Law Firms in the US Industry Market Research Report from IBISWorld Has Been Updated

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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. For these reasons, industry research firm IBISWorld has updated a report on the Law Firms industry in its growing industry report collection.

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An increase in IPOs and M&A activity will improve revenue for the industry's top firms

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.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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