How does consolidation affect firms and tech?

Plus: Lawyers suffering from sleeplessness.

Raise The Bar

Sep 25, 2024 • 4 min read

Each week it seems like more big name firms are tying the knot. The legal tech world has seen its own consolidation, and many major tech tools are in the hands of the same few owners. What does it mean for solo practices and small firms? Plus: Morgan & Morgan sues another firm for allegedly stealing its Google clout. Welcome to this edition of Raise the Bar.

In today's newsletter:

Potential hidden costs of mega-firms
Sleepless in the legal profession
Can firms charge remote employee penalties?
Swag your clients can actually use

What's next for legal practice management tech?

Lawyer and journalist Bob Ambrogi reviews the history of law practice management software through the consolidation of ownership of the major software by six groups. The next phase for these companies, he predicts, includes specialization into target practice areas and marketing to more international law firms. To expand their reach, practice management software companies will continue to improve core offerings, while developing generative AI capabilities, adjacent services like litigation support and financial services.

See the whole series on LawSites.

Why law firm mergers may be costly for clients

As the trend of large law firm mergers continues, Rob Chestnut of Bloomberg Law asks companies, “[A]re you really saving money by consolidating work with a few big firms? In my experience, big firms aren’t terribly efficient, and their rates are often higher to begin with.” While one-stop-shopping creates efficiency, Chestnut argues that companies are better served by working with outside attorneys who are trusted advisors, rather than for lawyers from a list of “preferred provider” firms whose rates may be a bit lower. Plus, lower fees might be negated by other costs from a mega-firm.

Read more.

Survey: Sleep disruption and anxiety affect lawyers

The ABA Journal reports on a new survey from Bloomberg Law detailing the top mental and physical challenges for legal professionals in 2024. Topping the list are disrupted sleep (56% of respondents) and anxiety (55%). The survey of 1,400 legal professionals — 98% of whom are lawyers — found that the average respondent rated mental health as 6.5 on a 10-point scale. “Younger attorneys reported the least well-being, with a 5.6 average for those ages 25 to 34,” the article noted. “The numbers got better with increasing age.”

How does your health compare? Read the story.

🎧 The marketing funnel for lawyers

The idea of a marketing funnel is common in many business-building contexts but may be unfamiliar to lawyers. On the Counsel Cast podcast, Mark Stern, CEO of Custom Box Agency, shares how to market to potential clients in the middle of the funnel, where they’ve already expressed some interest in the firm’s services. Stern’s company creates boxed mailers that help clients engage with their customers. He recommends using interactive elements in client mailers to guide them through what they can expect from a firm, like a chart of the trademark registration process designed as a game board.

“There's a lot of people out there who have services to help you trademark your products and services,” Stern says. “When you see this physical experience that you're going to be getting that complements the journey that you're about to go on, it has just a different perceived value than for a lot of what other people are putting out there.

Listen in to the Counsel Cast podcast.

Thank you for reading Raise The Bar.

Every Thursday, you'll hear from our team about the most pressing issues facing legal practices today. We'll also try to include some quick-hit reads that touch on interesting cases and precedents being set worldwide.

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Written by Suzi Morales. Edited by Katie Parsons