers. For example, it refers to 'utilisation' which I presume simply means number of chargeable hours worked in a day.

Having got past that there are some useful checklists on what exactly you need to think about when you are contemplating the M word. The high street practitioner still desperately hanging on to professional life will not be concerned about the benefits to merged multinationals having just one branch office in the Middle East. What would be more useful is how the banks will take to the combined overdrafts getting together and living happily ever after.

The book does not address what to do if it all goes wrong or when to say thanks but no thanks and walk away. Perhaps there would be a benefit in describing alternatives to merger '“ such as close relationships with other firms that have different but complementary skills. Some firms have working relationships so they help each other out as agents but do not charge on a quid pro quo basis, or lending out office space for interviews.

For all this, the book has useful checklists and helpful guidance on the most challenging issue of how to keep staff happy.