Getting the jitters

As Berwin Leighton and Paisner & Co prepare formally to tie the knot and embark on marital bliss this spring, attention again turns on what the...As Berwin Leighton and Paisner & Co prepare formally to tie the knot and embark on marital bliss this spring, attention again turns on what the legal specialist press often describes as merger mania.

Will the creation of Berwin Leighton Paisner now one of the countrys top 20 practices in terms of size with 116 partners cause the gates to open and result in a flood of medium-sized City firms rushing to the alter? It is not difficult to see the logic behind this type of union.

City practices in the 30- to 60-partner bracket have for the last few years been feeling the squeeze.

Bearing down on them from above has been pressure from the magic circle, and by extension the top 10 to 20, which have been forming international alliances and mergers.

Applying pressure from below has been the niche practices which are small on partnership numbers but big on specialist expertise.

Between them much of the blue chip work has been hoovered up.

Add to the mix the high-quality service but lower fees provided by the larger provincial-based firms and there goes the middle tier of commercial work.

Medium-sized firms have always maintained that their sector would survive by offering leaner more focused services.

Clearly, that sector is now getting the jitters and might be realising that to play with the international big boys you have got to have a large domestic base.