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Top UK Firms' Practice Sectors >>
Recent History and the Future
- The top 20 law firms in the UK have remained largely
unchanged.
- Reluctant consolidation among smaller firms.
- Legal industry recovering after 3 years of tough
conditions.
- Firms
have pruned partners to preserve PEP.
- But
have emerged leaner and in better shape for the future.
- Legal
services will be liberalized by the LLP model.
- A new phase of growth is anticipated.
- The
UK's largest firms have followed a path of international expansion.
- This
has led to an increase in size and revenue but a decrease in profit margin.
- However,
many lessons have been learnt about international strategy and many may
continue to aggressively pursue the U.S. market.
What
have been the trends in 2007 for each practice area?
Corporate
- M&A
market remains buoyant with many large deals.
- However, focus has moved away from highly leveraged
(debt funded) buyouts by private equity buyers to corporate-on-corporate deals.
Finance
- Continuing credit crisis and tightening of credit leading
to:
- Recent crash in leveraged buy out (LBO) deals.
- An increase in restructuring mandates due to more
companies facing financial difficulties because of the drying up of credit.
Real Estate
- Very strong year.
- Profitability is now competing with that of Corporate due
to:
- Increased investment in real estate.
- Growing complexity of transactions.
- Blossoming regeneration.
- REITs providing a new source of work.
- Worries about raising interest rates.
Litigation
- A few big cases, but long term trend towards mediation ADR
to avoid costly litigation.
- However,
fresh hopes bank-on-bank litigation following the credit crisis.
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