Ninety-five per cent of managing partners at the UK's leading law firms predict major consolidation at the top end of the legal sector over the next two years, a survey of more than 100 of the UK's top 200 law firms shows.

Increased competition, client expectations, the requirement for growth and enhancement of reputation are the forces increasingly driving top UK law firms into the arms of merger partners, the research by Byfield Consultancy and partnership specialists Fox Williams indicates, with 45% of firms that have not yet merged saying they would consider a tie-up within two years.

This comes despite the majority of respondents from merged firms (57%) saying most mergers taking place over the last five years had not been successful.   Those from merged firms said the function they would most like to have improved around the time of integration was internal communications.

The results indicate that law firm bosses tend to go it alone when it comes to seeking out a merger partner though. Only 6% of merged firms said they had instructed external lawyers for merger advice, while just 16% of merged firm respondents confirmed they engaged a third-party broker to approach a prospective merger partner.

At an event to launch the study this morning (27 January), legacy Speechly Bircham managing partner, now Charles Russell Speechlys managing partner James Carter (pictured, left), said the key was to "be honest" with firms management talk to.

"If there are partners or practice areas that just aren't good enough, don't kid the other firm…It's very easy to say that the other firm does something different from us, so it can't be right, but there are loads of historical reasons why people work or budget differently, and you need to understand that."

Growth was singled out over financial stability as the principal driver for merging by both merged and non-merged firm respondents , with 81% and 73% respectively citing it as a key reason for linking up.

"Economies of scale at best pay for the cost of the merger over one to two years," said Carter. "If you are going into a merger looking for cost savings you aren't going to get what you want; it should be about the top line."

Gus Sellitto, managing director of Byfield Consultancy, also predicted more three way mergers in the future.