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Biglaw mergers have been all the rage in 2023, and some firms have been approaching the prospect from seats of power rather than desperation. One of those firms is Baker Botts, which is coming off of an extremely successful year. The firm — currently ranked at No. 64 on the latest Am Law 100 — managed to drive its revenue up by 4% last year to $752.2 million (its second-highest ever) while increasing its revenue per lawyer by 12%.
Baker Botts was once a potential suitor for struggling Shearman but those talks were fruitless. In a past Am Law interview, managing partner John Martin said that while Baker Botts “never comments on market speculation or rumors,” the firm will be “opportunistic” and “open-minded to ideas on how to strengthen the firm.”
The American Lawyer reached out to Baker Botts for comment on its potential merger plans. Here’s a statement provided by the firm:
“As one of only four firms to hit double-digit RPL growth in 2022 and after recording the second-highest growth in PEP of any Am Law 100 firm, we continue to build on our record year, execute on our strategy, and strengthen our core value of professional excellence in representing clients, including those in the energy, technology and life sciences sectors.”
In 2022, Baker Botts saw its profits per equity partner rise by 28.3% — but at the same time, the firm watched its equity partner ranks fall by the same percentage. Martin was positive about this, noting that the firm’s PEP increase “is significant and reflects some continuous moves to enhance our leverage.” But is this attractive for a merger partner?
One individual familiar with the Texas market said a trickle of partner departures from Baker Botts has turned into a stream, and that could contribute to the firm’s willingness to think about a merger.
“If they are like most firms, they are probably spending a lot of time trying to attract laterals and groups, but probably aren’t happy with the progress, especially as they are losing people and teams they don’t want to lose,” the individual said.
Martin said that the firm has “particular interest in” increasing the attorney head count in the San Francisco Bay area and New York, while at the same time strengthening its home base in Texas, while giving some special attention to Washington, D.C., and London.
Do you know of any firms that are looking to tie the knot in 2023? Because Baker Botts seems to be ready, willing, and very eligible.
Is a Merger in Baker Botts’ Future? [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 Twitter or connect with her on LinkedIn.
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