Seventy percent of mid-sized law firms have been approached by private investors in the past year, according to research published today. The report, by accountants MHA in conjunction with the Law Society, is based on a survey of the leaders of over 60 mid-sized law firms in England and Wales. 

According to the report, 2025 saw a shift in the legal and wider professional services landscape with PE investors taking more interest than ever before. Almost 70% of firms said they had been in contact with PE investors or another PE-backed firm. Nearly a quarter of firms also said they were actively considering a public share offering. 

The survey findings highlight a noteworthy shift in corporate activity, with a clear move away from mergers towards acquisitions that could potentially be funded by PE investment. This change is evident in the responses, with only 3% of firms planning to engage in merger activity in the next 12 months. However, 17% are planning to make acquisitions in the next year.

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The waning attraction of the partnership model is reflected by the fact that only 14% of those surveyed said that within the firm there was a strong interest from associates in becoming partners while 43% indicated that partnership was perceived to be less desirable than in previous years. The survey found that increased costs and changes in regulations are creating uncertainty and explaining why fewer people now aspire to partnership.

Robert Blech, head of professional practices at MHA, said: 'Private equity investment is expected to continue and indeed gather pace in the coming years, particularly because the legal sector remains highly fragmented and therefore buy and build strategies are attractive. While such moves offer the potential for growth and competitive advantage, they also bring significant challenges—including the risk of losing control and shifts in company culture. Combined with rising costs and a regulatory landscape in flux, these factors create real uncertainty for the sector, fundamentally reshaping the desire to progress to partnership and demanding careful navigation to ensure long-term success.'