A recent analysis of law firm financials in 2014 shows that a growth in demand for transactional practices is occurring, according to the Wall Street Journal.
“Through the first quarter we’ve seen strength in M&A, corporate work, real estate, tax,” said Mark Medice, Senior Director and head of Peer Monitor, a division of Thomson Reuters.
Medice said that 70 percent of the firms looked at showed transactional growth in the first quarter of 2014. He also noted that this helped to increase overall demand.
In the first quarter, demand for corporate work increased by 5 percent compared to the first quarter in 2013. It has also increased in three of the last four quarters. Tax work demand increased by 6.7 percent and real estate work demand increased by 3.7 percent. This is the fourth straight quarter that demand for real estate work increased.
“The big difference now is there seems to be more uniformity,” Medice said. “We want to cautious about overplaying it, but it is new.”
In the first quarter of 2013, only 32 percent of law firms saw transactional growth.
Peer Monitor said that litigation demand, which accounts for 32 percent of the overall market, is still disappointing. Demand for litigation dropped by 1 percent compared to the first quarter of 2013. This is the seventh straight quarter in which demand dropped. Bankruptcy demand dropped by 5.9 percent.