Some 31% of law firms have reportedly “outperformed” profit expectations since the pandemic, according to the latest Bellwether report by LexisNexis Legal and Professional.
The report highlighted that 93% of the surveyed firms had “confidence” in their future with them performing higher than all pre-pandemic scores.
Unlike the larger end of the market, smaller law firms predominantly grew organically, rather than higher risk M&A.
Many firms reported that they had grown and diversified practice areas by acquiring staff that had been “laid off” by other firms quickly and easily.
However 70% of respondents predicted that there will be “tough challenges” ahead with the cost of Professional Indemnity Insurance (PII) premiums having risen “dramatically”, putting more pressure on the operational costs of running a law firm.
Chris O’Connor, director of solutions, said: “It has been a tough slog for law firms through the pandemic, with many depending on government grants and furlough to survive.
“So, it is excellent to see the strong growth trajectory in the market. But, with stress and wellbeing continuing to be a challenge – it is clearly crucial for firms to identify the root cause and seek to invest in solutions that will help to mitigate it.”