Law firms are expecting to see revenue growth of five percent this year.
This follows an astounding growth rate of 14 percent in 2021, when firms enjoyed better than expected financial results during the pandemic.
“U.S. law firms facing economic threats of inflation and rising interest rates project 5.3 percent revenue growth this year, down from a 14 percent increase in 2021,” according to Bloomberg Law, citing a survey by Wells Fargo. “The prediction is close to the result in 2019, the last full year before the pandemic, when firms had 4.6 percent revenue growth.”
Over the past two years, the hottest practice areas have included business law, litigation, corporations, and mergers and acquisitions. But all areas from family law to bankruptcy have been robust.
Even so, the rosy forecast is tempered by concerns over inflation and instability at home and worldwide.
Read “Law Firms See 5% Revenue Growth After 2021 Boom” in Bloomberg Law here.
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Law Firms See Five Percent Growth
Here are some takeaways from the Bloomberg Law article:
- Firms that are diversified into areas like bankruptcy and corporate restructuring are in the best position to weather economic difficulties.
- Litigation is poised to take off as individuals and businesses pursue pandemic-related lawsuits.
- “The top 50 law firms as ranked by American Lawyer grew revenue by 16 percent last year, the Wells Fargo survey showed. Law firms ranked 51st to 100th by revenue had 11 percent growth, while the 101st to 200th biggest firms had 9 percent growth, the survey showed,” according to Bloomberg.
- “Firms benefited from growth in demand, rates, better collection of debts, and stronger control of expenses.”
- Firms in California and the Northeast experienced the strongest growth.
- The weakest markets were in the Midwest and Southwest.
Source: Law Firms See 5% Revenue Growth After 2021 Boom, Survey Shows (bloomberglaw.com)
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