Merged law departments sometimes face limits on how much the cost basis can increase

Posts before this one have dealt with the effects of a merger mostly in terms of law department headcount (See my post of Jan. 16, 2009: layoffs after mergers with 9 references.).

Another post-method method by which companies squeeze out savings is to limit the surviving general counsel to a budget increase that is a portion of the acquired law department’s budget. Maybe the general counsel can add only 30 percent of the other department’s cost basis, maybe 40 percent. At least that limit allows the general counsel some latitude in how to achieve the cuts.

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