Legal Services Industry Profile

Firms in this industry provide the services of lawyers and other legal practitioners to individuals, businesses, government agencies, and nonprofits. Major firms include Baker McKenzie; Kirkland & Ellis; Latham & Watkins; and Skadden Arps (all based in the US). A&O Shearman, Clifford Chance, Dentons, DLA Piper, and Freshfields Bruckhaus Deringer are all based in the UK.

Besides the US and the UK, key markets for legal services include Australia, Canada, France, Spain, and the Netherlands. Emerging markets, with growing numbers and values of deals, include China, India, and other parts of Asia.

The US legal services industry includes about 180,000 establishments (single-location firms and units of multi-location firms) with combined annual revenue of about $300 billion. In addition to offices of lawyers, the industry includes establishments that provide paralegal, notary public, process serving, and patent agent services.

COMPETITIVE LANDSCAPE

The overall health of the global economy, and the corresponding volume of commercial transactions, heavily influences demand for legal services. Large firms achieve success by working on cross-border cases for multinational clients and constantly expanding their industry practice areas. Small firms rely on serving local clients and developing expertise in a few practice areas.

Firms large and small stand out by touting pro bono work, diversity, and corporate social responsibility. The industry faces several potential disruptors. Client law firms are relying more on in-house legal teams. Legal professionals like document preparers, paralegal technicians, and virtual ...