The law management benchmarking survey -- conducted by the Law Society of England and Wales and reported by weekly newspaper, the Law Gazette -- found the majority of firms looking to merge will seek to do so with other law practices rather than independent financial advisers, accountancy practices or other non-lawyer entities.
Non-lawyer owners
However, one in five of the 166 firms responding said it would seek external investment for expansion. Of those registering an interest in external investment, bringing in one or more non-lawyer owners was a popular option.
Around one in six respondents claimed it would sell the practice to a third party if there was an opportunity.
The pull of marketing networks had much less effect on firms, with fewer than 10 per cent reporting any likelihood of joining a group such as QualitySolicitors, Connect2Law or Local Law in the next few years.
Robust management
Law Society president Lucy Scott-Moncrieff commented: ‘There's no one-size-fits-all approach that will help firms emerge from the recession or adapt to tough market conditions facing the sector, but for many law firms, a robust management system underpins their success.’
The survey also revealed that median fee income increased by 3.6 per cent last year, outpacing the 1 per cent growth seen the year before.
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