The introduction of alternative business structures (ABSs) will greatly speed up merger activity among law firms, a snapshot survey of leading figures in the legal profession has predicted.

However, two-thirds of those questioned believe that solicitors currently lack the management skills to take advantage of the reforms, which are due to begin in 2011 or 2012.

The survey Views from the Top, conducted by professional communications consultancy Spada, found that three-quarters of those polled envisaged greater consolidation, with almost half saying their own firm would benefit from a merger.

A similar figure (43%) also thought external investment would help, but there was less interest in flotation. Almost half said their firms were likely to become legal disciplinary practices next year.

The Spada white paper accompanying the survey revealed that volume firm MTA Solicitors, which is based in Kent and Manchester, is keen to take on external investment to develop a business model that gets it closer to consumers and cuts out referral fees.

MTA chief executive David Green said: ‘Private equity investors for us would be for no other reason than expansion. [It] would help us bring in the right people to take us into places where we currently are not, and [increase] marketing.’

Top law firm consultant Alan Hodgart of H4 Partners said: ‘It could be good for some firms to work with an outside shareholder. It would help them clean themselves up before going to AIM and multiple shareholders. Initially, people were talking about private equity, but now people are saying "why not put 25% on AIM?".’

Spada managing director Gavin Ingham Brooke said: ‘In some respects the future has already arrived – Halifax, for instance, provides volume legal services... What is more difficult to predict are the longer-term, fundamental, aggregating forces of the market.