Mid-market firms review strategy ahead of alternative business structures

More than a third of mid-market law firms have changed their business strategies in the last year in response to the Legal Services Act.

A survey of 101 firms, commissioned by legal information provider Lexis Nexis, also found that a further quarter will alter their structure in the next six months as solicitors scramble to prepare themselves for the arrival of alternative business structures.

Almost half of firms - 47 per cent - have been increasing their investment in non-lawyer business specialists and external consultants in the last 12 months, with more planning to follow suit in the next year.

But the vast majority of firms are still not convinced by social media, with just 2% of respondents seeing the likes of Twitter and LinkedIn as beneficial in attracting private and commercial clients.

Nick Jervis, of legal consultant Samson, warned that firms are running out of time to react to a rapidly changing market.

‘If firms aren’t spending regular time, effort and energy on business development then they are missing significant opportunities,’ he said.

‘Whilst it used to be the case that you could keep on doing what you have always done and expect the same results, now you can expect diminishing results and, more likely than not, to be out of business.’

Almost three in every 10 respondents were contemplating (or at least had yet to rule out) the possibility of external investment under the LSA.

And a fifth of survey participants anticipate a merger or major restructuring of their firm once the ABS offers the potential to do so.