Why are BigLaw firms acquiring boutiques?

In that conversation, he noted that “it came very clear to me not long after I stepped into the role that the kind of macro environment was changing, and our clients’ expectations were changing”.

“Law was becoming increasingly global in terms of how firms had to be positioned, the investments that firms needed to make, and the kind of balance sheet that you needed to make those investments,” he said

It eventually became “very clear” to Greene, and the HDY partnership, that the firm needed to look beyond Australia, “and that the way the market was evolving and the way our practise was evolving and at that stage we had an international practise”. The-then firm had partners engaged in cross-border insolvency and corporate mandates, and a “burgeoning” global practice was something the partners wanted to “double down on”.

Now, more than seven years on from that monumental merging of HDY under NRF’s banner, there is a growing trends of BigLaw players bringing boutique practices under their national umbrellas. The reasons for such expansion by the former will, of course, vary from firm to firm – but, similar themes of globalised or nationalised legal service delivery remain.

Mergers, acquisitions, and expansions

In recent years, acquisitions of boutique practices, or absorbing those firms under a BigLaw banner, have been happening across the country.

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Most recently, HWL Ebsworth snapped up Botten Levinson, and six of its principals; in the same month, Moray & Agnew acquired Greenwoods Law in Cairns; Chamberlains acquired Handz Law in Brisbane in March; Sparke Helmore brought strengthen its presence in the Queensland capital by bringing Woods Price Lawyers under its banner in April; and HopgoodGanim joined forces with Butlers Lawyers and Notaries, broadening its offering out west, in August of last year.

Prior to this, Thomson Geer merged with Perth-based boutique Tottle Partners, bolstering the former’s presence in WA, in May 2024; Hall & Wilcox took the team of 30, including seven partners, from investment funds and real estate firm McMahon Clarke in September 2023, coming under the national firm’s banner; Bayston Group merged with national player FCW Lawyers in late 2022; Hamilton Locke acquired Newcastle-based boutique Morrissey Law + Advisory in December 2022; Wotton + Kearney snapped up Ball + Partners in November of that year.

Elsewhere, Mills Oakley acquired a string of boutique practices in 2022, which Lawyers Weekly covered in detail here.

In conversation with Lawyers Weekly, the heads of three of those BigLaw firms – Hall & Wilcox chief executive partner Graydon Dowd, Sparke Helmore national managing partner Andrew White, and Moray & Agnew national managing partner Ian Denham – discussed the vision behind their firms’ respective acquisitions, and what those moves say about the state of the legal services marketplace Down Under.

Combining a boutique practice with a major firm, Dowd explained, offers added depth and expertise, a broader service offering and an expanded geographical footprint, all of which benefits clients.

Hall & Wilcox already had a strong investment funds practice, and adding the McMahon Clarke rank-and-file to the national firm’s capabilities “allows us to become the undisputed market leader in investment funds nationally”, as well as expand its Brisbane-based commercial practice, “and position ourselves as a leading firm in the Brisbane and Queensland market”.

Denham made similar remarks, noting that its acquisition of Greenwoods “was an opportune move to add further depth to the existing services we provide in far north Queensland”, such as property, commercial, wills and estates.

“Boutique firms bring highly specialised knowledge and strong community ties which are invaluable in regional markets,” he said.

White added: “The partners and staff from the smaller firms we have absorbed contribute enormously to the achievement of broader strategic objectives of the firm. As with all our associations with new partners, we focus on their ability to provide fabulous service to clients and their cultural alignment with the firm.”

“Our recent smaller firm associations have achieved those objectives in spades,” he said.

For all three firm heads, recent acquisitions have provided confidence about their firms’ market position moving forward, as practices nationwide navigate myriad challenges, from the economic and geopolitical to cultural and technological.

Reasons for growth

Denham said that the integration of boutique firms into national practices reflects a strategic evolution in how legal services are delivered across Australia.

“Clients are increasingly seeking comprehensive and seamless legal support that spans jurisdictions and practice areas. By bringing boutique firms under our national umbrella, we’re able to offer the depth of local expertise alongside the scale and infrastructure of a full-service firm,” he said.

“For us, it’s not just about growth, it’s about meeting the differing needs of today’s clients. We will continue to acquire/and or grow in areas we have identified as being of strategic significance for our clients and our capabilities.”

Absorbing boutique practices, Dowd said in support, “allows a BigLaw firm to add specialist expertise, or deepen and broaden existing expertise; to expand into new practice areas it doesn’t currently operate in; to acquire a specific client base, or enhance its existing client base; to boost talent; or to expand its market or geographical presence, or break into a niche market”.

From the perspective of the boutique firm, he went on, “sometimes it is preferable for them to combine with a BigLaw practice so they can better harness the opportunities that arise from economies of scale, a stronger brand and profile and allowing clients to have access to a broader range of practice areas and expertise”.

Hall & Wilcox, Dowd said, “will continue to look for opportunities to grow our firm, particularly in the areas where we are established and have a competitive advantage, including our public sector, investment and property funds and private clients practices”.

White said that, for Sparke Helmore, “it is not ‘growth for growth’s sake’”.

“Our growth plans are all aimed at securing the optimum scale, sustainability, and appeal. Scale is to ensure that we have sufficient financial capacity to embrace process improvement (including automation and embracing AI where that is appropriate in ways that are appropriate) and to provide the best service and support to our lawyers and partners,” he said.

“However, the preservation of our great culture is most important and we guard that very carefully. We are a very collaborative and caring place. We believe in kindness, hard work, commitment to clients, our values and authenticity.”

From the perspective of the larger firm, White went on, “I can say that we focus on the capability of people to bring brilliant client service and be aligned with our down to earth, authentic culture”.

And, “from the smaller firms’ perspective, the larger platform offers the ability to access the best quality support structures such as first-class IT (including cyber security etc.), people and culture support, premises and office facilities, knowledge management, finance, process improvement, and the ability to embrace AI into legal practice in a way that is safe and appropriate”.

Looking ahead

The trend of BigLaw firms acquiring boutiques, Dowd suggested, is “likely to continue”, which he said reflects the fact that the Australian legal market is “very fragmented and diversified”.

“There are abundant opportunities for consolidation, particularly given the shape and focuses of the large global firms are changing due to competitive forces and pressure on rates,” he said.

Our national market, Dowd concluded, is undergoing major change, “and this will continue for the foreseeable future”.

“A number of forces are at play that will challenge many firms, not least of all the advent and entrenchment of AI into firms’ strategies. We will maintain our focus on our strengths and our emphasis on smarter law, as this will ensure we continue to provide the best services to our clients,” he said.

Denham backed this, noting that the marketplace at this critical juncture “continues to be highly competitive, but also full of opportunity”.

“We’re seeing increased client expectations about the services we provide and the ways in which they are delivered especially in sectors like insurance and government,” he said.