Dentons, a global behemoth just coming off major expansions in South Korea and Africa, set its sights on America, launching Operation Golden Spike and picking up two new firms and coverage in a even more markets.
Bingham Greenebaum brings 176 lawyers in Indianapolis (and a couple of smaller Indiana cities), Cincinnati, and Louisville and Lexington. Cohen & Grigsby is adding 140-plus in Pittsburgh, Harrisburg, and Naples, Florida.
The expansion brings another 300 attorneys under the Dentons umbrella which would sound like a lot to any firm other than Dentons, where 300 lawyers is a rounding error. Not that Dentons intends to stop at 300 new lawyers. American Lawyer reports that Dentons is talking to two more firms this week and another four by Thanksgiving.
Most interesting about this expansion is its unique character. It’s not so much a merger as it is a completely new animal. The tie-up involves the a “dual partnership,” allowing the firms to carry on while their partners also become Dentons partners. The theory is that betting on firms that are already successful doing what they’re doing is better than trying to recast a winning culture. But how do people get paid?
The economics are based on the premise that half of a firm’s profit, or margin, derives from originating the work. When different firms under the Dentons U.S. umbrella share work, in a process that will be guided by the leaders of the firm’s national practice groups, the firm that brought in the client will earn half the margin, while the firm handling the matter will earn the other half.
When all is said and done, Dentons aims to have 1,100 attorneys in the U.S.
“Clients are seeking seamless service and one-stop shopping,” said Dentons global CEO Elliott Portnoy. “They simply can’t get that today in all of the markets that matter to their business in the U.S.”
Once again, the leadership at Dentons seems to understand the business model of a lot of prolific businesses and while they may object to being compared to Applebees or Starbucks, in reality they’re following the precise business philosophy that made those institutions into massive successes. The secret to any company with multiple outposts is providing a marker of familiar quality in a new landscape. When a Dentons client in New York needs an attorney anywhere from Lexington to London, they now know who to call to get the same service they’re accustomed to.
We talk a lot about client loyalty is on the decline, but don’t really dig into why. Clients may not see the value proposition in blindly sticking with the firms that used to handle all their business but that’s not necessarily an indication that the client wants to be juggling multiple firms, just that they’re no longer asking hard questions about what firm is offering them the best fit. Dentons seems to understand that offering truly global coverage for markets large and small offers clients something that others don’t… and a new avenue to locking up a client’s whole range of business.
Dentons Combines With Two US Firms in One Go, Launching New American Strategy [American Lawyer]
Earlier: Biglaw Chair Slams The Traditional Law Firm Model
Massive Law Firm To Become Even More Massiver
Ever-Growing Dentons Has Expansion Down To A Science
Joe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.