Large firm’s demise impacts mergers

Altman Weil MergerLine is calling it the “Dewey Effect:” a slowdown in mergers and acquisitions by law firms following the end of Dewey LeBoeuf.

Dewey LeBouef, a law firm out of New York with more than 1,000 attorneys, filed for bankruptcy in the spring. Before that, partners were leaving the firm in droves, leading many to speculate that the end was near for the firm.

“The demise of Dewey LeBouef this spring put over a thousand lawyers and hundreds of millions of dollars of business into play, shifting the short-term focus of many law firms to those opportunities,” said Altman Weil principal Ward Bower.

Seven mergers were reported in the United States in April; there were just two in May and two in June. This follows six quarters that averaged 15 mergers.