As many in the legal sector are aware, many mid-sized and smaller legal firms are now feeling under pressure with challenges on many levels. They face increasing competition from strategically better placed and/or capitalised firms and from product specialists, with innovation and automation in the sector offering tech enabled solutions. At the same time, they are seeing encroachment by the Big 4 accountants into the market, pressure on activity and fees as clients struggle with the economic downturn, increasing balance sheet financing costs and rising pay for attracting and training of talented lawyers. It has never been more important for leadership teams to position their firm to survive and thrive.

Unsurprisingly, therefore, our legal services M&A specialist Robert Colthorpe finds himself talking to senior partners wondering how best to secure their firm’s future and generate value for their partners. Several are considering whether they should merge with or even sell to a larger firm. Despite uncertainties and disruption in the sector, this remains a viable option; we continue to see active investment interest, from both strategic players and public and private capital.

Managing partners who would like to understand what recent developments in the market might mean for their firms, are invited to get in touch with our legal services M&A specialist Robert Colthorpe or Jim Keeling, founder of Corbett Keeling. Jim and Robert are veterans of the corporate finance world, and Robert also has a long track record of advising firms in and around the legal services sector since 2007 when The Legal Services Act came into force.