And a Warning for Clients in BigLaw Megamergers

Ben Thomson, LawFuel contributing writer

Hogan Lovells and Cadwalader have agreed to merge into a firm with about three thousand one hundred lawyers and 3.6 Bn in revenue, a scale play that will push the combined shop into the global top five and it will also force clients to revisit conflicts, pricing and who really controls their documents.

But the mega-merger raises the question of what clients should demand when firms chase size with a major merger like this?

The merger drags every BigLaw COO into the same conversation about scale, private credit, and AI spend. But it also raises some of those key questions for clients to consider.

What Happened

The firms announced an agreement to combine, with leadership saying the new outfit will rank among the largest by revenue once partners vote and integration completes next year.

Reports across the trade and business press (see below) call it the biggest law firm combination to date.

The Key Drivers in Big Law Mergers

Scale buys coverage, capital and AI spend, but it also compresses the field in finance heavy work where conflicts already choke choices. New York access has long been a missing piece for Hogan Lovells.

Cadwalader brings that heritage along with structured finance depth, even as insiders admit the Wall Street name has taken hits after partner exits and a hard season.

Consolidation within the law industry is being accelerated by several structural shifts that are occurring in the law and new mergers occurring in the biglaw space. On Monday, Chicago-founded Winston & Strawn and UK firm Taylor Wessing said they expect to combine in May while UK-based Ashurst and Perkins Coie said last month that they plan to merge in the third quarter of next year.

The GenAI Arms Race: Significant increases in operational costs due to generative AI adoption are driving a need for greater scale to spread technology investments across a larger lawyer base.
Transatlantic Dominance: Mid-sized and large UK/European firms are merging with U.S. counterparts to gain access to the lucrative U.S. market and compete with the “global elite”.
Market Share War: Profitable firms are pursuing a “strong growth mindset” to capture market share as expense growth outpaces organic demand for legal services.
Private Equity Influence: Record levels of undeployed private equity capital (approx. $2 trillion) are expected to fuel deal-making and “bolt-on” acquisitions.

What the numbers say

The topline is three point six billion revenue and roughly three thousand one hundred lawyers across the Americas, EMEA and APAC. That’s a very large firm with indications it will be in the top five by revenue worldwide, with corporate and finance getting the spotlight.

Cadwalader’s co-managing partner Pat Quinn has said the merger would make it part of “one of the world’s most formidable legal platforms.” No doubt. And Hogan Lovells Cadwalader, as the new firm will be called, is set to enter the pantheon of biglaw firms wielding biglaw clout globally.

Timing points to a partner vote in early2026and a go live by mid year.

The Uncomfortable Backstory

Coverage has not been shy about why Cadwalader is at the altar. The fact is that Cadwalader Wickersham & Taft, despite its fine 233 year history, had been declining in slow motion since the 2008 global financial crisis due to its inability to adopt to the new reality in the legal business where lateral hiring is a key to firm survival.

The firm has seen talent outflows, with a major 37-person team departing for rival Orricks in October, as well as a rough pivot from securitisation to private credit, and reputational loss after a controversial one hundred million pro bono pledge made in a past political cycle have all featured in market write ups.

For clients there is the risk for key legal work to ensure control over the work in terms of pricing, control of data and other issues – check the ‘mega firm checklist’ below –

What Lawyers Should do Next

Map conflicts now on live matters where both firms are credible bidders.
Demand a document stack plan that covers templates, opinions and data custody during integration.
Tie any rate increases to cycle time, staffing and verified AI gains rather than to logo inflation.
Ask for named partner accountability on your largest workstream and keep it in writing.

Market view from the Trades

Above the Law calls it a historic combination and notes that momentum toward consolidation will spill into twenty twenty six.

Bloomberg Law frames it as the largest law firm merger yet, with leadership angling for a top five seat and Cadwalader losing it attempt to remain independent.

The Lawyer confirmed the 3.6 Bn figure and the headline ranking.

The Financial Times sets a mid twenty twenty six target and underlines that Hogan Lovells is the dominant partner. Financial Times+4Above the Law+4Above the Law+4

Client Checklist for the Merger Season

Conflicts and independence
Ask for a written conflicts roadmap by matter type and jurisdiction.
Pricing and productivity
Require a side letter that links any January rate card to measurable improvements in turnaround and error rates.
AI claims audit
If the pitch leans on AI, ask for the validation protocol and a named lawyer who signs off.
Data and templates
Confirm who owns document versions and models trained on your work product during and after integration.

FAQ

Q What is the immediate impact for clients
A Expect new conflicts on finance and restructuring files and a harder fight for panel spots in New York and London. Reuters

Q Will rates simply go up
A Only if buyers let them. Tie any increase to service level commitments and real time metrics on delivery and accuracy. Bloomberg Law

Q What could still derail the merger
A Partner votes, integration politics and key client conflicts. The timeline runs into twenty twenty six which leaves room for second thoughts. Financial Times