Law Firms Are Once Again Focusing on Growth in the United States
After years of globalization, some firms are pulling back to focus on building a stronger platform in the world's most lucrative legal market.
September 24, 2018 at 12:01 AM
4 minute read
In 2015, Dentons inked a deal with Dacheng, China's largest firm, creating the world's largest law firm by head count and changing the idea of what a global law firm was supposed to look like.
But earlier this spring, at a meeting with its U.S. partners, its leaders laid out with specificity a new plan.
“While we have grown dramatically in Europe, in Australia, in Singapore, in Latin America, in Africa and multiple other geographies over the last year, our top global growth priority is the U.S.,” Dentons global chief executive officer Elliott Portnoy said.
Over the last year-and-a-half, Portnoy said, the global legal giant met with clients and it became strikingly clear that they wanted broader and deeper bench strength in the U.S.
As a result, “Dentons, as a global priority, is doubling down on strategic growth in the U.S.,” he added.
All things considered, the U.S. remains the world's largest, strongest and most lucrative legal market. A 2017 study by U.K.-based market research company Acritas found that U.S. companies spend 166 percent more on legal services per dollar of revenue than companies around the globe.
“I don't see another market that's going to match the U.S.,” Hogan Lovells CEO Stephen Immelt says.
London- and Washington, D.C.-based Hogan Lovells' strategy has been to create an international firm with a strong U.S. presence, Immelt says. About half the firm's revenue is generated in the U.S. each year, which has contributed to the overall growth of the firm stateside and led to expansions in California, Houston and Colorado, he says.
But Immelt says this is different from the past, when firms with a strong U.S. presence started to build international platforms. For years, globalization has been key for a large group of U.S. law firms, but many have since halted their expansion efforts.
“I have seen firms [pull] back from the platform building that you saw 10 to 15 years ago and really focus much more on the U.S. market,” Immelt says. These U.S.-based firms see their main market as being in the U.S., so it's no longer the goal to build a 50-office network, he notes.
The United States' strength in the global legal market has also drawn attention from across the pond, particularly from London's top firms.
“Magic Circle firms have been growing internationally for decades but are struggling to gain market share in the U.S.,” says Dave Koschik, a member of White & Case's executive committee and head of its U.S. growth team.
Allen & Overy is reportedly in merger talks with O'Melveny & Myers, a potential move that has sent ripples throughout London and signals an increased desire and interest to finally break through in the U.S. legal market.
“The U.S. is the largest and most lucrative legal market in the world, so it makes sense that firms with global ambitions would want to be here,” Koschik says.
Read more:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllFrom ‘Deep Sadness’ to Little Concern, Gaetz’s Nomination Draws Sharp Reaction From Lawyers
7 minute readDechert 'Spark Tank' Competition Encourages Firmwide Innovation Focus
Akerman Opens Charlotte Office With Focus on Renewable Energy, Data Center Practices
4 minute readTrending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250