The Numbers
Before we get to that, let’s look at what was reported about the merger (AFR 20/1/2012):
Freehills is gearing up for a vote on whether to merge with Herbert Smith. If approved, the merger is tipped for July 1. Freehills’ management is working out a proposal to put to the firm’s partnership about the deal… expected to involve combining the firms, most likely under a “Swiss Verein” equity structure.
Looking at the numbers, it appears that the move is a merger of equals, supporting the naming of Freehills in the rebranded firm. Both firms have similar revenue and partnership numbers. Freehills reported revenue of $510 million in FY 2010/11 while Herbert Smith reported revenue of approximately $560 million over the same period. Freehills has 197 partners, while Herbert Smith is reported to have over 250 partners, although that number is expected to drop prior to the merger.
It certainly sounds like the firms would make a nice fit for each other, but why merge?
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