The report, ‘The laws of organic growth’, published this week by LexisNexis Legal & Professional studied the methods of 20 of the UK’s fastest-growing law firms of varying sizes and specialisms. Its publication comes at a time when many law firms are looking for opportunities to expand, having met or exceeded their 2021 end of year financial targets. The legal sector achieved an all-time revenue high of £41.58bn in 2021, up almost £5bn on the previous year.
According to the report, law firms tend to pursue growth through mergers and acquisitions, enabling them to benefit immediately from the arrival of a pre-existing team. However, this approach carries risks―the loss of a law firm’s culture during a merger can be devastating for staff retention, recruitment, and client acquisition.
Instead, law firms are finding ways to ‘leverage and maximise’ their current client relationships, by giving partners formal training in sales techniques and encouraging secondments with important clients, the report found. Firms are investing in ways to generate business such as publishing thought leadership articles, organising, and attending trade events, joining industry bodies, and creating bespoke content for clients. One popular approach is to bundle additional business services, such as legal technology solutions together with traditional legal services, to create a personalised package with greater value.
Some of the contributors to the report attribute their growth to attracting and retaining the right people, arguing this type of growth is more sustainable and targeted than the disruption of a merger.
Dylan Brown, the report’s editor, said: ‘While there is no “one-size-fits-all” approach to growth, it's clear that there are some winning strategies law firms of all sizes are deploying to drive growth organically.’ Read the report here.
.tmb-mov69x69.jpg?sfvrsn=eba19721_1)
