Firms with a global footprint are planning to expand and firms based solely in the UK are considering international growth, according to HSBC UK’s latest law firm strategy and investment snapshot.
The banking giant spoke to 95 law firm leaders about the changing opportunities and challenges in the market, such as strategic growth decisions and investment plans.
According to the briefing paper, 84% of firms with an international footprint are planning to expand further, the majority being firms with revenues over £100m. Of that 84%, nearly half plan to grow their national presence with new offices or bigger teams. The proportion of firms with offices solely in the UK or Ireland pursuing international growth has risen from 6% last year to 13%.
A third of leaders said their firm has considered international expansion but faced barriers, such as local regulations in target jurisdictions.
‘There is the significant cost of overseas offices [when] most international work is routed through London anyway,’ said one respondent. ‘Best friends’ and a similar network of firms were highlighted as routes for international support.
Donney Seow, chief operating officer at Hogan Lovells, said many firms have been preparing behind the scenes for the opportunity to open in India. ‘Timing and nature of the presence will depend on regulatory change, but it’s a jurisdiction we will be seriously focused on for growth,’ Seow said.
Firms are expanding in Saudi Arabia (pictured above) after a 2022 change to rules restricting foreign lawyers from working in the country.
Nearly half of leaders expect their firms to be involved in a merger or acquisition.
