An increase in IPOs and M&A activity will improve revenue for the industry's top firms
New York, NY (PRWEB) December 14, 2014
Participants in the Law Firms industry range from sole practitioners to full-service legal firms mostly serving corporate clients. Industry growth has been modest in the five years to 2014, as cost-weary businesses declined to pursue outside legal counsel. From 2010 through 2014, revenue is expected to increase.
However, Law Firms industry revenue is expected to increase at a more robust rate in 2014. As the economy continues to improve, the Law Firms industry will benefit from higher corporate profit margins and increased corporate activity. IBISWorld Economic Analyst Stephen Morea says in the updated report “an increase in initial public offerings (IPOs) and mergers and acquisitions (M&As) will continue to improve revenue for the industry's top firms, which receive the bulk of their revenue from major corporate clients.” Additionally, a rise in business formation will expand the clientele for law firm services, and a rebounding real estate market will bolster revenue for firms specializing in real estate law. Also, greater demand in labor practices and niche practices tied to high-growth sectors like technology and healthcare will boost overall industry revenue. Corporate litigation, however, has failed to show significant growth in recent years, which will continue to temper industry revenue growth in 2014, as large corporations rely more on in-house attorneys and increasingly seek value over reputation when selecting an industry law firm.
Industry revenue is projected to increase in the five years to 2019. The overall performance of the economy, an anticipated increase in corporate profit and an influx of new laws and regulations will aid revenue growth in the next five years. “Expected increases in consumer disposable income will also aid smaller industry participants by increasing demand for services like estate and trust planning,” Morea says. In addition, improving investor confidence will stimulate more activity in M&A and IPO markets, facilitating higher demand for corporate legal services.
For more information, visit IBISWorld’s Law Firms in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises offices of legal practitioners, known as lawyers or attorneys, who primarily practice law. Establishments provide expertise on a range of areas or specific areas of law, such as criminal, corporate, family and estate, patent, real estate or tax.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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