Source: Adam Smith Esq.
A recent analysis of AmLaw 100 data reveals a striking trend in the legal industry: big law firms are capturing an increasingly larger share of the market. The announcement of Herbert Smith Freehills’s (HSF) merger with Kramer Levin brings this trend into sharp focus.
The Numbers Tell the Story
The concentration of revenue among billion-dollar-plus firms has grown dramatically over two decades:
- 2003: 25.3% of AmLaw 100 revenue
- 2013: 58.0% of AmLaw 100 revenue
- 2023: 74.5% of AmLaw 100 revenue
In 2023, 50 firms reported revenue over $1 billion, with Kirkland leading at $6.514 billion. This marks a significant increase from 2013, when only 20 firms crossed the billion-dollar threshold. Even adjusting for inflation, the concentration is clear – the equivalent of $1 billion today would have been $757 million in 2013, a mark only 33 firms reached then.
HSF-Kramer Levin: A Strategic Move
The HSF-Kramer Levin merger appears carefully planned rather than reactive. HSF CEO Justin D’Agostino describes it as “the first real transatlantic and transpacific merger,” with the firm deliberately seeking a strong US presence and minimal client overlap to avoid conflicts.
Despite Kramer Levin’s relatively modest performance (2.9% revenue growth over 2018-2023 compared to HSF’s 26.8%), the merger represents a strategic move in an increasingly concentrated legal market where scale matters more than ever.
This consolidation trend suggests a fundamental shift in the legal industry’s structure, with major implications for mid-sized firms’ competitive positions and client choices in the years ahead.
Read more: Adam Smith Esq.
