Andrew Whitehouse of corporate finance house Smith Square Partners – which is targeting the legal market after tying up with ABS Advisory Partners – says that with consolidation set to accelerate, converting to a corporate structure is the best way for law firms to take advantage of it
The number of incorporated law firms has risen sharply in the past year, with more than a fifth of legal practices now limited companies. According to Solicitors Regulation Authority figures, 2,400 of the 10,973 law firms as of July were incorporated companies, compared to 1,898 a year before – a rise of 26%.
Over half of all law firms have either lost business to a non-lawyer competitor or expect to in the future, a new survey from accountants Baker Tilly has revealed. Some 29% of firms with 25 partners or fewer had already lost business to a non-lawyer competitor, compared to 12% of larger practices.