Sherman & Howard

Background and objectives: 

Sherman & Howard (S&H) was a market-dominant mid-sized firm – the oldest and third-largest firm in Denver, and one of the few remaining larger, independent and foundational firms in the city.  Today’s market demands that firms in this position compete with an ever-growing list of national or super-regional firms setting up shop in their HQ city.  S&H needed to adapt and grow to meet this challenge. 

The task was to (1) evolve S&H goals and operations to sustain and grow its long-term, high value clients; (2) adapt to stage for strategic growth; (3) build consensus around market-based solutions to growth obstacles; and (4) find and execute optimal growth strategies. 

Approach and implementation:

EvolveLaw first assessed S&H’s operations, financials, and position in the market and helped develop consensus around its market position and goals.  With that foundation, we helped S&H develop strategy and adapt to sustain and grow its client base.  For example, EvolveLaw partnered with data scientists to help S&H define its existing and possible growth industry focus and launch internal industry groups to approach clients with deeper industry perspectives and more targeted services; and we guided S&H through compensation changes to encourage industry and teamwork-driven practice development. 

With strategic operational and practice goals in motion, EvolveLaw helped S&H to home in on specific strategies for growth.  S&H’s culture and history demanded a measured approach.  We examined more than 30 groups and smaller firms.  For each, we assessed financials, practice and industry mix and metrics, talent mix and metrics, geographic reach, and culture.

At each step, EvolveLaw leveraged its connections and broad marketplace knowledge to introduce opportunities to expand the partners’ vision.  Over time, S&H looked upstream at potential mergers of “equals” and larger firms to fuel significant client growth.  Again, we vetted 30+ possible growth partners, then prioritized and pursued more than 10 that met our selection criteria.  After initial discussions and the exchange of high-level data and information, we narrowed the list to 3 primary targets and exchanged and analyzed deeper information including financial models, deep-dive practice metrics, and partner compensation comparatives.  Consensus grew around one firm relatively quickly.  Driving factors beyond metrics, practice/industry mix and bench strength included the firm’s governance (allowing S&H to run its practices relatively independently), partner compensation system match, and culture match.  EvolveLaw advised on merger process and structure throughout this period.  After more analysis, S&H executed an advantageous merger agreement, and the combination is well on its path to success. 

Deliverables included 1-Year and 3-Year Strategic Plans, a consensus-built SWOT and Differentiators, Criteria for Growth targets, Meeting Agendas, Presentations on industry data and industry group structures, input on partner Presentations throughout the project, detailed Firm Profiles with financial and practice analyses of potential growth partners, a detailed Playbook of firm information for initial meetings with potential growth targets, and merger process and structure memos. 

Impact:

Sherman & Howard mapped its course, improved its operations, and executed a growth strategy to maintain its unique culture and market dominance.