The legal industry has witnessed a notable surge in merger activity throughout 2025, reflecting a strategic shift among law firms aiming to enhance their market presence, diversify practice areas, and bolster financial performance. This trend underscores the evolving dynamics of the legal sector, where consolidation is increasingly viewed as a pathway to competitiveness and sustainability.
According to data from Fairfax Associates, the first quarter of 2025 saw 22 completed law firm mergers, marking a 5% increase compared to the same period in 2024. This uptick continued into the second quarter, with 12 additional mergers, culminating in a 21% rise in mergers during the first half of 2025 compared to the previous year. Notably, several of these mergers involved firms with over 100 lawyers, indicating a trend toward larger-scale consolidations.
One of the most significant mergers was the combination of London-based Herbert Smith Freehills and New York’s Kramer Levin Naftalis & Frankel. Effective June 1, 2025, this transatlantic merger resulted in a firm comprising 2,700 lawyers across 26 offices, with projected revenues exceeding $2 billion. The merger aims to strengthen the firm’s U.S. presence, particularly in private equity, litigation, arbitration, and white-collar crime sectors. Additionally, the firm is considering expansion into Texas to support growing energy sector demands.
Another notable merger involved McDermott Will & Emery and Schulte Roth & Zabel. Partners at both firms voted to merge, forming McDermott Will & Schulte, effective August 1, 2025. This merger established a global firm with 1,750 lawyers across more than 20 offices. McDermott, known for its work in healthcare and other sectors, reported over $2.2 billion in gross revenue in 2024, while Schulte specializes in hedge funds and private capital clients, generating $618 million in revenue the same year.
In November 2025, London-based Ashurst and U.S.-based Perkins Coie agreed to merge, creating a global law firm with 3,000 lawyers and $2.7 billion in revenue, placing it among the top 20 law firms worldwide. The new firm, to be called Ashurst Perkins Coie, will be jointly led by Ashurst’s Paul Jenkins and Perkins Coie’s Bill Malley as co-CEOs. With 52 offices in 23 countries, the merger aims to strengthen cross-border legal capabilities in areas including technology, financial services, and infrastructure.
These mergers are part of a broader trend of consolidation in the legal industry, as firms seek scale for competitiveness in talent acquisition and market influence. Similar mergers include the 2024 union of Allen & Overy with Shearman & Sterling, forming A&O Shearman. Ongoing discussions between Schulte, Roth & Zabel and McDermott Will & Emery highlight continued interest in strategic tie-ups. Experts attribute these moves to the pursuit of profitability, talent retention, and geographic expansion, though challenges such as cultural fit and client conflicts remain significant barriers to some cross-border mergers.
The increase in merger activity reflects a strategic response to the evolving demands of the legal market. Firms are seeking to enhance their capabilities, expand their geographic reach, and improve financial performance through consolidation. This trend is likely to continue as firms navigate the competitive landscape and strive to meet the complex needs of their clients.