2019 Q1 Newsletter: Luring the M&A Lawyer

Law firms operating in Texas oversaw a record number of mergers, acquisitions, divestitures and joint ventures last year, valued at nearly half a trillion dollars. For those (every single one) of us who are counting, the lucky few firms involved in these deals earned more than $3 billion in legal fees. Unsurprisingly, the firms with the most M&A deals are also those boasting the highest overall revenues, all according to The Texas Lawbook.

Revenue numbers like that make the rainmaker lawyers behind these transactions very hot commodities in an already competitive market. Over the past decade, dozens of firms headquartered outside of Texas have opened satellite offices here. But they’ve largely siphoned talent away from Texas-based firms rather than bringing in staff or hiring from other non-local firms. That’s compounded by a relative stagnation in the pool of Texas attorneys.

Texas-based legacy firm Vinson & Elkins still reigns king in attorney count and billings, but that also makes it a tempting target. Kirkland & Ellis and Sidley Austin have both ballooned their M&A staff and billings, due in large part to their success luring attorneys away from V&E and other Texas firms. But that flow of talent seems to be slowing; Q1 of 2018 saw 28 Corporate/M&A/Securities partners move firms, while in Q1 of this year, the number dropped to just five moves.