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A businessman with briefcases enters office building, file photo. REUTERS Toru Hanai_Small

U.S. law firm mergers focus on smaller regional deals

10/2/2012 COMMENTS (0)

By Peter Rudegeair

Oct 2 (Reuters) - Three regional law firms announced acquisitions on Monday, jump-starting deal activity for the fourth quarter and continuing the trend of small-firm mergers.

Florida firm Carlton Fields said on Monday it would acquire the New York-based Rosner & Napierala. The move provides the general practice firm, which has 300 attorneys, with its first office in Manhattan and adds six new attorneys, including two partners.

Adams and Reese, a 260-lawyer business law firm with offices throughout the Southeast, said it would acquire Igler & Dougherty of Tallahassee, Florida, gaining seven attorneys and two partners.

In a third merger, Fort Lauderdale-based Becker & Poliakoff said it would acquire Litman Law, a six-lawyer firm in Manassas, Virginia. The Litman Law deal comes a week after Becker & Poliakoff announced it was acquiring another small southeastern firm, Cornett, Googe & Associates, which is based in Stuart, Florida. Prior to both acquisitions, Becker & Poliakoff employed 145 attorneys and lobbyists.

Mergers and acquisitions among smaller regional firms have been a trend since the second half of 2010, according to Fairfax Associates, a consulting group. Last quarter, there were 14 law firm mergers, the same number as the third quarter of 2011, according to MergerLine, a quarterly report issued by law firm consultancy Altman Weil. Just under half of those deals involved firms in the Southeast, and almost all involved firms with fewer than 25 attorneys.

"Small deals are easier to swallow, easier to integrate," said Gary Rosen, Becker & Poliakoff's managing shareholder. "Negotiations tend to be less complicated, and usually they can be accomplished in a short period of time."

Overall, 39 law firm mergers were announced in the first nine months of 2012, according to Altman Weil. That's four fewer deals than were announced over the same period in 2011. All but four of those announced in 2012 involved firms with fewer than 25 attorneys.

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