Should you hold out for a merger of equals?

Should you hold out for a merger of equals?

On the wider strategic point of demanding a merger of equals when such deals are as rare as hens’ teeth is an interesting topic for discussion. Some may argue that it is better to hold out for what you want than “give up and be taken over”. Others may say that it should be obvious after a five minute scan of the financial and rankings tables which firms would meet your goals and if they are not interested after a couple of times of asking then one’s idealistic merger strategy is dead in the water.

It can remain tempting to keep holding onto an ideal even in the face of the facts. The more logical choice is to reassess one’s strategy and reconsider what type of merger is needed to get to where you want (and may need) to be, (and to consider if merger is even the right route to achieving your strategic goal). To quote John Maynard Keynes when challenged over his reappraisal of a major piece of economic theory: “When the facts change, I change my mind. What do you do, sir?”

It should also be added that even if two firms achieve this utopian vision of merger equality there is no guarantee that any of the attributes ascribed to it will manifest themselves. Once combined there is no reason why one firm’s culture will not subsume the other, or that partners of either legacy f

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About the author:

Richard helps law firms with important strategic decisions. He advises on areas such as merger, practice development and geographical expansion. He also provides assistance to law firms in relation to organisational and operational issues.

Richard has spent over 16 years working in the legal sector focused on the UK and global legal markets. He previously worked at Jomati as a strategy consultant and authored the Jomati Report series between 2009 and 2014.

Prior to that, Richard worked at US-based, Hildebrandt International, and also held senior, legal sector editorial roles in London and Paris.