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Firms Still Eye DC, But Face Tough Competition By Xiumei Dong  Law360 (March 18, 2022, 3:14 PM EDT) -- While many major law firms have long had a presence in Washington, D.C., increasingly complex and overlapping regulations are leading law firms and their headhunters to zero in on potential acquisition targets in the nation's capital. This, however, is an increasingly difficult task.  The latest entrant is Kramer Levin Naftalis & Frankel LLP, which will combine with D.C. litigation boutique Robbins Russell Englert Orseck Untereiner & Sauber LLP on April 1. Earlier in March, Mid-Law firm Armstrong Teasdale LLP debuted a D.C. office with a securities law partner hired from Smith Pachter McWhorter PLC.  Other law firms that entered D.C. last year included Silicon Valley's Fenwick & West, as well as litigation boutiques and intellectual property shops including Irell & Manella LLP, Desmarais LLP, Keller Lenkner LLC and Ellis George Cipollone O'Brien Annaguey LLP.  Despite the increasingly competitive market, legal recruiters in the city told Law360 Pulse that many large firms are still eager to merge or acquire local firms to gain scale in an environment where many attorneys have years of experience working or dealing with federal agencies.  "The goal is to bring a 'D.C. play' to these transactional firms," said Scott Love, founder of a Washington legal recruiting company, The Attorney Search Group.  Love, who's currently assisting two firms on acquisitions, said his clients are looking for smaller firms with regulatory expertise that will fit their transactional practices. Some of these practices have included regulation, policy and lobbying, and intellectual property, he added.  Dan Binstock, a partner at Washington recruiting firm Garrison & Sisson, echoed this. "There's a level of expertise within Washington, D.C., that no other city has in terms of relationships, connection, inside perspective of how certain agencies work and run, and that's extremely valuable to clients," Binstock said.  D.C., which has the most lawyers per capita in the U.S., according to the American Bar Association, already has offices for the majority of the 100 most profitable U.S. law firms. According to Binstock, the market has continued to draw interest from Am Law 200 firms and high-end boutiques. And firms are looking to add expertise in areas including intellectual property, the U.S. Food and Drug Administration, health care, public finance and government contracts, he said.  However, finding the right fit is not an easy task, especially in groups where challenges, such as conflicts, rate structure and compensation, are multiplied by the competitive market, said Kristy Robinson, a D.C.-based partner of recruiting firm Major Lindsey & Africa.  "But also, in addition to that, you're going to have to find a group who doesn't mind being somewhat on an island," she said. "Because if you're opening an office, there's nobody else there."  Moreover, since small firms are often filled with "refugees" from larger firms, Love noted that many don't want to be acquired as they don't want to give up the flexibility and control over billing rates that drove their lawyers to a smaller firm.  "The idea of helping to grow something is appealing to some laterals," Binstock said. "But the opportunity to grow something without a larger and more compelling narrative about the firm's interest in D.C., how it serves their clients, and how the lateral can benefit from joining the firm — without those other elements, it's a very uphill battle."  --Additional reporting by Justin Wise and Jack Rodgers. Editing by Robert Rudinger.   All Content © 2003-2022, Portfolio Media, Inc.