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On March 1, 2012, a hitherto unthinkable merger came to fruition. One of China’s Red Circle law firms merged with one of Australia’s biggest outfits, and King & Wood Mallesons (KWM) was born. The first-of-its kind combination raised eyebrows as many felt the firms were too culturally dissimilar, and a few industry watchers even wondered how long it would last.
Five years on, not only is the merged firm still around, but it also has a number of accomplishments to brag about. But it is also true that KWM had its fair share of crises, such as the financial problems that plagued its European arm in the latter half of 2016. There were also failed attempts at other tie-ups: In 2013, a merger with Singapore’s WongPartnership was called off literally days before it was supposed to be announced, according to media reports.
Overall, however, the KWM story has been a story of success. Last year, for example, it was ranked as the top legal brand in Asia by the Acritas Asia-Pacific Law Firm Brand Index. And with more than 1,000 lawyers in the region, KWM is the eighth-largest domestic law firm in Asia, according to the ALB Top 50. The firm’s accomplishments also include growth in revenue and referrals across Australia, China and Hong Kong as well as a new office in Singapore.
KWM’s push for global integration notably included cultural integration, but it wasn’t always easy. “Integration requires hard work, patience, persistence and perseverance,” said a spokesperson for the firm. “To develop genuine relationships with each other takes time and commitment.” Among the lessons learnt by the firm in its first five years was “the importance of shared values, a shared vision and clear direction.”
THE HK FACTOR
KWM stressed that despite the short timeline, there was “nothing unusual” in terms of the challenges it faced during the merger. “While the differences between our nations, our cultures and our legacy firms exist, as individuals we are striving for the same thing – to do great work for great clients with great people. Our values are very similar,” said the spokesperson. That said, the firm “learned some valuable lessons on multi-lingual systems that will come in handy in the future.”
A vital factor in the smooth transition was the Hong Kong office, where both the legacy firms had a presence prior to the integration. As the spokesperson pointed out, “From the outset, all staff benefits and entitlements were aligned to reflect what the best fit was for the Hong Kong market, instead of KWM simply looking at it from a legacy firm approach.”
As the firm’s network grows, the Hong Kong factor remains critical in integrating the KWM brand. At a partner level, there are regular gatherings of partners at a management, practice and social level, which has resulted in collaboration across practices and associated client engagement.
Looking ahead to the next five years, KWM says it remains focused on cementing its position as the leading international firm in Asia. “Our global strategy will be client-driven. It will be based on how we can best support our clients in Asia as they do business offshore as well as our international clients as they do business in Asia,” said the spokesperson.
