Legal Services Industry Overview

Excerpt from Legal Services Report

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

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.

Products, Operations & Technology

Civil law practices account for nearly 90 percent of industry revenue; criminal law practices account for about 4 percent. Of civil practices, services to businesses account for 40 percent of industry revenue; other civil law, 15 percent; civil negligence, 12 percent, real estate law, 9 percent; and labor and employment law, 5 percent.