It’s been an interesting couple of years in the business of law firms. According to Altman Weil Inc., the record pace of law firm combinations we have seen is likely to continue, and maybe even increase. This leads to a question: Why are firms combining at an unprecedented rate?
- Demand for legal work is down
- Firm is under performing
- Geography or Client Opportunities
- Lack of Resources and Expertise
- Small firms desiring to focus more on practicing law and less on managing operations and overhead
In 2017, over 70% of the combinations reported were smaller firms (2-20 attorneys) affiliating with larger platforms, according to Altman. This is a great step for small firms looking to grow existing client relationships and wanting to build new ones.
Many times there are opportunities that could be the right fit for your firm, but maybe you don’t know where to start. A combination with another firm should be an extension of your core beliefs, approach to practice and your culture. If a combination is something of interest, it’s wise to seek independent advice.
Law Firm Hiring and Combination Expert