The Brief:
While HSF and Ashurst chase US mergers, most of Australia’s mid & top-tiers are holding firm on independence.
Expert George Beaton says more will follow the merger trail, tipping partner profits and client demand as “irresistible forces.”
Everyone predicted Australia would go the way of London: global consolidation, cross-border mergers, the lot.
And sure, we’ve seen HSF and Ashurst choose the merger route. But for the most part, it hasn’t happened.
The remainder of the top-tiers, Gilbert + Tobin, Allens, Mallesons, Corrs Chambers Westgarth, MinterEllison and Clayton Utz, have all stayed independent while still winning the country’s biggest M&A, disputes and infrastructure mandates.
The same is true of mid-tiers. The likes of Hall & Wilcox, HWLE, Gadens have all stayed independent. In fact, Lander & Rogers’ Chief Executive Partner says its independence is a genuine edge.
“What’s been unique about us is that we’ve never merged… It allows us to shape the decisions that will impact our future through people who are here in Australia, who understand our clients, understand our people and understand the Australian market. It helps us move more quickly if we need to, keeps us close to our people and keeps us close to our clients”, Proietto told Lawyerly.
So, why go it alone?
Partner autonomy is a recurring pull.
Independent firms let partners make calls fast, without layers of global bureaucracy, and juniors often get a cleaner shot at partnership too. Over the past two years, Clyde & Co, Squire Patton Boggs, DLA Piper, K&L Gates have all lost partners to independents like Sparke Helmore, Gilbert + Tobin, Mills Oakley, Colin Biggers & Paisley, HWLE and Hamilton Locke.
Then there’s the economics. Foreign firms landing in Australia often inherit Wall Street cost structures and leverage models. But Australia’s premium end is small — there are only so many top-tier deals and clients to go around, and most of them are already locked in by domestic firms with sticky, long-standing relationships.
The casualty list backs it up. Hogan Lovells shut its Australian office last year before doubling down on the US via the Cadwalader tie-up. DWF closed three Australian offices back in 2021.
Not everyone thinks independence holds forever, though.
Ashurst and HSF Kramer have both leaned into international tie-ups, bringing US profit margins and billing culture into the mix.
And last month, Beaton Research’s George Beaton thinks more will follow. “Our view is that further ‘mergers’ are more likely than not. Partner profits and clients’ demands are pretty irresistible forces”.
He flagged Allens, Clayton Utz, MinterEllison and Mallesons as firms that could be tempted by the pull of higher partner profits, and client demand for one-firm, multi-location service.
But for now, looks like the independents are holding their ground.