New data from merger-tracker Fairfax Associates indicates that law firm consolidations in the U.S. are accelerating in 2025, outpacing the pace set in 2024. As of early October, Fairfax reported that 47 mergers had closed by the end of the third quarter, surpassing the 43 mergers recorded during the same period in 2024. This uptick signals a structural shift in the legal industry, particularly within Big Law, as law firms continue to adapt to evolving market dynamics.
Several factors are driving this trend, including rising overhead costs, intensified competition for talent, and the growing demand from clients for full-service global legal platforms. One notable example is the merger between McDermott Will & Emery and Schulte Roth & Zabel, which created a combined firm with approximately 1,750 lawyers across more than 20 offices. This merger reflects a broader trend of firms merging to strengthen their market position and offer clients a wider range of services on a global scale.
From a corporate-law perspective, these mergers are reshaping not only the structures of the firms involved but also their compensation models, regional reach, and strategic alignment. Firms increasingly emphasize “scale, specialization, and strategic alignment” as key rationales for mergers, rather than simply focusing on cost-synergies. As law firms seek to adapt to the demands of modern clients, many are looking to enhance their capabilities in specific practice areas and expand their geographical footprint to remain competitive.
For corporate clients and litigators, the ongoing wave of consolidation presents both opportunities and challenges. On the one hand, these mergers may lead to more collaborative models, where firms can leverage their combined expertise and resources to handle complex, multi-jurisdictional matters. On the other hand, these combinations may raise concerns about cultural integration, potential conflicts between client mandates, and the risk of talent flight. Law firms undergoing mergers will need to address these challenges by aligning their leadership teams, integrating compensation systems, and ensuring the retention of key partners to preserve the value of the merger.
Given the rapid pace of change in the legal industry, corporate-counsel teams should closely monitor these developments as part of their broader legal-supply-chain strategy. The consolidation trend is reshaping the competitive landscape for legal services, and staying informed about new merger activity is critical for businesses looking to maintain strong, cost-effective legal relationships. The increasing consolidation of law firms reflects the need for greater scale and specialization in a legal market that is becoming more global and complex. For firms, clients, and in-house counsel alike, these shifts represent both an opportunity and a challenge in adapting to an evolving legal-services environment.
