Citi Private Bank Law Firm Group and Hildebrandt Consulting Issue 2022 Citi Hildebrandt Client Advisory - Yahoo Finance
U.S. Law Firm Industry wraps up one of the strongest years on record with growth levels not seen since pre-2008
NEW YORK, December 09, 2021--(BUSINESS WIRE)--Citi Private Bank Law Firm Group and Hildebrandt Consulting today released their 2022 Citi Hildebrandt Client Advisory, which establishes the broad landscape for the law firm industry, how firms are responding to industry, economic and market challenges, including with progress in tackling the Covid-19 pandemic, and their best opportunities for growth in the year ahead.
Coming off a better than expected year in 2020, the Client Advisory finds that law firms across all segments of the industry saw strong growth this year. The average revenue growth is expected to be 14.7% over the same period of 2020, easily absorbing expense increases driven heavily by compensation pressure tied to an acute talent war. A delayed return to the office, however, kept anticipated levels of operating expense growth depressed. Looking to 2022, strong demand levels are expected to continue, albeit with some moderation in the growth levels compared to this year. The practice areas where we anticipate the most growth opportunities are in corporate/mergers and acquisitions, litigation and regulatory/investigations/compliance, finance and capital markets, and funds/investment management.
To date, the compensation expense pressure caused by the talent war has resulted in a 14% increase in compensation expenses, and is the primary driver of the 8% total expense growth seen year to date. This pressure was caused by the demand for law firm services outstripping the supply of lawyers, creating the acute talent war. Meanwhile, the delay in returning to the office has led to more moderate growth in operating expenses than anticipated, up just 3% for the first nine months. In 2022, accelerated expense growth is anticipated as firms return to the office in some form and there is a gradual return of travel and business development expenses, as well as rising infrastructure spending.
source: https://finance.yahoo.com/news/citi-private-bank-law-firm-120000247.html
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