Weil Seeks To Strengthen Its ‘Platform’ As Merger Rumors Swirl

When Michael Aiello and a handful of his M&A partners left Weil, Gotshal & Manges for what the firm memorably called “a smaller platform,” And by that, they meant… Cravath. Weil said it would respond by hitting the gas. The firm “has long believed that an ambitious growth strategy is in the firm’s best interest,” the statement read, “and intends to accelerate execution of that strategy going forward.”

Turns out that was not a figure of speech.

Bloomberg Law reports that Weil is now considering a merger with a competitor, with firm leadership warming to a combination and holding informal talks to gauge interest:

Weil has been canvassing its partners in recent days as it seeks to stem the tide of defections, the people said, asking not to be identified because the information is private. It has also been studying other ways to shore up its business through strategic hires and promotions, and it could still remain independent, the people said.

Weil is pretty tight-lipped about what is actually happening. “Weil is not engaged in merger discussions with any firm,” a spokesperson said. “Like every leading firm, we continually evaluate opportunities to strengthen our platform.”

Weil’s comms team just can’t quit the word “platform.”

The tide in question is real. Aiello, the chair of Weil’s roughly 600-lawyer corporate department and a member of its management committee, is taking M&A co-head Matt Gilroy and four other partners to Cravath. London co-managing partner David Avery-Gee and corporate partner Sarah Flaherty just went to Sullivan & Cromwell. Listen, the firm has breathing room — Weil billed $2 billion last year and is not a firm on the ropes — but, no matter the friction he brought to the table, it’s wise to evaluate what’s next when your biggest rainmaker walks out the door.

And, remember per Bloomberg Law’s reporting, Aiello was an obstacle to growth, territorial about his practice, skeptical of expansion, and a drag on recruiting. He reportedly called it “disloyal” when his own longtime deputy Sachin Kohli wanted to go build a West Coast M&A practice; Kohli left for Wilson Sonsini. Insiders framed Aiello’s exit as “a great opportunity to let Weil be Weil; to be entrepreneurial and grow.” A week later, the entrepreneurial growth under consideration is a merger.

Aiello didn’t travel light, either. Cravath presiding partner Faiza Saeed welcomed him as “a unique fit within our culture” who shares “the values that have long defined Cravath” — a line that reads differently once you remember that Aiello is the Weil partner who advised the CBS board through the Les Moonves mess, which cast a troubling MeToo spotlight on the firm after critics picked apart Aiello for downplaying the Moonves allegations to the board. So, the rainmaker came with an asterisk, and Cravath took him anyway to restock their ranks. For its part, Cravath has seen partners depart at a healthy clip, and the takeaway is that no firm is untouchable anymore.

None of this happens in a market with functioning lockstep. When partner pay tracks seniority, a rainmaker’s outside options are capped by whatever rung another lockstep firm will slot him onto. The death of pure lockstep — at Davis Polk, Cravath, and nearly everywhere else — means every partner has a number, every practice group has a number, and $20 million is just the price of admission. This merry-go-round of top talent shows no signs of stopping, and the firms that can’t afford another ticket are the ones taking merger calls.

Weil says it isn’t currently in merger talks with any specific firm, we’ll see how long that stays true.

Earlier: Weil’s Corporate Chair Decamps For Cravath, Which Weil Would Like You To Know Is ‘A Smaller Platform’
The Cravath Shade Wasn’t A One-Off: Weil Insiders Line Up To Say Good Riddance
Weil Is Relieved To Lose Its Biggest Rainmaker. Cravath Is Thrilled To Get His ‘Values.’
Cravath Is No Longer Immune To Partner Poaching