Bingham McCutchen, McKee Nelson to Merge on Aug. 1
Bingham McCutchen announced today that its firm leaders and those of McKee Nelson have signed a letter of intent to merge as of Aug. 1 under the Bingham McCutchen name.
“The opportunity for us to add McKee Nelson’s market-leading practices in financial institutions litigation, capital markets and tax is extraordinary,” Bingham McCutchen chairman Jay Zimmerman said in a press release. “These are quite simply some of the finest lawyers in the profession.” This is Bingham’s 10th merger in the firm’s last 15 years under Zimmerman, the release says. Bingham has 1,000 lawyers in 12 offices, and McKee Nelson has 120 lawyers in New York City and Washington, D.C.
The Am Law Daily reports that partners at both firms were informed of the merger this morning. It also projects that the firms’ combined revenue will likely top $900 million and points out that Bingham was one of the few big firms to show both revenue and profits per equity partner growth last year. McKee Nelson on the other hand, saw revenue drop 16 percent and profits per equity partner drip 15 percent, the Am Law Daily reports.
“McKee Nelson’s leaders will hold some positions of power at the combined firm, but Bingham’s management will clearly be in charge,” the Am Law Daily writes. McKee Nelson co-chief executive partner Reed Auerbach will be the only McKee Neslon higher-up on Bingham’s 12-lawyer management committee, and he will also manage the capital markets group, the Am Law Daily Reports. McKee Nelson co-founders William McKee and William Nelson will co-head the tax group.
Earlier this month, 11 lawyers left Bingham McCutchen for Morgan Lewis. And both firms have had made some layoffs in the last eight months. Bingham laid off 16 associates and 23 staff in March. McKee Nelson cut 17 associates and 15 staff in November , but the Am Law Daily reports that its numbers have been declining since 2006.
“It was really hard to maintain a collegial, supportive culture when we were downsizing,” Nelson told the Am Law Daily. “It was painful and it hurt.”
