With a mass exodus afoot and rising questions on its long-term technique and development trajectory, rumors of Cadwalader Wickersham & Taft’s reported curiosity in combining with one other agency started to unfold, and now one of many agency’s potential suitors has been named. This might be some of the consequential Biglaw mergers this yr.
As reported by the American Lawyer, Cadwalader has been in merger talks with Atlanta-based Alston & Fowl, with no less than two different corporations chatting up the distressed Wall Road agency. Why would this specific merger make sense? Am Legislation has extra particulars:
In line with Am Legislation 100 knowledge, Cadwalader and Alston have comparable income per lawyer and earnings per fairness accomplice—a optimistic signal for mixture symmetry. Alston introduced in $1.331 billion in income in 2024, barely greater than double Cadwalader’s $638.2 million. In RPL, Alston generated $1.424 million whereas Cadwalader earned $1.495 million, a distinction of solely $70,000. In the meantime, Alston’s common PEP was $4.086 million final yr, whereas Cadwalader’s was $3.7 million, a distinction of about $300,000.
A possible tie-up between the 2 corporations wouldn’t solely mix Cadwalader’s and Alston’s core practices in banking and finance, however develop each corporations’ nationwide footprints and create a extra diversified platform. However will the 2 corporations tie the knot?
Cadwalader as soon as once more issued a press release, not on a mixture with Alston particularly, noting that it has certainly been approached for merger discussions by top-tier corporations, with a spokesperson occurring to speak up the agency’s strengths and optimistic attributes throughout this extremely publicized spherical of velocity relationship. “The agency is in a really robust monetary place and stays assured in our standalone technique. We’re on monitor to have among the finest years in our 233-year historical past, projecting over $600M in income, and we count on equally substantial income and robust profitability in 2026,” the spokesperson mentioned. “We’ve got added over 75 legal professionals up to now this yr. Cadwalader stays a really engaging vacation spot for elite degree legal professionals to thrive.”
If the cope with Alston & Fowl does transfer ahead, it wouldn’t simply reshape Cadwalader, however it might sign one more main shift in Biglaw’s consolidation period. If nothing else, the truth that Cadwalader could also be critically entertaining merger talks reveals simply how a lot the market has modified, and the way few corporations can afford to face nonetheless. And if the deal falls aside? The truth that Cadwalader is even on the desk tells us every little thing we have to learn about the place the agency could also be headed.
Alston & Fowl in Midst of Merger Talks with Cadwalader [American Lawyer]
Earlier: Merger Momentum Builds At Cadwalader As The Agency’s Woes Deepen
Cadwalader’s Mass Exodus Continues: Almost 40 Legal professionals Leap To High 50 Biglaw Agency In Follow Group Raid
Wall Road’s Oldest Biglaw Agency Appoints Co-Managing Accomplice Amid Mass Exits And Merger Rumors
Staci Zaretsky is the managing editor of Above the Legislation, the place she’s labored since 2011. She’d love to listen to from you, so please be at liberty to electronic mail her with any suggestions, questions, feedback, or critiques. You may comply with her on Bluesky, X/Twitter, and Threads, or join together with her on LinkedIn.
