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Sources: Akerman Senterfitt Nearing a Merger Deal With Wolf Block
Daily Business Review
May 16, 2008
Akerman Senterfitt is close to consummating a merger with a 300-lawyer Philadelphia-based firm that would broaden its national platform, according to sources familiar with the talks.
Akerman's executive committee could soon vote on the deal to combine Akerman with Wolf Block, said sources who asked not to be named.
Merger talks between the firms have been under way for weeks.
One roadblock in the discussions is Wolf Block's unfunded pension plan. Wolf Block wants Akerman to take over that financial liability, the sources said.
Midlevel attorneys at Akerman are reluctant to back the merger because of the financial liability it could cause them. One offer on the table entails a year-long probationary merger, after which the parties could back out, a source said.
The marriage of the firms would also give birth to a new name. A source said the combination would likely be called Akerman Wolf. That, too, is still being hashed out.
A senior shareholder at the firm, who spoke on condition of anonymity, confirmed that talks are progressing and that the pension plan is the major sticking point. The shareholder said a vote is not imminent but that he would support a merger with another large firm.
The shareholder said Akerman has been in talks with other firms, too.
Akerman and Wolf Block have little geographic overlap. Wolf Block is concentrated in the Northeast, while Akerman is predominantly a Florida firm with outposts in places like Washington and Los Angeles.
The merger would give the 12-office Akerman Senterfitt greater national reach, into such markets as Wilmington, Del.; Boston, New Jersey and Philadelphia. A deal would also buttress the firm's presence in New York.
"The resulting firm would have a very nice foot print," one source said.
Both firms have been aggressive about growing through mergers. While both saw groups of partners leave their ranks, both have also added attorneys.
Akerman Senterfitt has expanded its attorney roster from 432 lawyers in fiscal year 2006 to its current 500 attorneys, while Wolf Block grew its headcount by 4.5 percent in 2007 to 304 attorneys.
Wolf Block, which recently merged with Wilmington, Del.-based Oberly Jennings & Rhodunda, has actively sought other Am Law 200 law firms to merge with as part of its growth strategy. The firm's negotiations with Philadelphia-based Cozen O'Connor disintegrated last year.
Wolf Block's executive committee Chair Mark Alderman confirmed that the firm was in talks with Akerman Senterfitt earlier this year to The Legal Intelligencer, the Philadelphia affiliate of the <i>Daily Business Review</i>.
Neither Alderman nor Andrew Smulian, chair of Akerman Senterfitt, returned telephone calls for comment.
