Large law firms are increasingly looking to poach teams from their rivals as they can quickly turn a profit, according to new research.

The annual Smith & Williamson professional practices survey found that 45% of the 102 law firms which took part – most in the top 100 – had hired a team in the past year, while 84% would consider such a move. Both figures were up on the previous year.

Real estate was the practice area most likely to have changed hands, closely followed by litigation and company/commercial. Almost six in ten of firms that acquired a team reported it was profitable within the first year of trading.

Giles Murphy, head of assurance and business services at Smith & Williamson, said: ‘With a buoyant real estate market, this is perhaps not surprising, although one would assume that in the current market the period between acquisition and profitability will be a lot longer. This position would be further complicated if the acquiring firm offered the incoming team guarantees over profit shares.’

Approximately one in five of those polled were actively seeking an acquisition, with all but the smallest firms keen to acquire new practice areas. Murphy said: ‘Niche firms are likely to be focusing on their core area, whereas it is the larger firms who may see greater benefit from new service lines and benefit from the opportunity to cross sell into a new client base.’