Flatlining Profits & Unsteady Growth: UK's Elite Law Firms Battle for Foothold in the US

Summary for an aspiring lawyer:

This article discusses the financial position of the UK's "Magic Circle" corporate law firms (Clifford Chance, Allen & Overy, and Linklaters) and their ongoing efforts to expand in the US market. The firms are experiencing stagnant partner profits despite increasing revenues, primarily due to rising staff costs and a decrease in demand for services. Two firms, Allen & Overy and Freshfields Bruckhaus Deringer, are at critical junctures of their US expansion strategies, with Allen & Overy planning a $3.4 billion merger with Shearman & Sterling and Freshfields investing in new offices, including in Silicon Valley. The firms are grappling with the challenge of balancing expansion costs and revenue growth, especially as the demand for mergers and acquisitions has slowed down from its 2021 peak.