Jenkens & Gilchrist: the Rise and Fall of a Modern Law Firm
JENKENS & GILCHRIST: THE RISE AND FALL OF A MODERN LAW FIRM
By Cheryl L. Mullin
It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change ~ Charles Darwin.
I. INTRODUCTION
Jenkens & Gilchrist was a Dallas-based law firm that grew rapidly in the 1990s, primarily through mergers, acquisitions, and lateral hires. But when it was formed in 1951, the partners had no national aspirations. Its only purpose, in fact, was to serve the needs of legendary oilman Clint Murchison, Sr. and his family in connection with the acquisition and management of the family’s extensive corporate, oil and gas, and real estate holdings. As the Murchison family’s holdings flourished, so did Jenkens’ practice, primarily in the areas of oil and gas and real estate, where Jenkens’ lawyers’ had gained particular experience through their representation of the Murchison family. As time passed, the firm began to take on non-Murchison work to support the growing practice. Because of its expertise, oil and gas and real estate were the natural areas of expansion.
In the early 1980s, a drop in oil prices, real estate overdevelopment and other factors created a financial “perfect storm” that devastated businesses throughout the metropolitan areas of Texas. During the fallout, Jenkens lost not only its core Murchison and Murchison-related business (which at that time still constituted about half of the firm’s business), but also much of non-Murchison oil and gas and real estate work. By the late 1980s, therefore, Jenkens was fighting for its survival. It needed to shed its dead weight and to diversify and grow – quickly and contemporaneously – or the firm would die through shareholder attrition and firm raiding. Thus began a period of rapid and uncontrolled expansion, which included opening offices in strategic markets and a push to increase “profits per partner” to entice shareholders with their own practices to stay with the
By Cheryl L. Mullin
It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change ~ Charles Darwin.
I. INTRODUCTION
Jenkens & Gilchrist was a Dallas-based law firm that grew rapidly in the 1990s, primarily through mergers, acquisitions, and lateral hires. But when it was formed in 1951, the partners had no national aspirations. Its only purpose, in fact, was to serve the needs of legendary oilman Clint Murchison, Sr. and his family in connection with the acquisition and management of the family’s extensive corporate, oil and gas, and real estate holdings. As the Murchison family’s holdings flourished, so did Jenkens’ practice, primarily in the areas of oil and gas and real estate, where Jenkens’ lawyers’ had gained particular experience through their representation of the Murchison family. As time passed, the firm began to take on non-Murchison work to support the growing practice. Because of its expertise, oil and gas and real estate were the natural areas of expansion.
In the early 1980s, a drop in oil prices, real estate overdevelopment and other factors created a financial “perfect storm” that devastated businesses throughout the metropolitan areas of Texas. During the fallout, Jenkens lost not only its core Murchison and Murchison-related business (which at that time still constituted about half of the firm’s business), but also much of non-Murchison oil and gas and real estate work. By the late 1980s, therefore, Jenkens was fighting for its survival. It needed to shed its dead weight and to diversify and grow – quickly and contemporaneously – or the firm would die through shareholder attrition and firm raiding. Thus began a period of rapid and uncontrolled expansion, which included opening offices in strategic markets and a push to increase “profits per partner” to entice shareholders with their own practices to stay with the