A potential merger is on its way as two of high-profile firms prepare to merge which could result in one the biggest firms in the United States. Orrick Herrington & Sutcliffe, which has a very strong base in Silicon Valley, is set to merge with Pillsbury Winthrop Shaw Pittman, which has an equally strong base in New York and Washington DC. One of the leading global law firms in the field of public finance, Orrick also is particularly focused in serving companies in the sectors of technology, energy and project finance. On the other hand, Pillsbury also has a strong presence in the fields of asset finance, technology, energy, and natural resources. This merger would form one of the ten largest firms in the country. In terms of attorney head count, it would be one of the world’s twenty largest firms with a total of approximately 1,700 attorneys and is expected to have an annual revenue of about $1.4 billion.
This as a very encouraging and progressive step, but there are risks as well. The highly regarded firms must ensure, in considering a potential merger, that they get their calculations and integration strategy correct. Many mergers take place because of firms’ weakening; in order to sustain themselves, they are left with no choice but to follow a merger. On the other hand, some firms merge with a view to progress and expand domestically or internationally—or both. The intention is to strengthen in size so as to be able to focus and perform better in the core areas.
Pillsbury currently has more than 650 attorneys throughout the country and abroad. It took in approximately $560 million in gross revenue last year which made it the 56th-highest earning law firm in the country. Originally a San Francisco-based shop known as Pillsbury, Madison & Sutro, it picked up Los Angeles-based Lillick & McHose in 1990 and Washington, D.C.’s Cushman Darby & Cushman in 1996. In 2001, Pillsbury absorbed New York’s Winthrop, Stimson, Putnam & Roberts before finally completing a merger with D.C.-based Shaw Pittman. Orrick, on the other hand has almost 1000 lawyers. It was the 27th-highest earning law firm in the country with $866 million in gross revenue last year.
Like any large-scale merger, there are risks associated with the deal; culture integration and financial management are among the most obvious. On the brighter side, prior mergers of this kind have created large firms with massive client lists and corresponding profitability.