What does 2025 & beyond hold for law firms and lawyers?

(Spoiler: consultancy practice is the solution).

Over the past quarter of a century, the profession has undergone fundamental cultural, structural and permanent changes which have not arisen out of tech advances alone. For me, it began with the arrival of US firms in the 90s and with them, the “always on” workplace, punishing billing targets and ‘star’ players.

It’s hard to remember now perhaps but for a time, joining a US law firm was seen, notwithstanding the salaries on offer, as a déclassé move and ‘Magic-Circle’ firms could retain partners and assistants on their reputational allure and name-recognition. But, in the end, the mighty dollar prevailed and the start of polarisation.

We’re used to hearing about polarisation in geo-politics but the same is true of the City’s legal market. In the 2010s, as the largest law firms consumed an ever-greater market share post the 2008 financial crash, sensible mid-market firms looked to shore up revenues through consolidation. Two of my former firms, McGrigors and Nabarros were highly successful with this approach.

And we know, within the largest City firms, lawyers are richly rewarded for the ‘pound of flesh’ they are more often required to give. However, the price is not just paid by those at the top. Over the past 15 years, a series of economic crises has contributed to falling lawyer salaries (outside of the top-tier law firms) – whilst the pressure to bill (not less than 3x annual salary), billing targets and business development pressures have remained the same.

The reality of being a solicitor in City in the 21st Century is that the job no longer offers job security and longevity regardless of your qualifications, expertise or experience. The past 24 years have shown us that we are the lawyers we make of ourselves.

In the light of all this, it is not surprising that consultancy firms are the fastest growing sector in the profession. Once seen as the option only for the tail-end of one’s legal career, they have over the past few years come to represent a positive choice: to assert agency in a career that too often makes experienced legal professionals feel expendable. Instead of running to stand still, consultancy firms provide lawyers with the right skills and client relationships a way of working that recognises and acknowledges them.

We are not made by the firms for which we toil. We create our futures with the client relationships we form and sustain through our expertise. In my view, consultancy firms are the structures and systems that best reflect that reality.

And so, as we go into 2025, I believe that consultancy will replace partnership as many lawyers’ professional goal. Partnership no longer guarantees – for most lawyers – a healthy and sustainable income and career. That future depends solely on client relationships and billings wherever you practice. So, with that in mind, the freedom to service clients and the financial advantages that go with the consultancy model will become more and more obvious.

But a word of caution: as choice in this market expands, it needs to be recognised that the quality, offering and in particular, the financial stability of consultancy law firms are highly variable. No two consultancy law firms – even if on paper they offer the same % deal – are the same. Just as issues of culture, support and opportunities vary within traditional law firms, the same considerations need to apply when a lawyer is looking at joining a consultancy firm.

I am proud to be a director of a consultancy law firm that is supported by a long-standing and highly regarded professional services company and an experienced executive board that puts culture, support for lawyers and financial standing as pillars of success.

If you want a non-committal chat about joining us, please get in touch.

Martin Finnegan

Chief Commercial Officer

Martin Finnegan is Chief Commercial Officer of Punter Southall Law. Martin has spent his entire career advising corporate clients – both publicly listed and private owner-managed, from start-up to FTSE 250 – and was formerly a partner with Nabarro LLP (now part of international law firm CMS) where he co-chaired the Equity Capital Markets Group and prior to that was Head of Capital Markets at McGrigors (now part of international law firm Pinsent Masons). Martin founded and ran a corporate boutique which he successfully led for 9 years.

Martin joined Punter Southall Law in 2020 in its first wave of recruitment of partners from leading City firms to its uniquely positioned platform, the only platform law firm to have the backing of a large financial service group, driving opportunities for its lawyers and clients.

Martin is also a non-executive director of Tower Trading Group (TTG), a City based proprietary trading group supporting over 200 professional traders across the globe, trading multiple derivatives markets. Martin has overseen TTG’s legal function -in an outsourced general counsel capacity- since 2012 managing a range of complex legal issues and instructing law firms domestically and internationally in seeking to deliver the best legal outcomes for TTG.

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[email protected] 07974 726875

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