One in three law firm managers expect to be involved in a merger or acquisition during the next year, according to joint research published by accountancy firm BDO and legal consultancy Jomati.

The survey, which canvassed the opinions of management at 55 UK and international firms, reveals that two thirds of law firms have been involved in some form of merger or acquisition talks during the last 12 months, with 82% of those questioned stating that consolidation will be the greatest force for change in the legal sector in the coming years.

However, just 19% of respondents believed that a merger would represent the greatest opportunity for growth at their firm.

Bringing in effective lateral hires was cited by 46% of respondents as the best growth opportunity, while winning new clients was supported by 44%.

The research follows the news that Lovells and Hogan & Hartson are in the early stages of merger talks, which if confirmed would create a top 10 global law firm by revenue.

BDO professional services partner Colin Ives commented: "It is quite remarkable that firms are losing their nerve when it comes to mergers and acquisitions. The current downturn is the prime opportunity for law firms to consolidate or acquire. In a downturn disparities are evened out and partners are more accepting of the need for consolidation."