Legal Services

Brief Excerpt from Industry Overview Chapter:

Firms in this industry provide the services of lawyers to individuals, businesses, government agencies, and nonprofits. Major firms include Clifford Chance and Linklaters (both based in the UK), as well as Baker & McKenzie, Gibson, Dunn & Crutcher, Greenberg Traurig, and Latham & Watkins (all based in the US).

The global legal services market is forecast to generate nearly $650 billion by 2015, according to Global Industry Analysts. Of the world's 100 highest-grossing firms, about 80 are headquartered in the US and about 10 are based in the UK. Larger firms continue to expand their global footprint to take advantage of rising demand for international law expertise.

The US legal services industry includes about 180,000 law offices with combined annual revenue of $245 billion and is forecast to grow at a moderate rate over the next two years. Business transactions are a key driver of growth.

COMPETITIVE LANDSCAPE

Demand depends on the volume of commercial and civil legal transactions and court and criminal cases. The profitability of individual firms depends on the partners' reputation and ability, as well as effective case management. Large firms have advantages in serving corporate customers with a wide range of needs. Small firms can compete successfully providing specialized expertise or superior outcomes and operating in a local market. The industry is highly fragmented: the 50 largest firms generate about 15 percent of revenue....