Page 101 - The Handbook - Law Firm Networks 2018
P. 101
The Handbook: Law Firm Networks
There will be the Big 4, Grant Thornton, and BDO at the top because of an established brand. Outside of the
accounting profession itself, the other networks are best known to their individual clients but not to the other
professionals in law, insurance, real estate, etc. In this sense they are in the same position as legal networks
that are generally unknown.
BDO and Grant Thornton have the possibility to close some of the gap between themselves and the Big 4.
The other networks, however, are catching up in terms of size to Grant Thornton and BDO. However, the
other networks have issues of maturity and governance. For example, many appear to be Level 3 networks or
associations. However, the founders have not been replaced by other members as directors and management.
Even though progress toward Level 4 is slow, all accounting networks benefit from the fact that the
accounting model has been well established by the Big 4. Accounting firms know precisely what is necessary
to do in order to develop their network or association since many of the partners, marketing managers, and
accountants are alumni of the Big 4 firms. The principal impediments are identifying and arriving at a
consensus on their common, short-, medium-, and long-term interests.
Predictions:
1. While the Big 4 will retain their near-monopoly on public auditing, other firms will acquire a
greater market share. This will be the result of technology, solidifying global infrastructure, and
regulations mandating diversity in audits. The process will take a decade.
2. Members of accounting networks will add new consulting services, including legal services,
which will affect the nature of the network.
3. BDO and Grant Thornton will add market share because of name recognition. The Big 4 will
become the Big 6 in accounting publications.
4. Three or four networks will emerge to occupy the positions now held by BDO and Grant
Thornton. This may be done through alliances 432 and mergers.
5. The mid-size market will greatly expand as new business sources emerge. New forms of
business structures will create new opportunities in tax and consulting.
6. Technology will act to further consolidate the networks as a result of the cost efficiencies it can
offer.
The Last Word
In the next 10 years, as a result of converging forces described in this chapter, networks in the legal world
will dramatically change. The most significant change will occur as a result of a new generation of clients,
both individual and corporate who a comfortable with technology.
Locate Law Networks and Requests for Qualifications will change how networks are found and how
individual lawyers are selected. This technology will be combined with measurable quality standards. The
result will be a new transparency.
432 Crowe Horwath International has strategic alliance with CPAmerica International, one of the largest associations of CPA firms in the United
States. Through this alliance, we enjoy access to the expertise and resources of more than 2,500 professionals across the United States. CROWE
HORWATH, www.crowehorwath.net/about/alliances.aspx (last visited Feb. 6, 2016).
- 88 -
There will be the Big 4, Grant Thornton, and BDO at the top because of an established brand. Outside of the
accounting profession itself, the other networks are best known to their individual clients but not to the other
professionals in law, insurance, real estate, etc. In this sense they are in the same position as legal networks
that are generally unknown.
BDO and Grant Thornton have the possibility to close some of the gap between themselves and the Big 4.
The other networks, however, are catching up in terms of size to Grant Thornton and BDO. However, the
other networks have issues of maturity and governance. For example, many appear to be Level 3 networks or
associations. However, the founders have not been replaced by other members as directors and management.
Even though progress toward Level 4 is slow, all accounting networks benefit from the fact that the
accounting model has been well established by the Big 4. Accounting firms know precisely what is necessary
to do in order to develop their network or association since many of the partners, marketing managers, and
accountants are alumni of the Big 4 firms. The principal impediments are identifying and arriving at a
consensus on their common, short-, medium-, and long-term interests.
Predictions:
1. While the Big 4 will retain their near-monopoly on public auditing, other firms will acquire a
greater market share. This will be the result of technology, solidifying global infrastructure, and
regulations mandating diversity in audits. The process will take a decade.
2. Members of accounting networks will add new consulting services, including legal services,
which will affect the nature of the network.
3. BDO and Grant Thornton will add market share because of name recognition. The Big 4 will
become the Big 6 in accounting publications.
4. Three or four networks will emerge to occupy the positions now held by BDO and Grant
Thornton. This may be done through alliances 432 and mergers.
5. The mid-size market will greatly expand as new business sources emerge. New forms of
business structures will create new opportunities in tax and consulting.
6. Technology will act to further consolidate the networks as a result of the cost efficiencies it can
offer.
The Last Word
In the next 10 years, as a result of converging forces described in this chapter, networks in the legal world
will dramatically change. The most significant change will occur as a result of a new generation of clients,
both individual and corporate who a comfortable with technology.
Locate Law Networks and Requests for Qualifications will change how networks are found and how
individual lawyers are selected. This technology will be combined with measurable quality standards. The
result will be a new transparency.
432 Crowe Horwath International has strategic alliance with CPAmerica International, one of the largest associations of CPA firms in the United
States. Through this alliance, we enjoy access to the expertise and resources of more than 2,500 professionals across the United States. CROWE
HORWATH, www.crowehorwath.net/about/alliances.aspx (last visited Feb. 6, 2016).
- 88 -
