M&A Boom & Law Firms - The Tragedy of Answered Prayers

 The presence and power of antitrust zealot at the FTC Lina Khan sucked the life out of dealmaking. But she will be gone and, if confirmed, Andrew Ferguson could restore that lucrative business activity. To use the cliche, a rising tide lifts all boats.

But the ones getting a really major lift will be the law firms. Bloomberg Law News observes:

"The new Trump administration is primed to usher in a more business-friendly approach to mergers and acquisitions, boosting a key practice area for many top law firms."

The top players in the M&A legal box are:

1. Cravath, Swaine, & Moore LLP
2. Davis Polk & Wardwell LLP
3. Kirkland & Ellis LLP
4. Latham & Watkins LLP
5. Paul, Weiss, Rifkind, Wharton, & Garrison LLP
6. Simpson, Thatcher & Bartlett LLP
7. Skadden, Arps, Slate, Meagher & Flom LLP
8. Cleary Gottlieb Steen & Hamilton
9. Debevoise & Plimpton LLP
10. Shearman & Sterling LLP

 But much of this could unravel as a version of Saint Teresa of Avila's warning about the tragedy of answered prayers. More tears are shed, the saint noticed, over answered prayers than unanswered ones. 

Truman Capote might have used that title - "Answered Prayers" - for his unfinished novel because it might have captured his own personal ordeal. 

An unloved misfit from nowhere Capote might have prayed to be accepted, especially into the prestigious establishment. And that he was. His prayer had been answered but was it at the expense of his own sense of his worth? Did the in-crowd transform this literary genius into their personal court jester and comforter-in-chief? Capote likely was raging. It wasn't a friendship of equals. 

The surge in opportunity in law firms from more dealmaking could set in motion so many negatives. 

At the top of the list is which partners get the biggest pieces of the action from the increased profits. Already there is tension in law firms about the wide spreads for what some equity partners receive and some don't. I have a hunch: If you're not a star you become well-aware that you are less-than, even if a partner. Like Capote, you could be raging.

In addition, those in the non-equity tier could rise up because they are shut out from profits. That, in itself, could set off the idea of unionizing. On professional anonymous network Fishbowl, here is how that is put:

"If big law associates had a union we would have never let this non equity partner thing take hold. They have managed to move the carrot further down the road extracting max value from those who are good and neurotic over achievers but they have no plan of ever giving equity. Stroke of evil genius.

"We 100% need a union. Let me know when the first meeting is."

No longer unthinkable is the unionizing of professional services. It's already happened at Wells Fargo.

Another trouble spot is likely to develop in which law firms capture the most market share. Those not making a splash could come across as fading entities. Obviously, the game has been ramped up. Some law firms not in the loop for the biggest deals could suffer a branding falloff. 

And how about the extreme work demands on junior lawyers? Multiple all-nighters could become standard. This abundance of assignments could answer their prayers about making their quota for billable hours. However, the tradeoff in WLB, if that ever existed in the sector, could be brutal. Will they, along with their NEP bros, go for unionizing?

So, 2025 could be a pivotal year for large law firms with prominent practices in M&A. How human beings navigate that onset of tremendous opportunity could change how those firms manage themselves. That could go down in history as "Uprising of the OverAchievers" or "When the non-owners went on strike during the blockbuster M&A deal."

Affordable Career Coach Jane Genova provides end-to-end career services, ranging from diagnosis of the challenges and fix-it strategies to preparation of resume/cover letters/LinkedIn profiles and how to gain control of an interview. I specialize in over-50 work issues. My edge is a background in marketing communications. For a confidential complimentary consultation please text/phone 203-468-8579 or email janegenova374@gmail.com. Remote and in-person.