A&O Shearman partner profits jump 12% as revenue stays flat in second year post-merger

Two years on from its transatlantic merger, A&O Shearman’s profit per equity partner has reached £2.2 million ($2.9 million), an increase of 12% on last year.

Revenue dipped slightly to £2.8 billion ($3.7 billion), roughly on par with last year’s £2.9 billion. The firm’s pre-tax profits hit £1.2 billion ($1.6 billion), an increase of 14% on last year.

Following its merger, the firm moved to an all-equity model and subsequently cut its partner ranks. During this past financial year, the firm added 24 lateral partner hires.

‘Differently shaped’

The firm said it had become “nimbler and differently shaped” and that the increased profitability reflects a shift towards high value mandates in life sciences, tech, private capital, consumer goods, energy and disputes.

“Revenue mix continued to shift toward complex, cross-border matters where the firm’s proposition is most relevant - transformational transactions and financings, major disputes, emerging regulatory issues, and AI-enabled services - increasing profitability,” the firm said in a statement.

The firm landed some major mandates during the year including biotech Genmab’s $8 billion acquisition of oncology company Merus and US tech company Texas Instruments’ $7.5 billion acquisition of Silicon Labs.

What they said

“We set out to build a firm that wins on the unique strength of its global platform and a culture of excellence. These results show our strategy taking hold,” said global managing partner Hervé Ekué.

“Clients are entrusting us with more of their most important and complex mandates. Combined with the way we have streamlined our operation, our profitability has grown significantly. We are a more profitable firm, with a stronger base for sustainable growth.”