Within Allen & Overy, an unanticipated shift has resulted in Abu Dhabi dealmaker Khalid Garousha being given a significant part to play as the firm is closing in on its merger with Shearman & Sterling, a key move in securing the firm’s future. Garousha was designated as the UK firm’s second in command in July following the sudden exit of a veteran executive, and he will now play a substantial role in the complex task of combining two century-old operations from either side of the Atlantic, each with distinctly different cultures.
A partner at CM Murray, Corrine Staves, remarked that “Integration is a huge, huge, huge piece of jigsaw… Whether it’s successful is all to do with how well integrated two firms are.” In October, Allen & Overy partners will convene to make a decision on whether to merge with the New York-based Shearman, a move which will create one of the world’s largest law operations. Each firm’s lawyers are currently being sold on the idea by a senior partner at A&O, Wim Dejonghe, and Shearman chief Adam Hakki.
Garousha is known and respected for expanding the firm’s Middle East branch. However, this is a surprising role for a lawyer usually found maintaining a low profile at the firm and located far from its London power center, according to observations from two A&O partners and five UK legal industry representatives. Despite these changes, Garousha will continue his work based in Abu Dhabi, where he has been situated for the past two decades. He will be formally stepping into his new role next month, serving on an interim basis until April 2024.
Furthermore, Garousha managed to secure the global managing partner role, which was left vacant over the summer when London lawyer Gareth Price abruptly left Allen & Overy after 30 years, citing personal reasons for his departure. Garousha has been appointed to the interim role by a unanimous decision from the firm’s board, as stated by a spokesperson for A&O.
Garousha comes into this role at a pivotal point for the firm. The proposed merger with Shearman will culminate in a global firm boasting over 3,900 lawyers and $3.4 billion in combined revenue. This would also provide support to Shearman, the Manhattan-founded firm which has experienced a surge of exits following the breakdown of its merger discussion with Hogan Lovells earlier in the year.
Garousha’s appointment to the interim role will officially commence next month, running until April 2024. He will remain stationed in Abu Dhabi for the time being, where he has been working for twenty years. His duties will include managing the firm’s Middle East and Turkey operations. Garousha’s successful leadership of some large-scale deals in the Middle East, a region of increasing interest to global law firms due to its strategic location and low taxes, has been another reason for his rise within the firm. Allen & Overy first founded an office in the Middle East in Dubai, back in 1978.
For the A&O-Shearman merger to get the green light, 75% of the partners at each firm must cast their vote in favor. Transatlantic mergers are often challenging to finalize due to differences in accounting, compensation, and culture, as suggested by Lisa Smith. A critical part of Garousha’s role will likely be concerning operational deliverables such as integrating the two firm’s technology and billing systems, motivating lawyers to share credit, and maintaining communication with clients and the public.
Read more about this ongoing development.