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.
Few areas of the law are changing more rapidly than Cannabis Law. Legal and ethical issues regarding marijuana (medical and adult-use), hemp and CBD touch on practically every area of the law: from litigation and contracts, to licensing and zoning, to business formation and insurance. Having a working knowledge of the basics is essential. Plan now to attend the free, one-hour, live CLE webinar “Cannabis Law Chapter One: Covering the Basics from Ethics to Insurance” on March 30, 2022 at 12 noon CST. This webinar features two of the most experienced, knowledgeable and impactful lawyers in the U.S. on cannabis law: Lisa L. Pittman, chair of the American Bar Association Cannabis Law & Policy Committee, whose pioneering efforts led the ABA to formally embrace this emerging practice area; and Khurshid Khoja, chair of the National Cannabis Industry Association, the country’s oldest and largest cannabis trade organization. The course will highlight key substantive topics, address ethical concerns, offer best practices for risk management, and identify ethical concerns. It will also give you online links and key resources for your continuing education. This free, one-hour webinar is the latest in Alta Pro’s ongoing series of cutting-edge CLE programs. Register here.
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.
Are you taking advantage of the valuable resources available through the Alta Pro Risk Purchasing Group (RPG)? If not, register here and start enjoying the benefits. When your law practice has professional liability coverage through Alta Pro Insurance, you’re automatically enrolled in the RPG. Among the benefits: free, cutting-edge CLE webinars featuring top experts tackling timely topics; the Pro Practice Playbook; the Pro Practice Blog; Reminger’s ProLink risk management assistance; Reminger’s Claim Repair Hotline; discounts on CLIO practice management software; and access to the Risk Pro, who can help keep your firm safe and successful. Stay ahead of the curve with Alta Pro Risk Purchasing Group.