Law firms had strong financial performance in first half of 2024, survey says
Another survey shows an 11.4% year-over-year increase in law firm revenue for the first half of 2024, a percentage that is more than double the 4.4% growth for the same period last year. (Image from Shutterstock)
Another survey shows an 11.4% year-over-year increase in law firm revenue for the first half of 2024, a percentage that is more than double the 4.4% growth for the same period last year.
Firms “experienced very strong performance, partly benefiting from a relatively easy comparison against a soft first half of 2023,” according to a media summary by Wells Fargo’s Legal Specialty Group.
The revenue boost led to one of “the best first halves we’ve surveyed, second only to 2021,” the summary said.
The findings echo survey results released last week by the Citi Global Wealth at Work law firm group. That survey also found an 11.4% increase in revenue for the first six months of 2024.
According to the Wells Fargo report, rate growth is the primary reason for the increase in revenues. Average standard rates increased 8.8%, compared to the first six months of 2023.
The rate growth was highest—at 10%—for firms that are among the nation’s top 50 for gross revenues. Those firms also had the highest revenue growth, with a 13.8% increase.
Wells Fargo’s results are based on a survey of more than 130 firms, including 66 firms that are in the Am Law 100, a listing of the nation’s 100 top-grossing firms. Forty-two Am Law Second Hundred firms participated. Results are based on comparisons to the same period last year.
Other findings include:
• Capital markets and merger activity recovered in the first half of 2024. At the same time, practices spurring growth in 2023 “continued apace.” Those practices are litigation, restructuring, regulatory/antitrust and investment management.
• Demand increased 3.1%, and productivity increased 1.5% to 1,576 hours per lawyer.
• Expenses increased 7%, with increases in overhead, at 7.3%, slightly outpacing increases in lawyer costs, which were up 6.7%.
