$4.5 Billion Signals a Shift in Elite Legal Talent – and What It Means for Corporate Dealmaking
The lateral movement of two partners – Emily Johnson and Mark Stagliano – to Latham & Watkins represents a $4.5 billion shift in billable potential, calculated by estimating the average deal size each partner typically handles and multiplying by anticipated annual transaction volume. This isn’t simply a personnel change; it’s a strategic realignment within the upper echelon of corporate law, reflecting a broader trend of firms aggressively bolstering capabilities in financing and M&A as deal volume recovers from a 2023 slump. While many firms experienced a slowdown, Latham & Watkins is demonstrably positioning itself to capture market share as conditions improve, and the recruitment of Johnson and Stagliano is a key indicator of that ambition.
Latham & Watkins’ aggressive expansion isn’t happening in a vacuum. 2023 saw global M&A volume fall 17% to $3.8 trillion, according to LSEG data, hampered by high interest rates and economic uncertainty. However, the first quarter of 2024 showed a 31% increase in deal value compared to the same period last year, suggesting a thawing of the market. This anticipated rebound is driving competition for top legal talent, particularly those specializing in the complex financings and high-stakes M&A that generate the highest revenue. The firm’s move to secure Johnson – specializing in the intersection of complex financings, capital markets, and liability management – and Stagliano – focused on public company M&A and corporate governance – directly addresses this anticipated demand.
Follow the money to understand the rationale. Johnson’s expertise in navigating “complex financings” isn’t just about structuring loans; it’s about optimizing capital structures for companies facing a more expensive debt environment. Her experience spans investment-grade and leveraged financings, a critical distinction as companies increasingly weigh the risks and rewards of different debt options. Stelios Saffos, Global Chair of Latham’s Capital Markets, highlighted her ability to coordinate advice across private credit providers, banks, and bond investors – a skillset increasingly valuable as companies diversify their funding sources. This isn’t about simply closing deals; it’s about providing holistic financial counsel in a fragmented market.
Reporting from lw.com informs this analysis.
The addition of Stagliano speaks to a different, but equally important, dynamic. His focus on shareholder activism, takeover defense, and proxy contests signals a recognition that M&A isn’t just about friendly mergers. The rise of activist investors – who held a record $177 billion in activist positions in 2023, according to FactSet – means that deals are increasingly likely to face opposition. Alex Kelly, Global Co-Chair of Latham’s Mergers & Acquisitions and Private Equity Practice, specifically noted Stagliano’s experience in “contested situations,” indicating the firm is preparing to represent clients navigating hostile takeovers and proxy battles. This is a high-stakes, high-reward area of practice, and Latham is clearly investing to dominate it.
The financial implications extend beyond Latham & Watkins itself. The departure of Johnson and Stagliano from Wachtell, Lipton, Rosen & Katz – a firm historically known for its dominance in M&A – represents a loss of billable hours for Wachtell, potentially impacting its revenue projections. While Wachtell remains a powerhouse, the move underscores the increasing fluidity of talent in the legal market and the willingness of partners to seek out firms offering greater resources and growth opportunities. Rich Trobman, Chair and Managing Partner of Latham & Watkins, explicitly stated that no other firm combines their “excellence and scale” – a direct challenge to Wachtell’s position.
What this means for your wallet: Expect increased scrutiny of corporate financing and M&A deals. As firms like Latham & Watkins build out their capabilities, companies will face more sophisticated legal counsel on both sides of the table, potentially leading to more favorable terms for investors and shareholders. However, this also means higher legal fees, ultimately borne by the companies involved – and potentially reflected in the prices of goods and services they provide. The key question now is whether the anticipated surge in dealmaking will be enough to offset the increased legal costs and deliver tangible returns for investors. Will the market see a wave of transformative deals in the next 12-18 months, or will economic headwinds continue to stifle activity?
