At the beginning of the Covid pandemic, German law firms found themselves wary of what the future might hold and prepared for the worst. Two years on, most say their fears were unwarranted – several firms have reported the last financial year to be their strongest to date. ‘The pandemic has shown the enormous resilience of the independent law firm model,’ says Alexander Ritvay, co-managing partner at Noerr. ‘The legal market in Germany recorded a 6% revenue increase in 2020 [to €253m]. We outperformed the market, as we increased our top line by 10%. The ongoing year is also looking quite strong.’
This optimism can, in part, be attributed to the fact that the predicted big slump in commercial and corporate mandates never arrived. M&A, private equity and restructuring are identified as current key drivers of activity in the legal market. ‘With the low interest rates and the liquidity that’s in the market, we believe that transactional activity – both domestic and foreign – will continue and probably increase in the forthcoming 12 months,’ says Ritvay. ‘This is likely because there is also significant reorganisation as well as restructuring going on in many industries.’
Subscriber Access
You must be logged in to view full premium content.