As law firm leaders gear up for 2025, the industry is anticipating a strong rebound in mergers and acquisitions (M&A), alongside the growing influence of artificial intelligence (AI) and heightened attention on London as a key market.
Top executives from prominent global law firms, including Linklaters, Clifford Chance, Weil Gotshal & Manges, Dentons, Freshfields, and Herbert Smith Freehills, have shared their priorities for the year ahead, citing M&A, private capital, technological advancements, and cybersecurity as key focal points.
Despite a backdrop of global uncertainties, law firm leaders are optimistic about the revival of the transactional market, particularly in M&A and private capital. Many are positioning their firms for an influx of deals from corporate clients and private equity firms.
Paul Lewis, managing partner at Linklaters, expressed confidence in the recovery of dealmaking: “The deals market is back, the financing markets are back, and the investment outlook is looking positive.” Linklaters’ recent work includes advising Barratt Developments on its bid for Redrow and assisting Mondi with its pursuit of DS Smith, highlighting the firm’s involvement in significant transactions.
Similarly, Clifford Chance’s managing partner, Charles Adams, sees substantial opportunities for growth in international deals, particularly those involving private capital and asset management investments. He remarked, “We anticipate an increasingly dynamic and resilient private credit market.”
Freshfields’ managing partner, Mark Sansom, also expects a strong growth trajectory in the UK, with a focus on private capital, M&A, and regulatory work, further reinforcing the importance of the London market.
However, challenges remain, particularly due to geopolitical factors. As political and economic landscapes shift, law firms are bracing for continued complexity in capital structures and regulatory frameworks.
Weil Gotshal & Manges, with its newly appointed leadership in London, predicts an uptick in major deals post-2024 elections. Co-managing partner Jonathan Wood noted that private equity will see greater focus on portfolio liquidity and exit strategies. However, his colleague David Avery-Gee cautioned that “continued disruption across global politics and technology will influence all areas of the market.”
The rise of generative AI is creating a transformative shift within the legal sector. Law firms are increasingly turning to AI to enhance efficiency and offer more personalized client services. According to a recent LexisNexis survey, the use of generative AI among lawyers surged from 11% in mid-2023 to 41% by September 2024.
Paul Lewis from Linklaters highlighted AI as a critical area of investment: “AI is accelerating digital change and will bring a competitive advantage to those who harness it.” The firm is not only incorporating AI into its operations but also advising clients on building their own AI strategies.
Dentons’ CEO, Kate Barton, echoed this sentiment, emphasizing how AI is reshaping legal work and client expectations. “Clients are looking for more personalized, proactive legal advice, with firms expected to understand and anticipate their business challenges beyond traditional legal matters,” she said.
While AI presents new opportunities, the threat of cyberattacks remains a concern. Clifford Chance’s Adams emphasized the importance of robust cyber resilience strategies, noting increased demand for legal solutions that address governance, engagement, and response to cyber threats.
The year ahead promises to be a transformative one for the legal industry, with opportunities for growth in M&A, private capital, and the integration of AI. Law firms are keen to adapt to new technologies and evolving client needs, while navigating the complexities posed by geopolitics and cybersecurity threats.
As firms continue to position themselves for success, London remains a central hub for legal services, with law firm leaders focused on strengthening their presence in the UK market.
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