Mergers a ticket to survival for law firms
What else might be driving the flurry of deals between firms?
Hello Rainmakers,
Proudly boasting its status as the UK’s second largest legal hub outside London, the Yorkshire market has seen a surge in deal activity recently - and we don’t mean transactions for clients.
The region’s legal eagles have been busy buying up rivals and merging to form legal powerhouses. With private equity firms increasingly investing in the region’s legal sector, Sheryl Moore looks at what’s driving this flurry of deals.
This is free to all who have signed up, however Rainmakers subscribers get two unique pieces a week, but also full access to our back catalogue of investigations, scoops, and insights, including updates from The Secret Investor, interviews with entrepreneurs, and the leaders from VC and PE investors like Endless, and River Capital, Foresight, Mercia, Puma and LDC.
When Wilkin Chapman announced its merger with Yorkshire law firm Rollits, the move was described as ‘market and client driven’. The legal world is changing fast. Once defined by tradition, slow-moving hierarchies and regional loyalties, mid-sized firms are now facing a stark reality: scale matters. Mergers for some aren’t just an option - they’re the ticket to survival.
By joining forces, firms can scale operations, broaden expertise, invest in cutting-edge technology and compete effectively in a market where speed, innovation, and efficiency increasingly determine success.
Size brings resilience. With corporates slashing budgets and clients scrutinising every invoice, bigger firms can spread costs across a larger revenue base. Competition is fierce. On one side, sprawling national and international players dominate; on the other nimble digital boutiques can undercut on price and move at lightning speed.
Clients are also driving the change. They want an integrated service where one firm handles everything from M&A to employment law to property. Mergers can offer a shortcut - bolt on expertise instead of building it from scratch.
The merger earlier this year of Wilkin Chapman and Rollits created a law firm with a combined turnover of £40m and more than 500 people, including 70 partners – the merged entity claimed it will be the largest law firm operating out of both Lincolnshire and Yorkshire and has a combined history going back more than 300 years.
Robin Simmonds, chief executive of Wilkin Chapman, said: “We believe the new firm will provide our clients with the responsive, personal tailored support that they expect.”
Geography matters as well. Expanding into new regions taps fresh clients and cushions against local market swings.
Moves like Flint Bishop’s from the East Midlands into Yorkshire following last month’s acquisition of 130-year-old Lupton Fawcett, demonstrates how consolidation can become a springboard for national reach.
The move saw the workforce increase to more than 420 employees and push annual turnover beyond £40m. Flint Bishop CEO, Qamer Ghafoor, described the acquisition as “a transformative step in our growth journey, enhancing our capabilities, broadening our geographic reach, and allowing us to deliver even greater value to our clients.”
Also last month, Lincoln-based Sills & Betteridge announced its merger with historic Sheffield law firm, Bell & Buxton Solicitors. Matthew Rodgers, partner at Bell & Buxton said the merger “represented a significant step for both firms as we respond to the changing legal landscape and the evolving needs of our clients.”
Ison Harrison, another Leeds firm, has been equally active. Last year, it acquired Cohen Cramer Solicitors, a move that significantly bolstered its regional presence and diversified its client portfolio.
The firm described the acquisition as “central to our strategy to expand service offerings and provide a broader range of expertise to clients across Yorkshire.”
Talent is driving the trend, too. Lawyers want challenge, variety and career growth. Bigger firms offer it all such as access to marquee clients, diverse work, and stability.
And technology? It’s a game-changer. AI-driven contract reviews, digital case management and sophisticated data systems, all of which require serious tools, also require serious investment. Smaller firms can’t always keep up alone.
The fragmented legal market is also attracting significant attention from private equity. One key area where PE could obviously make a difference is technology - helping firms not only cover the costs, but also ensure they are investing in the right systems strategically.
The infusion of private equity into Yorkshire law firms signifies a pivotal shift towards modernisation and growth within the legal industry. As firms leverage external investment to enhance their service offerings and expand their reach, they are positioning themselves to meet the evolving needs of clients in an increasingly competitive market.
Only last month, Sheffield-based Harper James Solicitors secured a £15m investment from LDC. The firm specialises in providing subscription-based legal services to SMEs across the UK, aiming to accelerate growth through both organic expansion and strategic acquisitions. This investment underscores the increasing appeal of alternative legal service models in the corporate sector.
Other firms in the region that have received private equity investment include IDR Law, a firm specialising exclusively in contentious probate, secured £3.25m from BGF. Last year, global investment firm Investcorp acquired Leeds-based Stowe Family Law, the UK’s largest specialist family law firm, from private equity firm Livingbridge.
Andy Poole is the legal sector partner at accountants and business advisers Armstrong Watson. For the last 21 years, Andy has specialised exclusively in the legal sector, providing merger and acquisition advice. He says the M&A market for the region’s legal sector has never been more active, and there is a ‘huge’ amount of private equity interest which is driving the volume of transactions and, ‘where appropriate’, valuations.
So why is PE so interested? Andy says: “It’s the fragmented market where they know they can benefit from the economies of scale that initial acquisitions and then bolt-ons can bring.
“It’s not just PE that is behind the increasing number of acquisitions. National firms and regional players are looking to consolidate too for the same reasons, including geographical coverage, access to people and client bases, and the ability to invest in and benefit from technology.”
Poole says that greater numbers of firms are looking to be acquired or receive investment so that they can both compete and succession plan. With the push from both ends of the market, it is little wonder so many deals are being completed.
He added: “The volume of activity currently shows no signs of slowing. The PE entrants are competing to acquire larger regional hub firms and, once invested in a hub firm, then to buy more local firms.
“At the top end of the market, this is pushing EBITDA multiples up to around eight times, although for smaller firms the multiples can still range from two to four if there is brand goodwill. Questions that will remain as we move forward from here will include how many firms of the right size are left for the PE and national firms to acquire? Also, what exit routes will PE take and when?”
The consolidation sweeping through Yorkshire’s legal sector shows no sign of slowing. With mergers, acquisitions and private equity investment reshaping the landscape, firms are seeking to balance tradition with transformation. For many, strategic deals are no longer a question of ambition, but of survival and sustainability in an increasingly competitive and data-driven profession.
Private equity’s growing appetite for law firm investment is accelerating the pace of change. Mid-tier firms see consolidation as a route to scale, capital and continuity. We’re seeing sustained momentum from both investors and national firms looking to strengthen their regional presence. The market remains incredibly active - and the smart players are moving early.
The short-term future is expected to bring a further wave of mergers, particularly among firms seeking to expand their client base or fill gaps in specialist expertise. Integration will be the real test - aligning systems, people and cultures while retaining the personal, client-focused service is always a difficult challenge. Mergers aren’t just about size; they’re about shaping a firm that’s resilient, relevant, and ready for the next decade.
Ultimately, the wave of consolidation across Yorkshire and the wider legal market reflects an industry in transition - one embracing capital investment and cross-sector collaboration. For clients, it promises greater depth and capability; for firms, it marks the beginning of a new era. The region’s legal community has weathered change before and, once again, it’s leading from the front.
::
We’re bringing the Rainmaker Awards back to the East Midlands after a hugely successful first year in 2024.
The Rainmaker Awards will bring together the East Midlands deals community to celebrate the best deals and teams from the past 12 months, as voted for by the corporate finance community themselves in a one firm, one vote system.
The casual dress code will swap the traditional tuxedos and long speeches for an evening that focuses on recognising and celebrating the best work from the year.
The night will provide an opportunity to network with the leading individuals and firms in the region.
::
Thank you for subscribing to Rainmakers.
We believe in good journalism that is worthy of your support. Please share this edition of Rainmakers so we can grow the message further and wider.
The insights and commentary we share with you are rooted in the trust we have built in the business community.
We’re also on LinkedIn - please join our Rainmakers community group for updates and offers and opportunities to comment.
If you have something you think we should look at, then either reply to this newsletter or email michael.taylor@thebusinessdesk.com.
Rainmakers is a reader-supported publication. To receive new posts and support our work, consider becoming a paid subscriber.