Interest in external investment is dwindling among law firms
Only 45% of firms are considering an outside investor, compared to 56% last year, according to the Baker Tilley Legal Services Act survey.
Less than a quarter are interested in incorporating, compared to just over a third last year. However, a rising number of firms are considering re-structuring to allow non-lawyer ownership—36% compared with 26% last year.
More than one in five firms are actively pursuing providing non-legal services via an appropriate non-lawyer partner compared with only 13% last year. Rowan Williams, partner at Baker Tilly, said: “Previously, law firms were interested in the opportunities provided by external investment from listing or private equity.
“However, over the last six months, management boards have done more research into what external investment would actually mean to their business.
Firms are either not willing to let outsiders get involved in management, or have reached the conclusion that external investment is not the answer to achieving their strategic aims.”
