In a significant development for the legal industry, Lathrop GPM LLP has announced its merger with Silicon Valley-based Hopkins Carley. This consolidation, set to take effect on October 1, 2024, will result in a combined firm of 360 attorneys with an estimated annual revenue of $250 million.
The merger represents a strategic move for Lathrop GPM, founded in Kansas City in 1873, to expand its presence into the vibrant Northern California market. By absorbing Hopkins Carley, established in San Jose in 1968, Lathrop GPM will gain two offices in the region and 62 additional lawyers.
Cameron Garrison, managing partner and executive committee chair of Lathrop GPM, expressed optimism about the merger, citing the firm's previous successful combination in January 2020 between Midwestern firms Lathrop Gage and Gray Plant Mooty. The new merger is expected to bolster Lathrop GPM's private client services group and real estate practice, among other areas.
The expansion into Northern California is particularly noteworthy given the region's high concentration of tech companies, startups, and Fortune 500 corporations. This move positions Lathrop GPM to better serve clients in one of the most dynamic and competitive legal markets in the United States.
Jennifer Johnson, managing shareholder at Hopkins Carley, highlighted the benefits of joining a national firm, stating that the merger "puts us on the map coast-to-coast." This expansion aligns with the trend of law firms seeking to broaden their geographic reach and practice areas through strategic combinations.
The legal industry has witnessed an uptick in mergers during the first half of 2024. According to data from Fairfax Associates, 29 law firm mergers were finalized in this period, slightly up from 28 deals in the same period of 2023. This trend reflects the ongoing consolidation in the legal sector, as firms seek to enhance their competitive edge and expand their service offerings.
Other notable mergers in 2024 include Milwaukee-founded Michael Best & Friedrich's combination with a small Los Angeles firm. Additionally, Troutman Pepper Hamilton Sanders and Locke Lord have been in discussions about a potential merger, which, if finalized, would be the largest law firm combination announced this year.
The legal landscape continues to evolve, with firms adapting to new challenges and opportunities. The COVID-19 pandemic has accelerated trends in remote work, while technological advancements are reshaping how legal services are delivered. As law firms navigate these changes, mergers and acquisitions remain a key strategy for growth and market positioning.
As Lathrop GPM and Hopkins Carley prepare for their October 1 integration, the legal community will be watching closely to see how this merger impacts the competitive dynamics in Silicon Valley and beyond. With over 1.3 million active lawyers in the US as of 2023, according to the American Bar Association, the pressure to differentiate and expand remains a driving force in the legal industry's ongoing transformation.
"The combination was a tremendous success."
This merger underscores the importance of strategic growth in an increasingly competitive legal market. As firms like Lathrop GPM expand their footprint, they must balance the benefits of increased scale with the challenges of integrating different firm cultures and managing potential conflicts of interest. The success of this merger will likely be measured not just in terms of revenue growth, but also in the firm's ability to leverage its expanded capabilities to better serve clients across its national network of 13 offices.