Below the bar: Uncertainty is expected to limit M&A activity and cause revenue to fall

Solicitors, barristers, patent agents, notaries and bailiffs carry out legal activities on behalf of private and corporate clients. Over the five years through 2018-19, industry revenue is expected to decline at a compound annual rate of 0.3%, being hampered by the number of residential property transactions falling from 2016-17 and a significant decline in M&A activity in 2017-18. The industry is expected to be negatively affected by the uncertainty brought about by the EU referendum, with industry revenue expected to fall by 4.4% in 2018-19 to £32.3 billion...read more.

Industry Statistics & Market Size
Revenue
£32.3bn
Annual Growth 14-19
-0.3%
Forecast Growth 19-24
Profit
Employment
364,930
Businesses
33,663

Industry Threats & Opportunities

  • The introduction of alternative business structures has increased price competition
  • Many legal firms have dropped their hourly rates as competition has risen
  • Automation is expected to rise in the coming years as the majority of firms invest more in technology
  • Industry Report - Industry Key Buyers Chapter

    The concentration level in the Legal Activities industry is low. The top four firms are expected to account for just 6.7% of industry revenue in 2018-19. The industry is characterised by a large number of small law firms specialising in particular areas of law. The latest data available from the Office for National Statistics shows that 83.8% of enterprises in the industry employed fewer than 10 people in 2017. Most industry operators cater to a limited geographic area and are run as sole proprietorships or small partnerships. The large law firms can capture business from large multinational and corporate clients. These firms are large because they operate internationally and expand by merging with or acquiring foreign law firms...purchase to read more.

    Additional Insights for the Legal Activities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Legal Activities Industry are

  • Having a good reputation
  • Proximity to key markets
  • Having a high prior success rate (including completed prior contracts)
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Number of businesses in the Legal Activities industry impact industry performance..

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    What's in this report

    What is the Legal Activities Industry?

    This industry includes firms that provide legal services, including solicitors, barristers, patent agents, notaries and bailiffs. Lawyers provide advocacy and advice on a range of topics, such as commercial, property, private, criminal and family law. Law courts are not covered in the industry.

    Industry Products
  • Advising on corporate structuring, finance, and other affairs
  • Advising on personal law
  • Advising on property law
  • Advising on employment law
  • Advising on administrative and constitutional law
  • Other legal services
  • Industry Activities
  • Commercial law services
  • Personal legal services
  • Property law services
  • Administrative and constitutional law services
  • Criminal law services
  • Intellectual property law services
  • Notary services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Number of businesses
  • Number of residential property transactions
  • Equity capital raisings
  • Mergers and acquisitions involving UK companies

  • Current Performance
  • A different landscape
  • Competitive pressures
  • Artificial intelligence
  • Legal aid woes
  • Chart: Revenue Growth

  • Industry Outlook
  • Referendum effects
  • Technological integration
  • Legal fees
  • Cutting claims
  • Table: Legal Activities Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Legal Activities Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Property Unit Trusts
  • Investment Banking & Securities Brokerage
  • Tax Consultants

  • Key Selling Industries
  • Office Furniture Wholesaling
  • Universities

  • Products & Services
  • Advising on corporate structuring, finance, and other affairs
  • Advising on personal law
  • Other legal services
  • Advising on property law
  • Advising on administrative and constitutional law
  • Advising on employment law
  • Chart: Legal Activities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Banking, finance, insurance and other business clients
  • Households
  • Government clients
  • Chart: Major Market Segmentation for the Legal Activities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Rent, utilities and depreciation
  • Purchases
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Legal Activities

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Legal Activities Industry

  • Industry Globalization
    Linklaters LLP, Allen & Overy LLP, Clifford Chance LLP, Freshfields Bruckhaus Deringer LLP,
  • Table: Linklaters LLP - financial performance
  • Table: Allen & Overy LLP - financial performance
  • Table: Clifford Chance LLP - financial performance
  • Table: Freshfields Bruckhaus Deringer LLP - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Legal Activities Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Legal Activities Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Initial Public Offering
  • When a company issues shares to the public for the first time as a means of raising capital.
  • M&A
  • Stands for mergers and acquisitions.
  • Magic Circle Firms
  • An informal term for the five leading law firms headquartered in the United Kingdom.
  • Patent
  • A right granted by the government that gives an inventor or company the sole right to manufacture and use an invention for a period of up to 20 years.
  • Trademark
  • A mark applied to goods to identify them as coming from a particular manufacturer or trading source.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Legal Activities market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Legal Activities:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Legal Activities market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Legal Activities, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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