Legal powerhouses Allen & Overy and Shearman & Sterling have found themselves losing their competitive edge over the past two decades. A recent analysis from industry observer Hugh A. Simons reveals that both firms have significantly dropped in rankings, with Allen & Overy falling from the 6th to 11th position, and Shearman & Sterling tumbling from 9th to a staggering 61st place.
What is perhaps more troubling than their ranking slide, is the steady decline in profits per equity partner (PEP), which is generally seen as a core indicator of a law firm’s ability to keep its most commercially viable partners. Both firms recorded a worrying descend, moving globally from the 10th-20th position to between 40th and 50th by 2021 according to data provided by the report.
A much-speculated merger between the two entities could prove beneficial in this scenario, providing the joint entity with the opportunity to reverse these trends while regaining some lost footing. The potential benefits of such a merger might, however, not be fully appreciated or expressed by those involved.
For further information and a deeper dive into the dynamics of the pending merger, please refer to the full article, “A&O Shearman: The Compelling but Unspoken Rationale” by Hugh A. Simons.