Law Firm Mergers on the Rise - What This Means for Legal Talent and Hiring

In the first half of 2025, law firm mergers have gained notable momentum, signalling not just a shift in market strategy but a potential ripple effect across legal recruitment and career planning. According to a new report from Fairfax Associates, a total of 35 law firm mergers were completed in the first six months of the year, representing a 21% increase from the same period in 2024.

As legal hiring experts, we’re keeping a close eye on how these developments impact both law firms and legal professionals in the lateral market. 

In this article, we explore the key takeaways from this uptick in mergers and what it means for mandates, lawyers and law firms

Positives of Law Firm Mergers

For Legal Professionals:

• Broader Practice Offerings: Merged firms often expand their practice areas, providing lawyers with access to new clients, teams, and knowledge pools.
  
  

• Enhanced Platform: A larger firm may offer greater geographic reach, access to more sophisticated and larger clients, and a stronger infrastructure, making it a more appealing platform to grow your career.
  
  

• Boosted Credentials & Adaptability: Being part of a high-profile merger doesn’t just enhance your CV -  it signals that you’ve successfully navigated organisational change, adapted to new structures, and continued to thrive in a dynamic environment. For future employers or clients, this showcases your ability to operate effectively through periods of transformation, a highly valuable trait in today’s evolving legal landscape.
  
  

For Law Firms:

• Employer Brand Strength: Mergers can elevate the profile and prestige of a firm, helping attract high-calibre talent that might not have considered the firm previously.
  
  

• Expanded Talent Pool: Firms benefit from each other’s internal talent, reducing short-term hiring needs and filling existing skill gaps.
  
  

• Revenue and Growth Potential: With combined client bases and diversified offerings, many merged firms enjoy stronger commercial performance.
  
  

The Challenges: Risks for Firms and Legal Professionals

For Legal Professionals:

• Cultural Misalignment: Mismatched values, working styles, or leadership approaches can affect morale and retention post-merger. For example, following a merger, firms may reassess or unify internal policies, including those around flexible or remote working. If one firm operated with a hybrid model and the other was more traditional, the merged entity may implement office-first mandates, which could cause friction among employees who value autonomy and work-life balance. These shifts can significantly impact employee satisfaction, engagement, and ultimately retention.
  
  

• Job Uncertainty: Mergers often raise concerns about role redundancy, leadership changes, or strategic realignments, driving some lawyers to consider new opportunities. For instance, overlapping practice areas or support functions may lead to consolidation, putting certain roles at risk. Additionally, a shift in firm strategy, such as focusing more heavily on corporate work and scaling back litigation, can leave lawyers in less prioritised departments feeling uncertain about their prospects. These dynamics often prompt proactive moves from legal professionals looking to regain control of their career trajectory.

• Client Conflicts: Lawyers may face restrictions or be forced to drop existing clients due to conflicts introduced by the merger, particularly when both legacy firms have overlapping client rosters or competing interests. This can significantly impact job satisfaction, especially for those who’ve built long-standing relationships or specialised practices around certain clients. Being unable to continue representing key accounts can leave professionals feeling disconnected from their work and lacking control over their client portfolio, a crucial part of their identity and success within a firm.
  
  

For Law Firms:

• Integration Complexity: Aligning systems, compensation structures, billing practices, and internal processes across two previously separate firms is a resource-intensive and often challenging undertaking. These internal shifts can lead to short-term inefficiencies, miscommunication, or delays, all of which have a knock-on effect on client experience. As teams adjust to new workflows or grapple with unfamiliar systems, the quality and consistency of service delivery can be compromised. In a relationship-driven sector like law, even minor disruptions can damage client trust and ultimately, the firm’s hard-earned reputation.

• Reputational Risk: If a merger is poorly executed, whether due to internal disorganisation, cultural clashes, or misaligned strategic goals, the consequences can ripple beyond the firm itself. Not only can it damage the firm’s credibility and appeal to both current and prospective lawyers and clients, but it can also serve as a cautionary tale for others. Future merger partners may be deterred from entering discussions if a firm appears unstable or lacking in integration capabilities. In an industry where successful mergers are seen as a mark of prestige and strategic foresight, a misstep can significantly undermine a firm’s standing and long-term growth potential.

• Talent Flight Risk: Even before the integration process begins, the announcement of a merger can trigger uncertainty, prompting high-performing team members to explore other opportunities. The potential for changes in leadership, role redundancy, or cultural shifts can be unsettling, especially if communication is lacking. That’s why clear, timely, and transparent communication from the leadership team is essential. Providing reassurance and clarity about the vision, structure, and opportunities ahead helps control the narrative internally, reduces speculation, and can significantly minimise panic-driven departures. How the news is delivered and followed up, plays a critical role in retaining key talent during times of change.

Recruitment Impacts: What We’re Seeing

Final Thoughts

While law firm mergers can drive growth and present new opportunities, they also introduce complexity, especially when it comes to attracting and retaining top legal talent.

At Fintelligent, we work closely with both lawyers and hiring law firms to navigate these periods of change, providing insight-led support and helping our clients remain competitive in a dynamic legal market.

If you're considering a career move or looking to hire strategically within the legal space, our specialist team is here to help. Get in touch with Max, today!

📞 +1 (929) 463 9909

✉️ max.walsh@fintelligent.co.uk