The high-level talks, which began formally in January, are being led by Watson Farley managing partner Michael Greville and Chadbourne managing partner Charles O’Neill. They are being assisted by a handful of senior management figures, including Watson Farley’s chairman, Frank Dunne.
The firms have played down talk of any deal being struck in the coming months, with the only set deadline so far said to be before the end of the year.
A key driver behind the merger is both firms’ focus on project finance and the energy sector. Chadbourne acts for a number of major energy companies including Gazprom, Rosneft and Gulfstream Natural Resources, while Watson Farley’s energy practice acts for clients such as Edison Renewables and Falck Renewables.
Greville told Legal Week: “I can lay this firm alongside any big American firm and write a business plan that says both firms will get more business, but this deal is much more than that. Chadbourne has a big renewable energy practice and we are one of the few firms that has done a lot of deals in that sector.”
O’Neill added that Watson Farley’s finance and energy practices are a big draw for the firm. O’Neill, who was re-elected as Chadbourne’s managing partner for a three-year period earlier this month, added: “There are some interesting synergies between the two firms.”
The firms have little in the way of overlap between offices. Chadbourne operates 13 offices mainly across the
Greville said: “Chadbourne has a very good business in Eastern Europe and needs a bigger
The firms are also comparable financially. Top-earning Watson Farley partners draw around £740,000, a figure that is thought to be similar for senior Chadbourne partners. Watson Farley operates a strongly-managed lockstep, which includes a bonus pool, and is close to Chadbourne’s remuneration model.
Last year turnover at Watson Farley increased by almost 10% from £49m to £53.5m, while average profits per equity partner (PEP) climbed by 7% from £390,000 to £419,000. Chadbourne, meanwhile, saw revenue up by 11% to $254m (£129m) and PEP rise by 12% to $1.085m (£549,000).
Partners at the firms were told about the talks late last week. One Watson Farley finance partner told Legal Week: “One of the key drivers of the talks is project finance — so it should be excellent for us.”
A
If successful, the talks would bring an end to Watson Farley’s long-term quest for a merger partner, with the firm having
come close to securing transatlantic tie-ups with US practices including Hunton & Williams and Squire Sanders & Dempsey in recent years.
In 2002, the top 50
Chadbourne has been in
Additional reporting by
