McDermott and Schulte Complete Merger, Forming $2.8 Billion Legal Powerhouse
August 1, 2025 – McDermott Will & Emery and Schulte Roth & Zabel finalized their merger on August 1, 2025, creating McDermott Will & Schulte, a global law firm with over 1,750 lawyers across more than 20 offices and approximately $2.8 billion in combined revenue. The deal, approved by partners in a June 26, 2025, vote, positions the firm among the top 20 U.S. law firms by revenue and headcount, likely ranking 13th in the Am Law 100.
Strategic Alignment and Complementary Strengths
The merger unites Chicago-based McDermott, known for its expertise in healthcare, tax, and mid-market mergers and acquisitions (M&A), with New York-based Schulte, a leader in private capital, hedge funds, and financial regulation. McDermott’s 2024 revenue of $2.2 billion and Schulte’s $619 million create a robust platform for high-value transactional, regulatory, and litigation practices. The combined firm enhances McDermott’s private capital offerings and expands Schulte’s geographic reach, particularly in New York, where the firm now boasts over 540 lawyers, making it one of the city’s largest private legal operations.
“This combination is about growth, synergy, and delivering unparalleled value to our clients,” said Ira Coleman, McDermott’s chairman. Schulte’s co-managing partner Marc Elovitz called the merger “transformative,” citing shared values and complementary strengths. The firm aims to redefine modern elite law firms by focusing on specialization, client service, and a people-first culture.
Market Impact and Industry Trends
The McDermott-Schulte merger reflects a broader wave of consolidation in Big Law, driven by the need for scale, talent retention, and global reach. According to Fairfax Associates, 22 law firm mergers were completed in Q1 2025, matching the pace of 21 in Q1 2024. Notable recent mergers include Allen & Overy with Shearman & Sterling, forming a 4,000-lawyer giant, and Herbert Smith Freehills with Kramer Levin, creating a 2,700-lawyer firm. The McDermott-Schulte tie-up follows this trend, with analysts like Kent Zimmermann of Zeughauser Group noting that larger firms gain advantages in compensation flexibility, technology investment (e.g., $30 million in AI for 2025), and client appeal for high-rate work.
The merger strengthens the firm’s presence in key markets, particularly New York, London, and Washington, D.C. The New York office grows by 330 attorneys, while London’s office, now exceeding 100 lawyers, benefits from McDermott’s planned 2028 relocation to Mayfair, a hub for private equity. Practice areas like corporate (+160 attorneys), litigation (+77), banking (+41), and tax (+29) see significant expansion, enhancing cross-functional capabilities.
Challenges and Outlook
Despite the strategic fit, challenges remain. Leopard Solutions projects a 68% talent retention rate, strong compared to peers like Troutman Pepper and Clyde & Co. (48–50%), but a potential 27% headcount decline looms due to cultural integration, compensation disparities, or practice redundancies. McDermott’s average partner compensation is $1.9 million, while Schulte’s is $2.6 million, which may require recalibration. Promotion timelines also differ, with McDermott associates reaching partner status faster (2,580 days) than Schulte’s (5,308 days).
Schulte’s recent partner departures, including leaders in restructuring and litigation, and its January 2025 shift to a non-equity partner tier to retain talent highlight pre-merger adjustments. McDermott’s closure of its Singapore office in April 2025, ending its Asia presence, contrasts with its European expansion through lateral hires in London, Paris, Frankfurt, and Munich. These dynamics underscore the complexities of merging two high-performing firms.
Client and Market Implications
The merged firm, McDermott Will & Schulte, is poised to compete with top-tier firms like Quinn Emanuel and Latham & Watkins, particularly in private capital, life sciences, intellectual property, and cross-border M&A. Clients benefit from a deeper bench in healthcare, tax, private equity, and fund formation, supported by a global network. However, the integration process, including branding and cultural alignment, will take time, with a phased approach to minimize disruptions. The firm’s iconic “M” logo will persist, alongside new colors and designs by September 2025.
As Big Law continues to consolidate, McDermott Will & Schulte’s formation signals a new benchmark for scale and specialization. The firm’s success will hinge on retaining top talent, harmonizing cultures, and delivering on its promise of elite client service in a competitive legal landscape.