There were 91 mergers in the UK legal sector in the year up to 31 December, significantly down from 122 in 2023 and 117 in 2022, according to figures collated by accountants Lubbock Fine.
One reason could be that mergers between law firms rarely include a large upfront payment for the ‘acquired’ firm, whereas private equity (PE) backed acquisition are more likely to include an upfront payment plus an ‘earn out’ deferred payment if targets are met.
Mark Turner, partner, Lubbock Fine, said there is growing interest among PE houses to invest in law firms, especially those with a high percentage of retained clients. He said PE’s entry into the legal sector is in its infancy and is likely to gather pace in the next two years.
Turner cited the example of Inflexion Private Equity Partners’ takeover of publicly listed legal services company DWF Group in 2023.
In May 2025, south coast law firm Trethowans was acquired by legal services provider Lawfront, backed by PE firm Blixt.
Turner said: ‘The steep fall in traditional merger deals between law firms has been caused by many sellers holding out for a better deal.
‘The arrival of PE as a possible acquirer of law firms is disrupting the market and creating new—more lucrative—exit options. Few lawyers will have the opportunity to sell their firm twice—holding out for a cash bid from a deep pocketed PE fund is an attractive alternative.’
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