Will Heller secure the big deal?

Is the Heller Ehrman saga about to reach a new chapter? For those unfamiliar with the Californian legal market, the substantial West Coast firm is widely tipped to be on the merger trail. This comes against a backdrop of several years dominated by senior departures (more than 30 partners over the last 18 months), strategic disagreements and lagging profits (see story).

Firms to have been connected with the San Francisco-based practice include Chicago’s Winston & Strawn and Proskauer Rose of New York. But recently the firm has been linked more often with Baker & McKenzie.

On paper it would seem to make sense since Bakers has for a long time been on the look-out to reinforce its US practice to complement its international network, as evidenced by its talks with the now-defunct Coudert Brothers in 2005.

Putting the two together would create a practice that would become America’s largest firm by revenue, with turnover approaching $2.5bn (£1.27bn), with Heller contributing roughly $500m (£253.1m) of that total.

Managing conflicts and integration on that scale is a tall order but it would offer Bakers the prospect of securing a commanding presence in the West Coast, especially in litigation and intellectual property. Partner profitability, at both firms slightly above $1m (£510,000) in 2007 according to The American Lawyer, is also in the same ball park.

Private responses from partners at both firms range from nervous laughter to a decent impression of a rabbit in the headlights but denials have not been forthcoming.

Bakers' official statement on the matter reads: “Like all leading law firms, we are continuously studying the market for strategic growth opportunities. At any given time, we may be in discussion with a number of individuals, practice groups or firms around the world. By firm policy, we do not comment on such discussions until they are positively concluded.”

Whatever the truth, events appear to be moving quickly.

alex.novarese@legalweek.com, jeremy.hodges@legalweek.com