While this year’s LB100 has found transatlantic law firms experiencing slower revenue growth than their more tightly focused peers, an analysis of five years of data highlights how large-scale UK-US mergers are driving up profitability at a much steeper rate.
The LB100 firms which are the product of major transatlantic tie-ups – Hogan Lovells, Norton Rose Fulbright, DLA Piper, Eversheds Sutherland, Bryan Cave Leighton Paisner and Womble Bond Dickinson – increased their partner profits by an average of 69% between 2019 and 2024, significantly above the average PEP increase of 35% for all LB100 firms over that period.
The second-best performing group is the national firms, which have increased PEP by an average of 43% over the past five years, while the slowest growth was seen at London-only firms.
Average five-year PEP growth by firm category*
| Firm type | Average five-year PEP growth |
|---|---|
| International firms | +30% |
| London-only firms | +25% |
| Magic circle firms | +27% |
| National firms | +43% |
| Regional firms | +37% |
| Transatlantic mergers | +69% |
DLA and Hogan Lovells are two of three LB100 firms (alongside South West firm Ashfords) to have seen triple-digit PEP growth over five years, with TLT and Clarke Wilmott rounding out the top five.
A further 19 LB100 firms have boosted PEP by 50% or more since 2019, including strong showings from HFW, Shoosmiths and Macfarlanes (the full list of data is at the bottom of this article).
Top five firms by five-year PEP increase
| Firm | PEP 2019 | PEP 2034 | Five-year change |
|---|---|---|---|
| DLA Piper | £1.07m | £2.51m | +135% |
| Hogan Lovells | £1.04m | £2.2m | +112% |
| Ashfords | £292,000 | £593,200 | +103% |
| TLT | £350,000 | £660,000 | +89% |
| Clarke Willmott | £232,000 | £419,900 | +81% |
As well as DLA’s 135% hike from £1.07m to £2.51m and Hogan Lovells’ 112% jump from £1.04m to £2.2m, the other transatlantic firms performing strongly on a five-year metric include Norton Rose Fulbright (up 66% to £1.13m) and Eversheds Sutherland (up 47% to £1.3m).
Transatlantic firms by five-year PEP increase
| Firm | PEP 2018-19 | PEP 2023-24 | Five-year change |
|---|---|---|---|
| DLA Piper | £1.07m | £2.51m | +135% |
| Hogan Lovells | £1.04m | £2.2m | +112% |
| Norton Rose Fulbright | £687,000 | £1.13m | +64% |
| Eversheds Sutherland | £886,000 | £1.3m | +47% |
| Womble Bond Dickinson | £416,000 | £566,800 | +36% |
| BCLP | £640,000 | £764,200 | +19% |
The performance can in large part be attributed to the higher profitability of firms in the US market, but it should also be noted that transatlantic firms were the only category of firm to reduce their equity partner numbers between 2019 and 2024, with an average decrease of 23% compared to a LB100-wide average increase of 20%.
The transatlantic proposition does also offer specific benefits, with Womble Bond Dickinson UK managing partner Paul Stewart pointing to ‘a consistency of focus between the US and the UK on areas like energy and renewables, digital, and financial services’.
Top line leaders
When looking at revenue growth over five years, some of the best performers are acquisitive consolidator firms. Taylor Rose, which was founded in 2009, has made a string of law firm acquisitions over recent years, with revenue shooting up from £13.5m to £96.2m, according to its Companies House accounts. Elsewhere, Knights, perhaps the most well known roll-up firm in the UK, has completed as many as 20 acquisitions since 2018, with turnover up from just over £50m to £150m.
Top five firms by five-year revenue increase
| Firm | Revenue 2019 | Revenue 2024 | Five-year increase |
|---|---|---|---|
| Taylor Rose | £13.5m | £96.2m | +612% |
| Bond Turner | £18m | £74.8m | +316% |
| Knights | £52.7m | £150m | +185% |
| gunnercooke | £23.9m | £67.6 | +183% |
| Harrison Clark Rickerbys | £30.1m | £71.9m | +139% |
Mishcon de Reya is among the strongest performers among City firms, boosting its revenue by 70% to £302m in the five years to 2024, with its January 2023 merger with Taylor Vinters helping to fuel an 18% year-on-year increase.
‘It was the first time we’ve ever done anything on that scale’, managing partner James Libson said of the merger. ‘Anyone who’s been through such a merger would say that they’re surprised, not by the people side, which is easy, but by the technical side. It takes a lot of time and effort, and the technical stuff can get frustrating. We did that well, and quicker than expected.’
alexander.ryan@legalbusiness.co.uk
*LB100 firms by category
Transatlantic mergers: Hogan Lovells, Womble Bond Dickinson, Norton Rose Fulbright, DLA Piper, Eversheds Sutherland, Bryan Cave Leighton Paisner
Regional firms: Thorntons, Burness Paull, Brodies, Shepherd and Wedderburn, Fletchers Solicitors, Bond Turner, Veale Wasbrough Vizards, Birketts, Stevens & Bolton, Brabners, Capsticks, Michelmores, Foot Anstey, Walker Morris, JMW, Ashfords, DMH Stallard, Ward Hadaway, Cripps, RWK Goodman, Blake Morgan, Harrison Clark Rickerbys, Moore Barlow, BDB Pitmans, Hugh James
National firms: Burges Salmon, Devonshires, Keystone Law, Bevan Brittan, Mills & Reeve, gunnercooke, Ampa, Freeths, Browne Jacobson, Hill Dickinson, Weightmans, Keoghs, TLT, Taylor Rose, Irwin Mitchell, Thompsons, Shoosmiths, Gateley, Knights, Penningtons Manches Cooper, Trowers & Hamlins, Leigh Day, Clarke Willmott, Slater and Gordon
Magic circle: Freshfields, Clifford Chance, Linklaters, Slaughter and May, Allen & Overy
London firms: Sacker & Partners, Mishcon de Reya, Kingsley Napley, Lewis Silkin, Fox Williams, Wedlake Bell, Howard Kennedy, Bristows, Macfarlanes, Charles Russell Speechlys, Stewarts, Farrer & Co, RPC, Harbottle & Lewis, Travers Smith, Russell-Cooke, Forsters, Winckworth Sherwood, Fladgate, Wiggin, RBG
International firms: Kennedys, Osborne Clarke, Stephenson Harwood, DWF, Addleshaw Goddard, HFW, Watson Farley & Williams, Simmons & Simmons, Herbert Smith Freehills, Bird & Bird, Taylor Wessing, Ashurst, DAC Beachcroft, Gowling WLG, Pinsent Masons, CMS, Clyde & Co, Fieldfisher, Withers