10 Questions Partners Facing a Merger Need to Answer

Mergers and acquisitions are on the rise and are becoming a primary means by which law firms establish their position within the marketplace, grow their business, access new clients and acquire new practice areas. But as a partner in a law firm facing a merger, this can be a period of significant uncertainty, and you should ask yourself these ten questions to determine whether you should stay and potentially be tied into a binding lock-up agreement or leave before the merger completes.

1. What will the merger mean for your practice?

A merger will typically expand the geographical reach of a firm, so in many instances, the hierarchy will remain unchanged or subject to minimal change. In other instances, the changes can be considerable, so you should consider whether your practice remit will experience flux or remain reasonably stable.

2. Does the strategy make sense?

Do you understand why the merger has been proposed, and are you satisfied with the reasons given? Do you believe that the merger will achieve the desired objective, or will it compromise the current long-term business plan?

3. Will it affect the firm's brand?

Mergers have the potential to diminish, enhance or leave a firm's brand unchanged. What effect do you think the proposed merger will have on your firm's brand, and are you comfortable with it??

4. What will the impact be on your team?

A merger brings together two different firms with cultures that may not align. This can create operating difficulties if not overcome at an early stage in proceedings. Likewise, hierarchical changes could result in staff movements or losses, affecting existing personnel and exacerbating morale issues.

5. How will it affect your career aspirations?

Will the changes give you more opportunities for career development, greater responsibilities and more input into strategic issues, or will you simply have more hurdles to overcome? Will you be offered the chance to develop your skills or experience a greater range of practice areas?

6. How will it affect you personally?

Will the changes require you to move home, commute longer distances or work longer hours? Or will the changes bring you closer to home and deliver an improved work-life balance? Will your compensation package be affected, and will you be required to work more billable hours?

7. Will it cause any client conflicts?

Will your existing clients be satisfied with the changes, or will the disruption cause them to move to another firm? If this happens, would you wish to move with them or stay put and seek new clients?

8. Will it cause any practice conflicts?

Do the practices of the merging firms align, or are there any conflicts which will need to be overcome? Do the firms' ethics and values align? If they do not, which will take precedence after the merger is completed?

9. What are other partners planning to do?

Are other partners at your firm contemplating the change with excitement or trepidation? What are their concerns, and do they mirror your own? Do they have a more in-depth understanding of the upcoming changes, and what are their long-term plans?

10. How soon do you need to decide?

Are you content in your current role and willing to do what it takes to ensure that the merger is successful? Or do you feel that niggles will grow and eventually compromise your ability to do what is required to ensure success??

When deciding on your future with a firm facing a merger, you should consider its past and current performance in addition to its strategic direction to determine whether to jump ship early or to ride the storm in hope of a better future.

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