Germany’s Most Profitable Law Firm, Hengeler Mueller, Dominates in M&A

Elite training combined with a gradual shift in traditional values has greatly contributed to Hengeler Mueller’s ongoing success. Thomas Mueller, the managing partner of this distinguished German law firm, stands out amidst the sea of pinstripe suits in the Frankfurt WestEnd Duo skyscraper as a figure reminiscent of a seasoned banker rather than a legal professional. Living within a short bike ride from the tower situated on the outskirts of a lush residential neighborhood, many of the 350 lawyers at Hengeler foster a close-knit environment, setting the firm apart from its Big Law competitors. The people at Hengeler are integral to its reputation and presence in the German legal market.

Known for its involvement in high-profile deals, Hengeler Mueller frequently graces the headlines, whether for the recent €9.5 billion TenneT energy grid acquisition or the preceding €4 billion Continental spin-off IPO. As one of the most prominent firms in Europe’s largest economy, Hengeler often plays a pivotal role in major transactions. According to Mueller, in the highly competitive German market, Hengeler and Freshfields have maintained a longstanding dominance, with new contenders like Kirkland and Latham making their presence felt over once-dominant firms like Shearman and Cleary.

While Kirkland & Ellis has been gaining traction in Frankfurt, Cleary Gottlieb Steen & Hamilton and Goodwin Procter’s departure from the city earlier this year sparked concerns about Frankfurt losing its appeal for international law firms. Nevertheless, Mueller emphasized that Frankfurt remains a key financial hub and an attractive destination for law firms. Interestingly, Hengeler’s significant private equity work is often sourced from London-based asset managers such as KKR and Blackstone, indicating the firm’s global reach and influence.

Despite its relatively modest size of 354 lawyers and 95 equity partners, Hengeler commands an impressive revenue of $412 million, placing it at 156th on the ALM Global 200 list. This translates to a substantial revenue per lawyer figure of $1.165 million, surpassing both domestic competitors like Rödl and Noerr, as well as global players like Hogan Lovells.

Formed in 1990 from the merger of two reputable firms, Hengeler Mueller has steadfastly resisted mergers with foreign entities, which has been a common trend among German firms. Instead, the firm has preserved its distinct identity and reputation as one of the few German-headquartered firms in the Global 200. With offices across several cities in Germany, as well as in Brussels and London, Hengeler is deeply entrenched in the legal landscape of Europe.

Noteworthy for its commitment to nurturing talent, Hengeler’s stringent aversion to lateral hires underscores its preference for training associates from the ground up. This approach allows the firm to attract exceptional candidates from the country’s top law schools. According to Mueller, the firm’s enduring appeal lies in its ability to draw top talent based on its esteemed reputation, further dispelling misconceptions about the motivations of young lawyers and industry professionals.

Under Mueller’s leadership, changes have been introduced, such as the establishment of a salary partnership tier in 2022, signaling a progressive shift for Hengeler within the conservative legal sphere of Germany. Despite these alterations, the firm remains steadfast in maintaining its core values of excellence and persistence, evident in its alumni excelling in top corporate roles across various industries. These alumni have extended the influence of Hengeler beyond its legal realm, positioning the firm as a breeding ground for future leaders in the German corporate landscape.