Page 18 - Lawyers and Accountants - The Future of Professional Services -1
P. 18
Lawyers and Accountants 2020 - 2024
IV. Threats to Law Firm Networks by the Big Four
In a global market, it is all about numbers and professional media coverage.
A comparison of the number of countries covered by the Big Four and Biglaw shows why the competition
among local firms reflects the tectonic shift in the referral pattern.
The top 10 largest networks have a presence
in, on average, 80 countries. This is similar to
the Big Four. Biglaw averages 30 countries.
However, when one looks beyond the
numbers to the location and relative size in
the markets, there is no comparison. While
many network firms are of small and medium
size, a number of law firm networks include
the very largest firms in these countries.
In the case of the Big Four, they have been in
each of those 80 countries for decades. This is
similar to local law firms. Since they are
networks, creating a substantial legal practice
is not that difficult. Once created, they will be
in direct competition with local indigenous
firms in a relatively short period of time.
The Big Four have been expanding in legal for
more than 20 years in these countries. While
the focus of recent articles and discussion is
on the effects on “Biglaw,” the real and
immediate effects will be felt by law firm
networks and their respective members
because of head-to-head competition.56
Why? The largest law firms are generally
located in only 30 countries.57 On the other hand, law firm network members are in 80 countries without
significant international competition — until now. Network members have or will have several areas of
competitors in the Big Four. Because the Big Four are networks (not firms), their expansion is likely to be
exponential. Additionally, local Big Four firms are and have been part of the native business community for
decades. This greatly increases the threat, since they are all indigenous.
56 Jim Middlemiss, Accounting for Legal Work, CANADIAN LAWYER (April 2, 2018), http://www.canadianlawyermag.com/author/jim-
middlemiss/accounting-for-legal-work-15535/.
57 Id.
15
IV. Threats to Law Firm Networks by the Big Four
In a global market, it is all about numbers and professional media coverage.
A comparison of the number of countries covered by the Big Four and Biglaw shows why the competition
among local firms reflects the tectonic shift in the referral pattern.
The top 10 largest networks have a presence
in, on average, 80 countries. This is similar to
the Big Four. Biglaw averages 30 countries.
However, when one looks beyond the
numbers to the location and relative size in
the markets, there is no comparison. While
many network firms are of small and medium
size, a number of law firm networks include
the very largest firms in these countries.
In the case of the Big Four, they have been in
each of those 80 countries for decades. This is
similar to local law firms. Since they are
networks, creating a substantial legal practice
is not that difficult. Once created, they will be
in direct competition with local indigenous
firms in a relatively short period of time.
The Big Four have been expanding in legal for
more than 20 years in these countries. While
the focus of recent articles and discussion is
on the effects on “Biglaw,” the real and
immediate effects will be felt by law firm
networks and their respective members
because of head-to-head competition.56
Why? The largest law firms are generally
located in only 30 countries.57 On the other hand, law firm network members are in 80 countries without
significant international competition — until now. Network members have or will have several areas of
competitors in the Big Four. Because the Big Four are networks (not firms), their expansion is likely to be
exponential. Additionally, local Big Four firms are and have been part of the native business community for
decades. This greatly increases the threat, since they are all indigenous.
56 Jim Middlemiss, Accounting for Legal Work, CANADIAN LAWYER (April 2, 2018), http://www.canadianlawyermag.com/author/jim-
middlemiss/accounting-for-legal-work-15535/.
57 Id.
15
