The largest merger by combined revenue of two firms ever is set to be voted upon by partners early next week. The transatlantic team-up is set to generate seismic waves that reform the very structure of firms in the future.
“Hogan Lovells Cadwalader will bring unmatched finance, corporate, regulatory, and disputes capabilities to clients in financial markets, particularly across the critical New York–London corridor.”
Cadwalader’s official statement
Before we discuss the intricacies of the deal, and what impacts it could have on the industry, employees and clients; it is important to have a look at the statistics and profile of each respective firm.
HOGAN LOVELLS
| Revenue | £2.32 billion |
| Lawyers | 2600-2800 |
| Partners | 800 |
Core Practice Areas:
Corporate & Finance
Litigation & Dispute resolution
Reputation:
One of the largest international firms worldwide
Ranked 11th in Am Law 200 2025
Location:
35 + offices worldwide
Major operations in London, New York, Paris, Washington.
CADWALADER, WICKERSHAM & TAFT
| Revenue | £480 million |
| Lawyers | 427 |
| Partners | N/A |
Core Practice Areas:
Financial services law
Corporate
Reputation:
One of the oldest firms on Wall Street at over 200 years old.
Renowned for their innovative financial solutions.
Location:
New York, Washington, London, Charlotte.
Hogan Lovells Cadwalader projected combined revenue
= £2.7 billion
Hogan Lovells’s motive:
Hogan Lovells has been striving for a greater New York presence. Merging with Cadwalader instantly gives Hogan a much more respected identity in New York, piggybacking off of Cadwalader’s historic credibility.
New York is a financial hotspot with incredibly strong channels to London, accessing it will almost definitely lead to greater access to world renowned banks and financial institutions within New York.
Another reason that Hogan Lovells is pursuing the merger at this current time, is the trend of major transatlantic mergers; it’s no coincidence that this merger is rumoured so soon after there Taylor Wessing and Winston & Strawn merger; along with the Perkins Coie and Ashurst merger. Hogan Lovells seeks to defend its territory against these newly established mega firms, as well as from their long-term competition from US elite like Kirkland & Ellis and Latham & Watkins.
A merge with Cadwalader provides Hogan with the financial firepower and size to not only defend itself from rival mega-firms; but establish themselves as a dominant force in the financial and PE sectors; whilst maintaining their litigious prowess and practice specialism.
“Cadwalader, a premier Wall Street institution, brings top-of-the-market finance capabilities, which combined with Hogan Lovells’ powerful global platform, will create a firm with unmatched strength in key G20 markets.”
Miguel A. Zaldivar, CEO of Hogan Lovells
Cadwalader’s motive:
Similar to Hogan’s motives, Cadwalader wants global reach and a diversified strength of schedule. Hogan has presence in every major financial market, an asset that is extremely attractive to the much smaller Cadwalader who want to expand and have access to a broader and deeper client base.
Cadwalader has suffered partner exits and lateral moves, which have lead to not only some destabilisation within the firm but risks of poaching from larger firms. Protection from this could be provided by the much higher equity per partner pay of Hogan which would act as an incentivising medium and the sheer size of the projected merged firm.
As a smaller firm, they are more exposed to financial cycles and it is more risky for them to invest heavily in innovation at the rate that demanding clients now expect: another fact inducing the merger.
Mutually:
Both firms want the protective layer of size and a capacity for adaptability that a large merger will provide. Not only from a financial standpoint but to prevent poaching of staff and desirability to demanding clients amidst the manic transatlantic scrambles.
“Clients are increasingly looking for law firms with deep sector expertise and broad global reach to advise on their most complex mandates around the world.”
Pat Quinn, Managing Partner of Cadwalader
What the merger really means:
What it means for the legal industry:
It sets a new record for the size of a merger. The sheer revenue of thew projected firm will surely have magic circle and US competitors agitated at their new competition’s capacity for ownership of the markets.
It perpetuates the wave of transatlantic mega-mergers, a wave that signals the increasing pressure being subjected to medium sized mid-market firms, which are struggling to keep their head above water.
The finance orientation of the merger would pose a genuine challenge to PE titans Kirkland & Ellis and the historically untouchable Magic Circle. The size of the merger would leave it much more resilient to financial fluctuations in the market and make it a formidable opponent in the financial sector for any firm.
What it means for employees:
Associates from both parties will likely benefit from an increased net of opportunities, which will include international secondments, more matters that are cross-bordering as well as a stronger overall brand of their workplace. This applies mostly towards associates at Cadwalader who will go from being employees at a historic but niche firm to an incredibly large, globally present one.
The scale of Hogan Lovells will likely mean that employees have a larger access to technology, higher funded training and legal tech; all of which could have a positive net impact on the firm’s performance and employee morale.
However, the firms’ merge could lead to a merge of HR departments which could possibly mean less capacity for support for employees and less vigilance; however this is speculative.
What it means for clients:
Clients will now have access to a global reaching mega-firm which has extensive financial expertise complemented by litigious prowess and cross border capabilities.
Clients will likely directly benefit from faster deal execution, integrated regulatory advice, as well as a more smooth cross-border process of communication.
In conclusion, it seems very likely that the firms will pursue the merger to completion due to the clarity of their respective goals and the benefits that it could provide.
The pertinent questions that the merger prompts are:
How many mid-size firms will follow the lead and merger in order to keep up with market titans?
Is the age of the specialist firm over?
Are their downsides to a full-service global mega-firm and will they be increasingly apparent the more transatlantic mergers that we see?
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Cover Photo: Fully licensed from Adobe Stock Photos
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By George Hocking
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