Levenfeld Pearlstein Launches Practice Area for Law Firm M&A and Related Services

Levenfeld Pearlstein, LLC (“LP”) is pleased to announce the formation of a dedicated Law Firms Practice Area, led by Partners Russell I. Shapiro, Douglas G. Gruener, and Evan M. Wild.  The formalization of this group is in response to the growing demand for transactional counsel in law firm M&A transactions, especially those that implement a managed services organization (“MSO”) structure.

“There is growing momentum for the use of MSO structures in law firm transactions, in which some or all of the law firm’s functions, other than the practice of law, are effectively outsourced to a non-law firm MSO entity that private investors can invest in or acquire.  We are intimately familiar with this type of structure because of its prevalence in accounting firm M&A,” said Shapiro, who is the head of LP’s preeminent Accounting Firms Practice Area, which has closed more than 100 accounting firm M&A transactions in recent years.

“Law firm M&A is a natural fit for our firm,” added Gruener, who is the head of LP’s Chambers-ranked Litigation Finance Practice Area, which represents both investors and law firms in transactions that inject new capital into law firms.  “Our work over many years in the litigation finance space has positioned us at the intersection of law and finance, and that has built our experience in helping to unlock outside capital for law firms while maintaining compliance with the rules of legal ethics.  In many respects, law firm M&A via MSO structures is poised to become another chapter in that story.  For law firms, it opens up innovation opportunities that inherently require careful structuring for legal ethics, and for private fund managers and strategic investors, it creates attractive investment opportunities.”

Drawing upon its extensive experience in transactions involving professional services firms, LP is well-prepared to serve both investors and law firms in M&A transactions.  LP’s experience in this regard is not limited to MSO structures, as LP has also acted as counsel for traditional mergers between law firms.  LP’s offerings to law firms also include expertise in partnership agreements, whether to memorialize the terms of an MSO to be jointly owned by the law firm partners and private investors, or to facilitate new terms among a law firm’s partners either before or after an M&A transaction.

“LP’s expertise in M&A, MSO structures, and law firm transactions brings a powerful skillset to the table for law firm M&A and related matters,” said Wild, whose resume includes closing some of the most noteworthy accounting firm M&A transactions in the nation.  “We are actively working on several law firm M&A transactions, and based on the acquisitive activity we have seen in the accounting industry over the past several years, this feels like a natural progression.  This has the potential to reshape the legal industry, and for legal counsel that is positioned to handle these transactions both expertly and efficiently, LP is at the forefront.”