In today’s volatile marketplace, many law firms are losing their independence.
According to Altman Weil MergerLine, 2019 was a record-breaking year with 115 combinations, a number of which were high-profile, high-volume mergers.
2020 already has seen a new crop of mergers, of a bit of a different ilk – larger scale and, at least at first glance, from stronger platforms with strategic synergies than some of the mid-2000’s combinations.
Similarly, in last year alone, more than 3100 BigLaw partners found new homes; up from 2018. ALM/Decipher joint report estimates $17.1B changed hands with lateral moves from 2014-2018.
By the Numbers
- Law firms’ demand growth hovers between 3 and 5%
- Lateral hires have a success rate of about 50%, according to a recent ALM Legal Intelligence/Decipher report
- 80-90% of organic revenue comes from a handful of clients. 10-20% of revenue comes from inorganic growth, the majority of which is lateral acquisition.
The question for law firms is simple: How do you grow on your own terms?
There are 5 Essential Survival Strategies
- Enhance Profitability
- Fortify and Grow Existing Client Base
- Cultivate the Right Culture
- Practice Strategic Discipline
- Develop Change-Oriented Leaders