Taft Stettinius & Hollister Expands with Sherman & Howard Merger
Introduction to Taft's Growth Strategy
U.S. law firm Taft Stettinius & Hollister has announced its merger with Sherman & Howard, a Denver-based firm. This deal, set to take effect on January 1, adds to the increasing trend of law firm consolidations across the industry. The merger will bring together Taft's 925 lawyers and Sherman & Howard's 125 attorneys, extending Taft’s reach into the Mountain West region.
The Financial Outlook of the Merger
With this new partnership, the combined projected revenue for Taft in 2024 is expected to reach $810 million. Taft, founded in Cincinnati, has been expanding steadily over the years through strategic mergers, and this latest deal is a significant part of its growth trajectory.
Recent Surge in Law Firm Mergers
September saw a wave of law firm mergers as firms seek to expand rapidly through consolidation. Notable mergers include Womble Bond Dickinson joining forces with Lewis Roca Rothgerber Christie, Troutman Pepper Hamilton Sanders combining with Locke Lord, and Ballard Spahr merging with Lane Powell. Industry consultants have noted that while the surge in mergers appears rapid, the timing is likely coincidental, reflecting a broader trend in the legal market. Data from consultancy Fairfax Associates indicates that completed mergers in the first half of 2024 have surpassed those from the same period in any year since 2020.
Taft’s Expansion Strategy and Past Mergers
Taft, which operates in the Midwest and Washington, D.C., has completed six mergers over the past 16 years, positioning itself as a significant player in the legal industry. The most recent merger before this was with Jaffe Raitt Heuer & Weiss, a 120-lawyer firm based in Michigan, in 2022. Taft's chairman and managing partner, Robert Hicks, said the firm is strategically targeting high-growth markets such as Denver and Phoenix, which offer favorable business conditions.
Future Markets for Taft's Growth
Looking ahead, Taft aims to expand further into new markets, particularly in Florida and major cities in the Northeast, including New York, Boston, and Philadelphia. Hicks stated that the firm is seeking middle-market firms in these regions to continue its expansion efforts.
Sherman & Howard’s Perspective on the Merger
Sherman & Howard's CEO, Stefan Stein, acknowledged that the firm faced challenges in competing for business due to its size. With the legal market in Denver and other areas becoming increasingly consolidated, Stein said the merger with Taft provides the broader and deeper expertise needed for long-term success. He emphasized that adapting to the changing industry landscape was essential for staying competitive.
