Firm leaders discuss selling points as deal goes to a vote
As Berwin Leighton Paisner (BLP) closes in on its merger with Miami-based Greenberg Traurig, both firms have targeted full financial integration as their leaders sell the deal to their partnerships.
While transatlantic unions between law firms often result in Swiss verein structures that keep the finances of firms joining forces separate, BLP managing partner Lisa Mayhew said an objective of a merger with Greenberg ‘would be full financial integration’.
While the plan for financial union is ambitious, it avoids many of the cultural issues that have plagued previous transatlantic mergers. However, it also raises some headaches, as Greenberg operates on a cash accounting system favoured by many US law firms, while BLP operates on an accrual basis.
Practice-wise, it comes as no surprise that real estate is one of the biggest drivers of the deal, with the practice contributing around 30% of BLP’s revenue and Greenberg employing more than 300 property lawyers globally. Mayhew told Legal Business: ‘We’ve set ourselves two main targets. First, we want to be a game-changing law firm. Secondly, we [want] to be the world’s number one real estate and infrastructure firm. BLP is performing well, so we’d only do this merger if it expedited our strategic aims.’ With BLP absent any presence in the US, the proposed tie-up would accelerate that plan.
‘We want to be the world’s number one real estate and infrastructure firm.’
Lisa Mayhew, BLP
Two issues that came up the most in the leadership election that saw Mayhew replace Neville Eisenberg last year were BLP’s lack of heft in the London corporate market and its light international presence. Behind the scenes, a merger with Greenberg is being touted as being able to solve both these issues, while providing the US firm with the international disputes footprint it currently lacks.
Greenberg executive chair Richard Rosenbaum told Legal Business BLP’s interest in its London chair Paul Maher sparked discussions.
‘Maher is a high-quality lawyer, his clients never leave him. He’s a lawyer’s lawyer and BLP had a strong interest in his practice. Of course, the access to the US and the balance of our network are game changers for any UK firm but if you look at what Paul brings to the table, he would be an important addition to any firm.’
Another advantage to the tie-up, according to Rosenbaum, is greater geographic coverage. With less than 20% of BLP and Greenberg’s combined headcount of 2,700 lawyers based outside the US and UK, there is very little cross-over internationally, particularly in Asia, where both firms have patchy networks.
‘There is no overlap between our offices in Asia,’ he said. ‘There are two places in Asia – Hong Kong and Singapore – where we do not have offices because of the stage of our development. If we could have that presence without a large investment, those would be very welcome for disputes, finance and real estate. The interesting thing about this deal, if we were to do it, is that we would have offices in Hong Kong, Singapore, Shanghai, Beijing, Tokyo and Seoul.’
For Greenberg, BLP offers a well-regarded international disputes team. Despite disputes being Greenberg’s biggest revenue generator, it refers the vast majority of its contentious work outside the US to other firms as it has little overseas disputes presence.
tom.moore@legalease.co.uk