As regional law firms pursue growth, a notable trend has emerged: they are increasingly opting for mergers in middle markets instead of traditional top-tier legal centers. An analysis by Bloomberg Law of Fairfax Associates data reveals that approximately 60% of law firm mergers finalized in the first three quarters of 2024 involved regional firms expanding into secondary markets like Denver, Las Vegas, and Seattle. This trend is particularly evident in the third quarter of 2025, where three out of four announced mergers aligned with this strategy, including Womble Bond Dickinson’s acquisition of Lewis Roca in Phoenix.
Womble chief executive-elect Merrick Benn emphasized the firm’s desire to grow without overextending in prime markets. “We are looking for opportunities to grow, but we’re not going to take up multiple floors in a midtown Manhattan office,” he stated in an interview, highlighting the potential of markets like Phoenix and Charlottesville for expansion.
This strategic shift underscores a growing belief that being a dominant player in an emerging market is more advantageous than competing for a limited presence in established legal hubs such as New York, Chicago, and Los Angeles. By focusing on states like Colorado, Arizona, and Nevada, law firms can broaden their geographic footprint, enhance their competitive edge, and develop practices that leverage their unique strengths.
According to Bruce MacEwen, a law firm consultant with Adam Smith, Esq., middle markets offer a welcome break from intense competition with larger rivals. He noted that even the most ambitious firms within the top 50 have largely bypassed states like Arizona and Colorado, leaving ample room for regional firms to thrive.
Firms like Paul Weiss are drawn to markets with higher concentrations of wealth and transactional activity, as MacEwen pointed out. He remarked, “Paul Weiss and Latham have been on expansion tears lately, but they need capital markets, financial services businesses, and private equity,” adding that Phoenix, known for its retail chain headquarters, doesn’t align with their business model.
Market Expansion Strategies
Long-standing regional firm Spencer Fane, founded in Kansas City, Missouri, has also embraced this trend, expanding into Utah and New Mexico earlier this year. Last week, it announced a merger with Holley Driggs, aiming to increase its presence in Las Vegas by two-thirds, adding 35 attorneys. Additionally, Fennemore Craig, known for its serial acquisitions, welcomed 80 lawyers from the dissolving firm Moye White in Denver—marking its fourth merger of 2024.
Significant mergers announced for the upcoming year include Womble’s combination with 221-lawyer Lewis Roca, Taft Stettinius & Hollister’s merger with Denver’s Sherman & Howard (125 lawyers), and Ballard Spahr’s union with Seattle’s Lane Powell (144 lawyers), as reported by Fairfax data.
Despite having established an office in New York in 2022 through the acquisition of an IP boutique, Benn acknowledged the limited growth opportunities in the Big Apple compared to secondary markets. “Are we going to be one of those white shoe firms in New York like Davis Polk and Cravath? No,” he said, adding that markets such as Phoenix and Charlottesville offer growth potential that aligns with their full-service firm capabilities.
Benn noted that the firm’s roots in the U.S. Southeast allow it to align its rates more closely with upper-middle market clients.
Advantages of Middle Markets
Roxanne Jensen, a Denver-based consultant and former Morrison & Foerster partner, emphasized that firms thriving in the Mountain West region are often those that can sustain middle-market billing rates. “A lot of secondary markets are emerging with desirable industry development,” she explained, highlighting the compatibility of practices and rates that may be lacking in primary markets.
MacEwen noted another advantage: lower operational costs in middle-market cities compared to tier-one cities like New York. “If a firm is going to come in from outside, by definition, they’re coming in from second-tier market,” he explained, indicating that their profit margins may not align with the high rates of first-tier firms.
Taft chair Robert Hicks discussed how the firm’s areas of focus, such as municipal bonds and finance, complement the practices of Sherman & Howard. He acknowledged that the firm’s middle-market billing rates have so far prevented its expansion into New York and Florida. “There are a lot of major firms in New York that don’t have the same business model as us,” he said, noting their strategy to merge with independent firms that can provide high-end middle-market work at compatible rates.
Ballard Spahr, in merging with Lane Powell, will enhance its presence with three new offices in Seattle, Portland, Oregon, and Anchorage, Alaska, tapping into the region’s tech client base. “The rates tend to be lower and that matters for clients in these cities, fitting into our pricing structure,” said firm chair Peter Michaud.
Spencer Fane’s chair and managing partner Patrick Whalen shared that interest in merging with the firm has surged over the past five years as it has become a go-to acquirer for operations seeking broader geographic reach. “You’ve got firms of all sizes and shapes increasingly open-minded about combining,” he stated, reflecting the evolving landscape of regional law firm growth.