Legal Services

The US legal services industry includes about 170,000 law offices with combined annual revenue of more than $180 billion. Large firms include Skadden, Arps, Slate, Meagher & Flom; Latham & Watkins; Jones Day; White & Case; and Sidley Austin. The industry is highly fragmented: the 50 largest firms generate less than 15 percent of revenue.

COMPETITIVE LANDSCAPE

Demand depends on the volume of commercial and civil legal transactions and court and criminal cases. The profitability of individual firms depends on the partners' reputation and ability, and effective case management. Large firms have advantages in serving corporate customers with a wide range of needs. Small firms can compete successfully providing specialized expertise or superior outcomes and operating in a local market.

PRODUCTS, OPERATIONS & TECHNOLOGY

The industry's major service is the practice of law, which is providing legal services to individuals, businesses, government, and nonprofits. Services to businesses account for almost 50 percent of industry revenue; individuals, including estates, 40 percent; government, 4 percent; and nonprofits, 3 percent. Miscellaneous legal services provide an additional 3 percent.

Law firms operate as partnerships. Operations support the provision of legal advice and other services, such as document preparation and production, legal filings, and litigation. Most work falls under the general categories of transactional or litigation law. Transactional matters occur between at least two parties and usually require contract preparation or filings with government agencies. Litigation includes civil lawsuits and criminal cases. Civil ...