Platform Law Firms: The New Challengers Disrupting the Legal Market

The legal services market in England and Wales has seen significant changes in recent years, with consulting firms making a push into the industry to compete with traditional legal firms. However, a new report has highlighted the rise of platform law firms, which are adopting consulting models to accelerate their growth and headcount.

According to The Platform Firms Report 2024 by Codex Edge, platform law firms are leveraging consultancy-inspired models to attract staff and increase their revenues at a faster rate than traditional legal firms. This model involves billing clients for work and providing administrative support, eliminating hierarchy and billing targets to streamline operations.

The report found that platform law firms such as Setfords, Spencer West, and gunnercooke have been able to significantly increase their headcount by attracting lawyers who might have otherwise looked elsewhere. Setfords, for example, was able to grow its team by more than 80 experts, while Spencer West and gunnercooke expanded by 50 professionals.

The CEO of Setfords, Guy Setford, commented on the findings, stating, “It’s really positive to see the continued growth of the platform law model. We’ve always been dedicated to driving innovation in legal service delivery, and being named the top hiring firm in the UK is truly a momentous occasion for us.”

In addition to increasing their headcount, platform law firms have also seen significant revenue growth. Bexley Beaumont, for example, enjoyed a compound annual growth rate (CAGR) of 50%, while Spencer West saw a CAGR of 38%. Other firms such as Excello and Setfords also experienced revenue growth rates of 20% and above.

The CEO of Bexley Beaumont, Karen Bexley, expressed delight at the firm’s performance, stating, “We are delighted that Bexley Beaumont is leading the way for compound annual growth, especially given our selective and strategic recruitment process. The fact we rank so highly is a testament to our different approach and what makes Bexley Beaumont attractive to lawyers.”

Overall, the rise of platform law firms in response to the entry of consulting firms into the legal market has brought about a new era of innovation and growth in the industry, with these firms proving to be a competitive force in the legal services market.