DLA Piper is considering plans for a full merger between the US and international arms of its business, Financial News has reported.
Since being formed out of a merger between three law firms in 2005 – one from San Diego, one from Baltimore, and one from Britain – DLA Piper has worked as two separate partnerships – one of which is based in the UK and the other of which is based in America.
However, DLA Piper is now weighing up plans to fully merge the US and UK sides of its business, according to sources speaking to Financial News.
A merger would see full integration between the two partnerships that form DLA’s business.
Although the two partnerships currently share the same board and both work under the DLA brand, they operate independently using a “Swiss Verein” structure, which allows the two arms of DLA’s business to retain their financial independence.
Critics of Vereins says the structure allow for a shallow type of merger, by essentially keeping each partnership separate. A full merger would further integrate the two partnerships.
The two arms currently have separate profit pools, separate management structures, and separate remuneration policies.
As such, a full financial merger would fully integrate the two wings of DLA’s business and see the firms share a single profit pool, and take on the same remuneration policies.
While the US arm of DLA only deals with American matters, the UK wing deals with all UK and international clients, in working across Europe, the Middle East, Africa, and the Asia Pacific.