A&O Shearman, McDermott-Schulte and the new rules of the board

The deal that has dominated the headlines is, without question, the creation of A&O Shearman, which united Allen & Overy with Shearman & Sterling, forming a firm with 4,000 lawyers, 48 offices and more than 3.4 billion dollars in revenue. Close behind is the McDermott Will & Schulte merger which, without expanding into new jurisdictions, has achieved a surgical and effective combination: higher density in premium markets, stronger positioning in hedge funds, private equity and financial regulation, and a clear identity.

In parallel, other large-scale integrations are materialising, such as Herbert Smith Freehills with Kramer Levin and Troutman Pepper with Locke Lord. All of them respond to the same pattern: anticipate, grow and reposition.

Spain is not standing still: the market is moving… or at least trying to

One of the rumours that generated the most noise in recent weeks was the potential merger between Ceca Magán and Ramón y Cajal Abogados. According to El Español, both firms had initiated exploratory conversations for a possible integration. The fit made sense: two mid-sized firms with complementary practices and the ambition to strengthen their position in an increasingly competitive market. Ceca Magán, for instance, grew 24% in 2024, reaching €24.9 million in revenue. Ramón y Cajal has not yet released its latest figures, but historically its turnover has hovered around €30 million annually. However, sources close to the process suggest that the deal will not proceed, for now. Even so, such movements —even if they do not materialise— send a clear signal: strategic reflection is already on the table in many partnership boards.

Private equity enters the scene

The transformation of the legal sector is also being driven from the outside. Private equity has entered legal structures with force, particularly in the UK and the United States, where alternative ownership models are already permitted. Firms such as Aprio and Radix Law have begun operating as Alternative Business Structures (ABS), a trend that will likely continue to grow.

What to expect between now and year-end

The second half of 2025 points towards tactical moderation: many firms prefer to close deals with effect from 1 January. But this does not mean inertia. What we will see is more selective, more deliberate, but equally ambitious, consolidation. Firms that have done their homework will be in a stronger position. Those that have not may find themselves out of the game.

The real question is: are you building a firm that leads… or one that merely resists?

Because the legal market is no longer measured in office square metres, but in adaptability, scale, value proposition and business vision. The firms that understand that the future does not wait are already positioning themselves. The rest will simply watch as others integrate, scale and capture the market.

Marc Gericó

Global Managing Partner