Daily upDates on www.nlj.com THE WEEKLY NEWSPAPER FOR THE LEGAL PROFESSION monDay, november 12, 2007 the nlj 250 Reed Smith follows its clients onto the world stage three additions: Richards Butler Reed Smith has taken steps Profits soared, and now in the United Kingdom, United to strengthen its service to global the firm ranks among Arab Emirates, Greece and clients through an extensive France; Sachnoff & Weaver in Reed Smith University training the elite powerhouses. Chicago; and Richards Butler program. The firm has a partner- By Sheri Qualters Hong Kong in China, a ship with the Aresty Institute of STAFF REPORTER deal scheduled to close on Executive Education at the TEN MERGERS SINCE 2000 have kept Reed Jan. 1, 2008. Wharton School of the Univer- Smith’s firmwide managing partner, Greg Jor- Reed Smith opened its doors sity of Pennsylvania. Addition- dan, globe-hopping for 180 days each year, in 1877 and still represents the ally, its general counsel liaison tending to a far-flung legal empire that caters to legacy companies, universities visits clients to collect feedback. GREG JORDAN: “We decided to embrace the an equally global client base. and foundations of original cli- trend, not lament and fight it.” “To expand [the relation- “We thought we saw globalization accelerat- ents such as Andrew Carnegie, ships] and improve the service, ing, with major companies in key sectors be- H.J. Heinz and Andrew Mellon. It was jolted asking them how we’re doing is critical,” coming more global,” Jordon said. “We decided into change in 2000, when it watched other Jordan said. to embrace the trend, not lament and fight it.” firms help its biggest clients move to Europe, Such efforts have paid off, said consultant Copying its corporate clients’ global ambi- Jordan said. Merging with London-based War- Michael B. Rynowecer, president of The BTI tions has transformed Reed Smith from a re- ner Cranston in 2001 enabled the firm to help Consulting Group Inc. in Wellesley, Mass. Dur- gional Pittsburgh firm into a global powerhouse long-standing client Mellon Financial Corp.— ing the past few years, Reed Smith has been in with 1,447 lawyers. It also pushed the firm into which now is the Bank of New York Mellon the top 20 of The BTI Client Service A-Team the top 10 of the NLJ 250, The National Law Corp.—with its British expansion. ranking of law firms, based on interviews with Journal’s survey of the nation’s largest law firms. Since then, Reed Smith has developed sig- 250 corporate counsel, Rynowecer said. Just five years ago, the firm ranked No. 34, nificant relationships with banking clients Bank “If you go out and talk to the clients, they with 739 lawyers. Revenue jumped to $644 mil- of America Corp. and Wachovia Corp.; private tend to embrace the merger and think more lion in 2006 from $314 million in 2002, though equity companies such as the Blackstone Group; highly of you,” he said. the firm’s 2006 profits per partner of $940,000 and pharmaceutical companies such as Eli Lilly With a global network in place, Reed Smith lagged behind the most profitable firms. and Co., Merck & Co. Inc., Pfizer Inc. and Wy- now wants to enhance its corporate, mergers- Still, profits per partner have nearly tripled eth. The firm has expanded those ties as it and-acquisitions and securities practices, and since 2000’s take of $315,000, and the firm is has grown. “anything to do with financial services and life continuing that upward trajectory, Jordan said. Overall, Reed Smith has tripled its business sciences,” particularly in major commercial “The profitability improvement isn’t in spite of with its top 250 clients during the past four to centers such as Hong Kong, London and New our growth, it’s driven by our growth,” Jordan five years to an expected $500 million this year, York, Jordan said. said. “It’s allowed us to have a stronger firm do- Jordan said. “Whichever city we’re in, I end up New York is a priority, since the firm has a ing more high-end work for stronger companies going to call on the same clients,” he said. mere 100 lawyers there compared with about and leading companies.” Reed Smith, like Kirkpatrick & Lockhart 330 in London, Jordan said. It is one of a few Legal consultant Peter Zeughauser of the Preston Gates Ellis, is one of a very small num- firms with strong positions in the United States, Zeughauser Group said Reed Smith deserves ber of firms with a credible, three-continent Europe and Asia, and it plans to build on that, credit for making a very good start toward be- platform, said K&L Gates Chairman and global he said. coming a global powerhouse. The challenging managing partner Peter Kalis. part is capturing the profitable work in Asia, he “Even modest-sized companies these days Reprinted with permission from the November 12, 2007 edi- said. “There’s a lot of price pressure in Asia in compete in global markets,” Kalis said. “The tion of The National Law Journal © 2007 ALM Properties, Inc. different ends of the market.” question is whether their law firms are going to All rights reserved. Further duplication without permission is prohibited. For information, contact 212-545-6111 or visit The merger train accelerated this year with be there with them.” www.almreprints.com. # 005-11-07-0012.