UK law firm mergers maintain momentum despite slight slowdown, new research finds
updated on 30 September 2024
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It’s been another strong year for UK law firm mergers despite a slowdown, according to new research from accountancy firm Hazlewoods. The past year saw 121 mergers take place, reflecting a strong recovery from the 10-year low point in 2021. This follows 122 merges in 2022, which marked a 23% increase from the 99 mergers recorded in 2021.
One of the most notable mergers of the year saw magic circle law firm Allen & Overy LLP merge with New York-based Shearman & Sterling in May 2024 to create mega firm A&O Shearman. Other notable mergers include Radcliffe Lebrasseur with Weightmans LLP in October 2023 and Mischon de Reya LLP with Taylor Vinters in January 2023.
The rise in law firm mergers is attributed in part to consolidator firms acquiring other practices to “boost their growth”. These firms, which are usually backed by private equity funds, are looking to make serial acquisitions of firms that allow them to keep adding fee earning lawyers onto a cost base that they keep firmly under control.
One notable private equity-backed merger in 2024 was Solaris Law acquiring Shoosmiths' business-to-business recoveries division.
Hazelwoods has also suggested that the drive to invest in AI tools could drive additional mergers in 2024. A partner from Hazlewoods, Ian Johnson, said: “As the requirement for AI in the legal profession grows, some firms may well decide that being part of a larger firm is the only way to make investments on the scale needed.”
