ILNews

Prioritizing increases ease of mergers

Back to TopCommentsE-mailPrintBookmark and Share

If you’re looking to expand your law firm’s geographic reach or portfolio of services, you might be thinking about the benefits of a merger – and the many steps involved in making that happen.

New letterhead, new website, new people – those are just a few considerations when attempting to grow your practice through merger. While firms may have different ideas about how to prioritize the many components of a merger, most managing attorneys or CEOs will tell you that your clients should always be at the top of the list.

Controlling the message

It’s no secret that firms are reluctant to talk about pending mergers. But inevitably, someone is going to get wind of the news and tell the press or tweet about it to a worldwide audience. If you lose control of how news of your merger is released, your clients may wonder if your firm is the proverbial sinking ship.
 

melanie green Green

Melanie Green, chief client development officer for the newly merged firm Faegre Baker Daniels, said that only a small group of upper-level management was involved in initial merger talks between Baker & Daniels and Minneapolis-based Faegre & Benson. Once the firms agreed to the merger and informed employees of that decision, they worked quickly to manage the news.

“We knew that with two firms making those announcements internally, that would quickly spread to other audiences,” Green said.

The firms acknowledged publicly that they were discussing a merger but released few other details. And management asked lawyers at both firms to call clients and let them know what was happening.

“So we took a pretty one-to-one approach,” Green said.

Phil Bayt, chief managing partner for Ice Miller, said that before the firm announced its merger with Columbus, Ohio-based Schottenstein Zox & Dunn, it had a thorough plan for disseminating the news.

“Well in advance of announcing the combination we developed a comprehensive internal and external communications strategy that included all our key stakeholders,” Bayt said. “Obviously, communicating the great news to clients was a top priority, and we did so through personal meetings, phone calls and email communication.” 

In November 2011, Jay McAveeney joined Bingham McHale as chief operating officer. In that role, he helped prepare the firm for its merger with Greenebaum Doll & McDonald, headquartered in Louisville, Ky.

McAveeney had been involved in mergers before, but he said the partnership that formed Bingham Greenebaum Doll was the first “merger of equals” he’d helped oversee.

“The ideal scenario is you try to hold off on an announcement until after the merger is approved by the respective firms, and I say that only because the success rate or the rate that mergers are actually consummated is not that high,” McAveeney said. “The hard part though is keeping it hush-hush. At some point, if it does get out and it hits the press somehow, you have to be ready to deal with that.”

Finding the right match

If your law firm lives for casual Friday, you probably don’t want to merge with a firm that strongly believes lawyers should always wear suits. In love, opposites may attract, but the same is not true for law firms.


froehle-tom-mug4c.jpg Froehle

Tom Froehle, chief executive officer for Faegre Baker Daniels, said that Baker & Daniels spent a lot of time thinking about what it wanted in a merger. Faegre & Benson seemed to be a good match – its practice areas like life sciences and corporate transactions were both areas that Baker & Daniels identified as desirable in its own growth, and both firms placed equal emphasis on diversity. But Froehle said that even when firms seem to have similar cultures, the true test of compatibility is how people get along face-to-face.

Baker & Daniels budgeted for travel so management could meet in person with decision-makers at Faegre & Benson and decide whether they all seemed to agree on general management strategies.

“That really is important – that personal interaction and spending a couple of days with people who you are likely to be working with,” Froehle said.

Patience is also a factor in finding a good match. When Sommer Barnard announced in 2008 that it would merge with Cincinnati-based Taft Stettinius & Hollister, the firms had been discussing plans for two years, said Bob Hicks, partner-in-charge of the firm’s Indianapolis office. More recently, Taft Stettinius & Hollister announced a merger with Chester Willcox & Saxbe, based in Columbus, Ohio, a plan that had been in the works for several years, Hicks said.


bob hicks Hicks

“So the old adage, ‘good things are worth waiting for’ is very much true when dealing with something so critical as a major law firm merger,” he added.

Prioritizing needs

You can probably wait until later to figure out how you’ll manage to provide enough coffee for a staff that just doubled in size, but some issues require more immediate attention.

Green said that Faegre Baker Daniels had new business cards and letterhead ready to go on Jan. 1, the day the merger became effective. The new website was launched immediately, too, as it had been in development for three months.

“We definitely had the benefit of some time to get those things done … but that’s not a general way of how all combinations come together,” Green said. Some firms may not have enough lead time to get a new website ready to launch by the merger’s effective date, she added, but they can find temporary solutions. That’s what Bingham Greenebaum Doll did.

McAveeney said that new email addresses were ready for use at the beginning of the year, but the website will continue to be revamped.

“The website – the way we’ve done it is we now have both our legacy URLs pointing to a merged firm website. It’s really just a landing page, but from there, you can click through to the legacy web site,” he said.

Pleasing people

Combining two firms with multiple offices while minimizing employee stress takes some finesse. And being forthright with attorneys and staff may help ease concerns.

“You communicate honestly, regularly and openly,” Hicks said. “Employees fear the unknown. It is the job of firm leadership to eliminate as much of the unknown as possible.”

McAveeney said with any merger, the key to employee satisfaction is making sure any new or changed responsibilities suit each person.

“That’s a delicate dance, if you will. It starts with not necessarily new employees, but in getting the right people in the right roles,” he said.

Despite management’s best efforts, some people may choose to leave a firm after a merger, especially if they fear their jobs may be eliminated.

“Part of the decision making that needs to be done is when you’re integrating, you have redundancies, and do you eliminate the people in those positions? But that’s usually a little bit down the road before you have start making those kinds of decisions,” he said.

Whether a merger is successful depends largely on how firms define success. Profit is just one marker of success, as far as McAveeneymerger is concerned.

“It all centers around servicing existing clients with a broader platform, so my idea of success is when a legacy Greenebaum Doll & McDonald client is now worked on by a legacy Bingham McHale attorney in Indianapolis that Greenebaum wouldn’t have had access to in the past,” he said.

Green said that internal harmony and ensuring that clients feel their needs are being met are two critical elements of any merger.

“Because law is a people business,” she said.•

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. State Farm is sad and filled with woe Edward Rust is no longer CEO He had knowledge, but wasn’t in the know The Board said it was time for him to go All American Girl starred Margaret Cho The Miami Heat coach is nicknamed Spo I hate to paddle but don’t like to row Edward Rust is no longer CEO The Board said it was time for him to go The word souffler is French for blow I love the rain but dislike the snow Ten tosses for a nickel or a penny a throw State Farm is sad and filled with woe Edward Rust is no longer CEO Bambi’s mom was a fawn who became a doe You can’t line up if you don’t get in a row My car isn’t running, “Give me a tow” He had knowledge but wasn’t in the know The Board said it was time for him to go Plant a seed and water it to make it grow Phases of the tide are ebb and flow If you head isn’t hairy you don’t have a fro You can buff your bald head to make it glow State Farm is sad and filled with woe Edward Rust is no longer CEO I like Mike Tyson more than Riddick Bowe A mug of coffee is a cup of joe Call me brother, don’t call me bro When I sing scat I sound like Al Jarreau State Farm is sad and filled with woe The Board said it was time for him to go A former Tigers pitcher was Lerrin LaGrow Ursula Andress was a Bond girl in Dr. No Brian Benben is married to Madeline Stowe Betsy Ross couldn’t knit but she sure could sew He had knowledge but wasn’t in the know Edward Rust is no longer CEO Grand Funk toured with David Allan Coe I said to Shoeless Joe, “Say it ain’t so” Brandon Lee died during the filming of The Crow In 1992 I didn’t vote for Ross Perot State Farm is sad and filled with woe The Board said it was time for him to go A hare is fast and a tortoise is slow The overhead compartment is for luggage to stow Beware from above but look out below I’m gaining momentum, I’ve got big mo He had knowledge but wasn’t in the know Edward Rust is no longer CEO I’ve travelled far but have miles to go My insurance company thinks I’m their ho I’m not their friend but I am their foe Robin Hood had arrows, a quiver and a bow State Farm has a lame duck CEO He had knowledge, but wasn’t in the know The Board said it was time for him to go State Farm is sad and filled with woe

  2. The ADA acts as a tax upon all for the benefit of a few. And, most importantly, the many have no individual say in whether they pay the tax. Those with handicaps suffered in military service should get a pass, but those who are handicapped by accident or birth do NOT deserve that pass. The drivel about "equal access" is spurious because the handicapped HAVE equal access, they just can't effectively use it. That is their problem, not society's. The burden to remediate should be that of those who seek the benefit of some social, constructional, or dimensional change, NOT society generally. Everybody wants to socialize the costs and concentrate the benefits of government intrusion so that they benefit and largely avoid the costs. This simply maintains the constant push to the slop trough, and explains, in part, why the nation is 20 trillion dollars in the hole.

  3. Hey 2 psychs is never enough, since it is statistically unlikely that three will ever agree on anything! New study admits this pseudo science is about as scientifically valid as astrology ... done by via fortune cookie ....John Ioannidis, professor of health research and policy at Stanford University, said the study was impressive and that its results had been eagerly awaited by the scientific community. “Sadly, the picture it paints - a 64% failure rate even among papers published in the best journals in the field - is not very nice about the current status of psychological science in general, and for fields like social psychology it is just devastating,” he said. http://www.theguardian.com/science/2015/aug/27/study-delivers-bleak-verdict-on-validity-of-psychology-experiment-results

  4. Indianapolis Bar Association President John Trimble and I are on the same page, but it is a very large page with plenty of room for others to join us. As my final Res Gestae article will express in more detail in a few days, the Great Recession hastened a fundamental and permanent sea change for the global legal service profession. Every state bar is facing the same existential questions that thrust the medical profession into national healthcare reform debates. The bench, bar, and law schools must comprehensively reconsider how we define the practice of law and what it means to access justice. If the three principals of the legal service profession do not recast the vision of their roles and responsibilities soon, the marketplace will dictate those roles and responsibilities without regard for the public interests that the legal profession professes to serve.

  5. I have met some highly placed bureaucrats who vehemently disagree, Mr. Smith. This is not your father's time in America. Some ideas are just too politically incorrect too allow spoken, says those who watch over us for the good of their concept of order.

ADVERTISEMENT