“These combinations won’t ever be as good as tactical, synergistic moves to bolster market positions or enter untouched markets,” mentioned the report. “We also don’t sign up for the concept a mixture can remedy underlying systemic challenges that both participant firms are facing individually, as some combinations have searched for to complete.”
On the top of individuals demographic concerns, firms will more and more face competition from alternative legal providers the coming year and beyond, based on the report. The Large Four accounting firms figure to become major players, because the report noted the group is well-suited to reply to client calls for efficient delivery of legal services. The Large Four’s annual paying for technology and training each year eclipses the revenue associated with a given law practice, based on the report.
After many years of carefully manipulating the ranks of equity partners, Citi discovered that 32 percent of equity partners are actually at or approaching retirement. The report expects “an onslaught” of partner retirements in in the future, a topic covered at length through the American Lawyer this past year. Firms might not be well-positioned to cope with them, based on the report, as a result of insufficient talent management within their more youthful partner ranks or senior affiliate tier.
“That all suggests they’re an industry pressure at some stage,” Rusanow stated.
Volatility continues over the market in 2018, based on the report. Businesses that saw revenue development in 2017 are not even close to guaranteed exactly the same result the coming year, as you firm’s growth is more and more viewed as coming at the fee for other firms.