Competition for midmarket deal work is heating up.

Falling demand in corporate practices has meant a return to more modest transactions for Am Law Second 50 firms that seized big-ticket deals in the deal boom of 2021, according to firm leaders and industry consultants, and increasingly, large firms are looking to capture work where it is available—and much of it is in the middle market.

There have already been signs of renewed interest in the midmarket in 2023. Though the strategy is not unheard of during economic downturns, the trend escalates competitive pressures in a segment that is already quite crowded and will require changes in pricing strategy for large firms interested in capturing more of the work.