The highly anticipated transatlantic merger between U.K.-based Herbert Smith Freehills — No. 34 on the Global 200 — and New York-based Kramer Levin Naftalis & Frankel — No. 141 on the Global 200 — will be voted on by partners this month, and if approved, the combination will go live in May.
There’s just one little problem: HSF recently suffered its second year in a row of operating losses here in the U.S. The American Lawyer has the details:
HSF’s New York Limited Liability Partnership accounts, filed on the U.K.’s Companies House, showed the firm made a loss of $5.9 million, compared with a loss of $5.3 million the previous year.
Revenue for the New York LLP did marginally increase, however, from $48.8 to $50.8 million. …
A spokesperson for HSF commented: “The U.S. is a strategically important market in which we have invested heavily. Following our proposed combination with Kramer Levin, our practices and businesses in the U.S. will deliver 25% of the global firm’s profits.”
Realistically speaking, the firm’s limited financial losses shouldn’t have that much of an impact on the impending tie-up. HSF Kramer will have 2,700 lawyers and is expected to have at least $2 billion in revenue, putting it on track to rank in the top 25 on a global scale. HSF operates in 16 countries, while Kramer Levin has three offices in the U.S. As HSF’s chair and senior partner, Rebecca Maslen-Stannage, previously noted, the merger would be “transformational” for both firms. It seems unlikely at this point that either firm would walk away from the deal.
We look forward to welcoming HSF Kramer later this month, if everything goes according to plan. Best of luck to both firms as the voting process unfolds.
HSF Accounts Show Operating Loss in America For 2024 [American Lawyer]
Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Bluesky, X/Twitter, and Threads, or connect with her on LinkedIn.
The post Top Biglaw Firm Unveils U.S. Financial Losses Ahead Of Transatlantic Merger That Will Create A $2B Megafirm appeared first on Above the Law.
The highly anticipated transatlantic merger between U.K.-based Herbert Smith Freehills — No. 34 on the Global 200 — and New York-based Kramer Levin Naftalis & Frankel — No. 141 on the Global 200 — will be voted on by partners this month, and if approved, the combination will go live in May.
There’s just one little problem: HSF recently suffered its second year in a row of operating losses here in the U.S. The American Lawyer has the details:
HSF’s New York Limited Liability Partnership accounts, filed on the U.K.’s Companies House, showed the firm made a loss of $5.9 million, compared with a loss of $5.3 million the previous year.
Revenue for the New York LLP did marginally increase, however, from $48.8 to $50.8 million. …
A spokesperson for HSF commented: “The U.S. is a strategically important market in which we have invested heavily. Following our proposed combination with Kramer Levin, our practices and businesses in the U.S. will deliver 25% of the global firm’s profits.”
Realistically speaking, the firm’s limited financial losses shouldn’t have that much of an impact on the impending tie-up. HSF Kramer will have 2,700 lawyers and is expected to have at least $2 billion in revenue, putting it on track to rank in the top 25 on a global scale. HSF operates in 16 countries, while Kramer Levin has three offices in the U.S. As HSF’s chair and senior partner, Rebecca Maslen-Stannage, previously noted, the merger would be “transformational” for both firms. It seems unlikely at this point that either firm would walk away from the deal.
We look forward to welcoming HSF Kramer later this month, if everything goes according to plan. Best of luck to both firms as the voting process unfolds.
HSF Accounts Show Operating Loss in America For 2024 [American Lawyer]
Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Bluesky, X/Twitter, and Threads, or connect with her on LinkedIn.
