All About Mid Size Law Firms: The Definitive Guide
Characteristics of a Mid Size Law Firm
When comparing law firms, whether you are looking for legal services or possibly a new place of employment, size is often an important factor to consider. There are no hard and fast rules around what constitutes a large law firm vs. a mid size law firm, but in general anything over 150 lawyers is considered large. That difference of size certainly isn’t a coincidence, and when it comes to making a choice between firms for employment, the reason for that distinction becomes apparent. Mid size law firms have a bright future and are quite desirable to work for as they are known for offering the best benefit of both worlds.
Mid size law firms are described as firms with between 50-150 lawyers on staff. Anything below that is deemed small, and anything above it falls under the large category. Mid size law firm profit per partner is an average of $790,000, with the top performers clocking in at $4 million. Each statistic is telling as to the current state of the mid size law firm industry.
According to the ALM Global 200, there are currently 725 law firms in the US, with 48 percent of them employing at least 100 lawyers, and sixteen percent with more than 350. Law firms with less than 10 attorneys—of which a whopping 62.3 percent of US law firms fall—don’t have sufficient access to capital , and do not have the financial ability to focus on attracting the best and the brightest. These firms of fewer attorneys are often family run businesses, which can result in a culture that is not suitable for a good fit for most lawyers. In a time where teamwork is becoming more and more critical in all industries, few solo practitioners are going to offer opportunities for a collaborative atmosphere, and rather favor a kind of ‘lone wolf’ philosophy.
Something even a little higher, or exactly in the middle, makes a whole lot of sense. A mid size firm has most of the inherent benefits of a large firm: probably enough capital to ensure stability in market fluctuations, depth and bench strength in a rich variety of practice areas, and a bevy of connected and influential alumni. But they also have a much more stable and welcoming culture, and are small enough to maintain that all-important work-life balance. The ethos already in place requires a philosophy that gives a chance to everyone to partake of the spoils, and leaves a lot of room for horizontal movement within the firm. The opportunities are bountiful, and you have the talent to rise to the occasion.
Pros of Mid Size Law Firms
Advantage: Personal service is always a big plus for mid size law firms, but so is the cost factor. The big the law firm the more you pay and the more often you pay for services. A big advantage that mid size law firms offer is specialized skill sets without the exorbitant fees.
Mid size firms have more overhead than the tiniest of law firms but they also have the infrastructure in place to establish a comfortable living environment for their lawyers. Mid size law firm lawyers have the ability to stay close enough to their clients to understand their needs without having to bill so much that it breaks the clients budget.
Mid size law firms are able to offer highly specialized, legal services because they can afford to pay highly specialized lawyers. They don’t charge an arm a leg and a couple ribs to produce results for their clients.
The Drawbacks of Mid Size Law Firms
The market for mid size law firms comes with its own set of challenges. One of the most significant of these is competition from larger law firms that have more robust resources and broader recognition in their field. For mid sized firms, the competition is doubly hard, as they must often vie for talent on both sides. Not only do they compete with firms in their own arena, but they are also often poached by larger firms looking to attract quality talent with personal relationships.
This ability to recruit top talent is an increasing problem for mid sized law firms, as younger associates become more discerning in their career choices. Many perceive mid sized firms as being less innovative or dynamic than their larger counterparts. Additionally, as large firms begin to emphasize work life balance and to attract top talent who do not want to make the traditional sacrifices associated with the field, mid sized firms may find it difficult to offer compensation packages attractive to top talent.
While there is no doubt that some firms will always be bigger, one of the problems is that smaller firms often do not know how best to market themselves. With fewer dollars to devote to marketing, it can be difficult for these smaller firms to find the best method to optimize their marketing campaigns or choose between strategies for the best return on investment. In many cases, mid size firms may focus on one method of marketing, rather than experimenting with different methods to find their preferred choice.
How to Select the Right Mid Size Law Firm
When considering whether a mid size law firm is the right fit for your organization’s legal needs, clients should carefully examine several key factors. Most importantly, legal expertise remains paramount; clients must ensure that the firm has the necessary experience and skills relevant to their practice area. When choosing a mid size law firm, organization’s should also research the firm’s reputation within the industry . This includes the perception of the firm outside of the office and the level of respect they command in the legal community. Client testimonials are another important consideration; speaking to prior and current clients can provide a wealth of information on the firm’s quality of service. Although a firm’s location is factored into the equation, today’s technology and communication enable firms to effectively service clients across a wide geographical area, diminishing any advantage geographic proximity may have once held.
Growing and Scaling Mid Size Law Firms
The competition in the legal industry can be fierce, but mid size law firms can still grow and expand their practice by adopting a number of effective strategies. These include investing in new technologies, building strong client relationships, and exploring niche markets.
Investing in new technologies helps mid size law firms keep pace with larger competitors and serve their clientele more effectively. It allows them to automate manual processes, improve communication, and provide better service faster and more reliably. By leveraging technology effectively, mid size law firms can improve their operational efficiency and enable their team to focus on providing high quality legal services.
Building strong client relationships is another important component of growth for mid size law firms. Having a dedicated marketing team both engages existing clients and attracts new ones, while paving the way for additional business development opportunities. By focusing on building strong and lasting client relationships, mid size law firms can foster a more loyal customer base that is consistently willing to recommend the firm to peers and others in their network. A number of studies have shown that even an existing client that refers two people can bring in more business than a new client can on their own.
Finally, mid size law firms can grow and expand their practice by exploring niche markets. Instead of trying to compete with larger firms on the same client base, focus on ways in which your firm can provide unique insight or expertise within a specific industry or sector. A top personal injury firm in Connecticut has received national coverage and recognition in recent years by focusing exclusively on representing victims of preventable injuries. In the process, its attorneys have been featured in industry and media outlets, and have received multiple awards.
The Mid Size Law Firm of Tomorrow
The future of a mid size law firm will be largely defined by how well it adapts to the rapidly changing technological and marketplace landscape. One of the most promising areas for innovation and expansion will likely be in the realm of digital transformation. A mid size firm that actively embraces new technologies and incorporates them into its operations will be well-positioned to compete with larger firms and smaller boutiques that are slower to adapt. For instance, a mid size firm could leverage artificial intelligence to optimize document review and contract analysis, freeing up attorneys to focus on more value-added services.
Another impending challenge is the rising demand for alternative fee arrangements (AFAs). Clients are increasingly opting for fixed fees and incentive-based payment models, which may potentially affect a mid size firm’s bottom line if it has not incorporated AFAs in its pricing strategies. However, many mid size firms are finding that establishing structures for AFAs can lead to new revenue opportunities. By adopting AFAs, a mid size firm can appear more attractive to clients and gain a competitive edge in the marketplace.
When it comes to legal practice , the shifting of client preferences poses both challenges and opportunities. In the past, larger law firms had the advantage of in-house technology and legal research departments to service complex demands of corporate clients. However, a mid size law firm can now access these resources through legal platform-as-a-service (PaaS), which allows lawyers to provide clients with bespoke services that were once only available through a large-scale practice.
Mid size law firms are also likely to see changing demographics in their client base, pushing them to become more inclusive and diverse. Lawyers are now more likely to be from diverse ethnic and social backgrounds than ever before, which will force firms to adapt their communication styles and use a wider range of engagement methods to suit their increasingly diverse clientele.
In conclusion, the future of mid size law firms will be driven by the pressure to embrace digital transformation and adapt to a constantly evolving marketplace. By remaining relevant, these firms have the opportunity to unlock new revenue streams and compete with firms of all sizes.