Purging the Urge to Merge: The State's Changing Economic Climate could Cool off the Coupling of Homegrown and Out-Of-State Law Firms (Feature‪)‬

In the 2000s, the urge to merge seemed to surge. If Tar Heel law firms weren't pairing up, they often were playing the field, flirting with potential suitors looking for that special someone. As the state's reputation grew, especially for banking and securities law, so did the parade of out-of-state swains, who weren't discouraged if the perfect partner eluded them. They would open an office in Charlotte or affiliate with local firms, which often portended a merger. The cooling economy has been like a cold shower. Structured finance, where much of the growth was centered, has withered and might never return to its glory days. "Manufacturing and banking are now totally in the tank," says John Martin Conley, a law professor at UNC Chapel Hill, "and who knows what will happen going forward." Even well-positioned firms are cautious. "We are watching things closely and are concerned like any business about what the impact of the global recession will be," says Keith Kapp, a board member of Richmond, Va.-based Williams Mullen, which has offices in Raleigh, Durham and Wilmington.