Current market conditions are driving high levels of management activity as an increasing number of firms assess merger possibilities, whether strategic, defensive or opportunist.
Ironically, while the driving factors behind a merger are to encourage growth and maintain profits, the end product can all too easily bring the opposite results: a financially unstable firm with a confused identity which sees its clients abandoning it at speed. The reason? Recent experience suggests that law firms are neglecting to perform the necessary due diligence on the firm with which they intend to merge. Some firms are failing to perform any due diligence at all.
