"When you're operating in a modest demand growth environment overall-meanwhile, the cost of running these very sophisticated businesses is increasing-we will see continued consolidation occurring. When you're in an industry that grows demand on average less than 1% from one year to the next, the way to outperform your peers is to buy that growth [through mergers or lateral hiring]."
"The way to outperform your peers is to take market share from others. - Gretta Rusanow, managing director and head of advisory services at Citi's Law Firm Group, in comments given to Bloomberg Law, concerning the likelihood that law firm mergers will continue apace in 2026 after a year of consequential combinations in 2025. Staci Zaretsky is the managing editor of Above the Law, where she's worked since 2011. She'd love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques."
Law firms are facing very modest demand growth, often under 1% annually, while the cost of operating sophisticated legal businesses is rising. Firms are turning to consolidation through mergers and lateral hiring to buy growth and capture market share from competitors. Significant combinations in 2025 illustrate this trend, and further merger activity is expected in 2026. Acquiring scale and market share is positioned as the primary method to outperform peers when organic demand expansion is limited. Cost pressures and stagnant demand are reshaping competitive strategies across the legal industry.
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