Law Firms Pursue Growth Through Mergers in Emerging Markets
Increasing Trend of Expanding in Secondary Markets
Regional law firms are increasingly turning to mid-sized cities for expansion, bypassing traditional legal hubs like New York and Chicago. Data from Fairfax Associates indicates that around 60% of mergers completed in the first three quarters of 2024 involved firms expanding into secondary markets like Denver, Seattle, and Las Vegas. Notable transactions in 2025, such as Womble Bond Dickinson’s acquisition of Phoenix-based Lewis Roca, reflect this emerging trend.
Merrick Benn, Womble’s incoming CEO, highlighted the firm’s strategy to target growth opportunities outside of top-tier cities, pointing to markets like Phoenix and Charlotte. These areas provide firms with a platform for expansion while avoiding the high operational costs of larger legal centers.
Competitive Advantages of Middle Markets
Secondary markets present regional law firms with a unique opportunity to establish dominance without the fierce competition that characterizes larger markets. Bruce MacEwen, a consultant with Adam Smith, Esq., observed that many top-tier firms, like Paul Weiss and Latham, have largely bypassed regions like Arizona and Colorado. Their expansion strategies focus more on cities rich in financial services and capital markets, sectors less prominent in these secondary markets.
Instead, mid-sized cities like Phoenix offer unique opportunities, especially in industries such as retail chain headquarters. Global firms that typically seek private equity and financial services clientele have little overlap with these markets, creating an opening for regional firms to establish a strong foothold.
Noteworthy Mergers in 2024 Drive Regional Expansion
Several law firms have pursued mergers in 2024 to bolster their presence in emerging markets. Kansas City-based Spencer Fane expanded into Utah and New Mexico and also completed a merger with Holley Driggs, which increased its footprint in Las Vegas by two-thirds. Fennemore Craig followed suit, acquiring 80 attorneys from the dissolving Denver firm Moye White in what marked its fourth merger of the year.
Other significant mergers include Womble’s acquisition of Lewis Roca, adding 221 lawyers, and Taft Stettinius & Hollister’s combination with Denver-based Sherman & Howard, which brought 125 new attorneys into the fold. Ballard Spahr expanded by merging with Lane Powell, adding new offices in Seattle, Portland, and Anchorage.
Cost Efficiency and Strategic Benefits in Mid-Sized Cities
The lower costs associated with secondary markets offer law firms a distinct advantage. Operating in cities like Phoenix, Denver, or Las Vegas allows firms to keep their rates competitive, which appeals to middle-market clients. Bruce MacEwen emphasized that firms in these markets can maintain middle-market billing rates while achieving greater profitability, a key consideration for firms looking to avoid the high cost structures of top-tier cities like New York and Los Angeles.
Taft Stettinius & Hollister’s chair, Robert Hicks, pointed out that their firm’s focus on practice areas like municipal bonds and finance complements their operations in Phoenix and Denver, aligning with their middle-market strategy. This focus has also kept them from expanding into more expensive legal centers like New York, where the firm’s business model would be less compatible.
Expansion into the Tech Sector
Ballard Spahr’s recent merger with Lane Powell opens new opportunities in the Pacific Northwest, a region with a rapidly growing tech sector. Firm chair Peter Michaud stressed the importance of expanding regionally while maintaining competitive pricing structures that resonate with clients in emerging markets. This growth strategy aims to capitalize on local industry trends, particularly in the tech sector.
Growing Appetite for Mergers
The number of regional firms seeking mergers as a pathway to growth has surged in recent years. Patrick Whalen, managing partner of Spencer Fane, noted that the firm has seen a rise in merger candidates over the past five years, reflecting a broader trend among firms to combine resources and expand their geographic reach. Mergers are increasingly viewed as a strategic tool for firms of all sizes to remain competitive in the evolving legal landscape.
The Appeal of Secondary Markets
The shift toward expanding in secondary markets is reshaping the legal industry. By focusing on mid-sized cities, regional firms can grow their practices without the intense competition and high operational costs of major legal centers. This strategic focus allows firms to build geographic diversity, tap into new industries, and strengthen their competitive edge in emerging markets.
