Lateral partner hiring saw a record-breaking 546 moves in London alone in 2024, a 6.6% increase from the prior year. Similar trends are playing out in major U.S. markets. For law firms, this presents both opportunities to acquire talent and challenges in integrating new partners successfully.
The economics of lateral partner hiring are substantial. Signing bonuses, guaranteed compensation packages, and transition support can represent seven-figure investments. Yet industry data suggests that a significant percentage of lateral partner hires fail to meet expectations within their first few years.
Successful lateral hiring requires rigorous due diligence beyond just looking at portable business. Firms need to assess cultural fit, practice group compatibility, client relationship strength, and realistic revenue projections that account for transition friction.
The most successful acquirers share common characteristics. They have clear strategic rationales for each hire—whether expanding geographic reach, adding practice capabilities, or acquiring specific client relationships. They conduct thorough reference checks with clients and former colleagues. And critically, they invest in integration support after the hire is made.
Integration is where many lateral hires falter. New partners need support building internal relationships, understanding firm systems and processes, and navigating cultural norms that may differ from their prior firm. Firms that assign mentors, create introductions proactively, and check in regularly see much better outcomes.
For candidates considering a lateral move, the advice is similar: look beyond compensation to assess cultural fit and support structures. The firms with the best lateral track records are typically those that invest most heavily in helping new partners succeed.
Firms should also consider retention strategy alongside acquisition strategy. The same factors that make partners attractive to competitors—strong client relationships, valuable expertise—should prompt investment in keeping existing talent engaged and committed.