Taft Stettinius & Hollister to Merge with Sherman & Howard, Expanding Westward

In a significant development in the legal industry, Taft Stettinius & Hollister has announced its merger with Denver-based Sherman & Howard. This strategic move, set to take effect on January 1, 2024, marks another step in the ongoing consolidation trend within the legal sector.

The merger will bring together Taft's 925 lawyers with Sherman & Howard's 125 attorneys, expanding Taft's presence into eight new offices across the Mountain West region. This expansion aligns with the firm's growth strategy, which has seen six mergers over the past 16 years.

The combined entity projects 2024 revenues of $810 million, highlighting the significant scale of this merger. This financial projection underscores the potential impact of the consolidation on the firms' market position and resources.

Taft Stettinius & Hollister, founded in 1885 in Cincinnati, Ohio, has a rich history, including connections to prominent figures such as Robert A. Taft, son of President William Howard Taft. The firm has been strategically expanding its footprint, with its most recent merger in 2022 involving the 120-lawyer Michigan firm Jaffe Raitt Heuer & Weiss.

Sherman & Howard, established in 1892 in Denver, Colorado, brings its own legacy of growth to the table, having completed four mergers in the past 17 years. The firm's strong presence in the Mountain West region, which typically includes states like Colorado, Utah, Wyoming, and Montana, complements Taft's Midwest and Washington, D.C. offices.

This merger is part of a broader trend in the legal industry, with several significant combinations announced in September 2023 alone. Other notable mergers include Womble Bond Dickinson with Lewis Roca Rothgerber Christie, Troutman Pepper Hamilton Sanders with Locke Lord, and Ballard Spahr with Lane Powell.

The legal market has been experiencing increased consolidation, driven by firms seeking rapid growth and expanded capabilities. According to consultancy Fairfax Associates, completed mergers through the first half of 2023 exceeded the same period for each year since 2020, indicating an acceleration of this trend.

Law firm mergers are often motivated by the desire to expand geographic reach and practice areas. Larger firms typically benefit from increased resources for technology investments and specialized practices. However, these consolidations can also present challenges, such as potential conflicts of interest and the need for organizational restructuring.

The legal industry has been facing pressure to innovate and improve efficiency, partly in response to competition from alternative legal service providers. Many firms are also expanding their pro bono and social responsibility initiatives, reflecting changing priorities in the legal profession.

As the legal landscape continues to evolve, firms like Taft Stettinius & Hollister and Sherman & Howard are positioning themselves to meet the changing demands of clients and the market. The success of this merger will likely be closely watched by others in the industry as a potential model for future consolidations.