Mergers,is ag1 low fodmap mental health awareness, the rise of the Big Four and Brexit advice – law firms leaders have a lot to deal with in the coming year. Here, some of the industry’s biggest names outline their biggest hopes, fears and expectations to

Legal Week

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Gideon Moore, managing partner, Linklaters

"No prediction for 2019 can fail to mention Brexit – it’s a moving beast and it’s hard to tell how things will look next week, let alone in the next year. But there is no denying that this will dominate a lot of activity in 2019 as businesses throughout Europe try and navigate their way through this new landscape.

"It’s not the only significant global event that will occur, though. Although China and the US have said they will push forward with trade negotiations, investors will be watching closely to see if the two nations can resolve their differences.

Brexit is not the only significant global event that will occur

"Against this backdrop, our focus will be on servicing our clients and providing legal certainty in this changing world. Part of our strategy and key to providing excellent client service will be our ability to embrace new ideas, technologies and tools to help us challenge the present and shape the future. Spotting game-changing innovations, encouraging ideas as to how we sustain and grow our business and support incremental innovation will be a big part of this."

Simon Levine, global co-CEO, DLA Piper

"The market will be an unsettled one going forward, and I think it will be disrupted in two ways. Firstly, politically, because clearly the Brexit situation needs to play out to whatever conclusion it eventually reaches. That lack of a conclusion so far is making people feel uncertain. That may play into the political situation which will play into our clients and lawyers.

"The second thing is the growing influence of innovation and technology on the law. It’s a very exciting place for those law firms happy to invest in it – the world is changing and we need to evolve to meet these changes.

Something the legal industry needs to be thinking about more is the mental health of the people working within it

"As a firm, you can’t do anything about the political landscape – it’s beyond your control. But we’re all here to do business, and if you can focus on working collaboratively you can move beyond the political uncertainties. Something the legal industry also needs to be thinking about more is the mental health of the people working within it, and it needs to get serious about that if it wants to retain great people and attract talented graduates."

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Sally Davies, London senior partner, Mayer Brown

“I believe there is a real need for more optimism in the UK. We have all grown weary of Brexit and our politicians need to start pulling together, stop biting at each other’s heels and think about how ridiculous they look on the global stage. The world economy remains strong and if we are to capitalise on that in the UK we need to go into 2019 with a real sense of purpose about our standing in the world.

"Businesses will continue to tackle some of the big issues they have been facing in 2018; cyberattacks, regulatory pressure and over-leveraged financial positions will continue to dominate the landscape in 2019. However, I am confident that UK plc will prevail. We have access to the best talent in the world; our challenge is to provide that talent with the platform to flourish – a responsibility all leaders across the UK should embrace.

"The sector will continue to have an obsession with technology and AI – areas I see as evolutionary not revolutionary. I believe we will see a rise in the relationship management model being adopted by some of the banks, in terms of how law firms interact with their clients. If we see a downturn post-Brexit, firms will need to be very focused on the actions they need to take. Contingency planning should be top of everyone’s list in 2019.“

Jeremy Cohen, UK and Middle East CEO, Dentons

I think everyone is more cautious about 2019

"2018 has been a standout year. Banking and finance has been strong, real estate has been strong, transactions have been stronger than anticipated. But in all fairness, I think everyone’s more cautious about 2019. No one’s got a crystal ball, but that’s definitely the sentiment.

"There's a lot of volatility in the stockmarket at the moment, and there's a general sense that people are waiting to see what happens in 2019.

"We’ve had a lot of demand for regulatory advice and trade advice. After the summer holidays, the volume of enquiries has really intensified. It’s clearly Brexit-related, but not only Brexit. Regulatory has been a space that’s been growing for some time.

"With Brexit, you can imagine there will be a lot more work overall. For us, the volume of enquiries from non-EU clients is really increasing as Brexit reaches the final stages.

"For clients, I’d say the efficiency and value agenda is only intensifying. One of our core focuses will be responding to that, either through using technology and demonstrating to clients how that brings value in practice, smart resourcing, project management or anything else. It’s an agenda we’ll be very, very focused on."

Lee Ranson, co-CEO, Eversheds Sutherland

"The latter part of 2018 suggested that potentially difficult economic conditions may lie ahead. Despite the legal sector growing faster than the economy, transactional markets may face more challenging conditions if the UK becomes less attractive to outside investments.

The big four have made it clear they will be providing a high-tech offering to accelerate their growth plans

"Growth in legal technology continues to gather pace. The 'big four' have also made it clear they will be providing a high-tech offering to accelerate their growth plans. We expect to see a notable change in the pace of implementation of new client technology during the next 12 months, with our priority to be to meet our clients' changing needs.

"Staffing models will rapidly change over the next year, due to the huge drive towards a flexible and agile workforce that can be both bulked up and scaled back depending on external factors. As the post-millennial generation start their careers, law firms will need to evolve and adapt to incorporate their desire for greater mobility. There will also be an increased focus on diversity and inclusion within the sector.

"Past predictions regarding more mergers have not materialised, due primarily to the sector performing so well. If next year brings harder economic conditions, then there will inevitably be a drive to consolidate in order to reduce costs and create economies of scale. The industry will continue to become more fragmented between those law firms that are truly global and those that are niche."

Melissa Butler, London managing partner, White & Case

"The ongoing ‘war for talent’ and the need to recruit, retain and develop the best people – lawyers at all stages of their careers and across the professional support spectrum – remains one of the legal industry’s fiercest battlegrounds and most enduring themes, and something we expect will continue to dominate the discussion in 2019. At White & Case, it’s undoubtedly one of the keys to our ongoing success."

Ben Tidswell, chairman, Ashurst

"Market demands will continue to put pressure on firms to transform their business and operating models, focusing on maximising efficiency and using tech and other innovative means to meet client needs.

"Managing a broad and diverse risk exposure in light of the international reach of our clients will continue to be a key theme. A strong focus on cyber resilience and security will remain a critical area of focus for firms and their clients.

"If there is a hard Brexit and a recession ensues, that will obviously impact the UK market.

"The industry will also continue to keep an eye on the activities of alternative service providers.

"It is likely that we will see more domestic mergers in the UK and US in response to market pressure. The more interesting question is whether there will more international mergers between premium firms, which is quite possible.

The more interesting question is whether there will more international mergers between premium firms, which is quite possible

"The legal sector is seeing a number of new roles and new careers emerging in order to meet evolving client demand. Ensuring, therefore, that firms have the right mix of skills and expertise will remain a clear priority. The shift we have seen from business services functions supporting the network to being involved directly in the front-line delivery of legal services will continue.

"We will certainly see even more emphasis on building greater flexibility and ways of working into career structures. Mental health and wellbeing will continue to dominate agendas and we all need to redouble efforts to address diversity beyond gender."

Jeremy Hoyland, managing partner, Simmons & Simmons

"The word of the moment really is ‘uncertainty’. It’s so difficult to anticipate what’s going to happen next. I’m continuing to plan on the basis that we’re going to see a hard Brexit. We’re planning for the worst but hoping for the best. I think that’s the only approach you can take at the moment, as there are just so many risks to everything.

"Between now and the end of March, we’re going to see continued work on Brexit planning for many of our larger clients. We’ll also continue to win new Brexit mandates as organisations work through their processes and change advisers. That’s going to continue and maybe even ramp up in the first quarter.

I think we’ll see fewer transactions due to nervousness around the exchange rate, which may see a depressed Q1

"I think that we’ll see fewer transactions due to nervousness around the exchange rate, which may see a depressed Q1. If there is a Brexit deal announced in mid-February, I believe there’ll be a bounce in the exchange rates and positivity. If the worst happens, I think there will be a long cool-down period, lasting well into summer. It’s all hard to predict.

"We will continue to invest in our non-UK business, and we’ve been rebalancing our strategy for a while. Our Dublin office is an important development for us and remains at the top of my priority list.

"We’ll be increasing the amount of cross-border work we do and our investment in technology to improve service quality, speed and reliability. Lots of time and attention has gone into that, and those remain my priorities for the first part of the year."

David Higgins, London co-managing partner, Kirkland & Ellis

"From a private equity market perspective, I think it will be another strong year for the sector despite Brexit, as the fundamentals of doing deals are still strong. Lots of equity has been raised and is coming into the market, which means the necessary dry powder is there, as are the debt markets for larger deals. I think these fundamentals should be a driver of activity.

"You could see some UK sectors softening, such as retail, and we expect to see more opportunities in that area from a restructuring perspective, but hopefully we will not see a pan-market downturn like we saw in 2007-08. We’re expecting there to be more European sponsors looking at US deals as there are lots of targets in the US for large-cap deals, as well as seeing a lot more crossover European/US transactions.

"The priority for Kirkland is to maintain our focus on clients and the market. We will continue to grow the business and execute on our growth strategy."

Charles Martin, senior partner, Macfarlanes

"The outlook for markets and the economy looks pretty choppy, particularly in the UK as Brexit uncertainties continue. In any event we may be due for a cyclical downturn. However, it is by no means clear that law firms won’t be busy even in a marked downturn.

The big question mark is political change and uncertainty

"Companies need to transact strategically to respond to structural change and disruption in their markets. Private equity houses are flush with cash and will see a softening in prices as an opportunity to buy. Litigation has continued to be buoyant and may well become even more so. Downturns tend to produce investigations and restructuring, so we can expect more there too.

"The big question mark is political change and uncertainty, which could of course blow quite a chilling wind through everything."

David Patient, managing partner, Travers Smith

"We’re really in the hands of our politicians at the moment. Any certainty that they can bring to the table as to the deal we will exit the EU with, assuming we do, would be welcome news for most people. We’re getting very close to that backstop now and anything they can do to bring certainty will be good news. I’m quite optimistic that, assuming the politicians can come up with something, there will be plenty of opportunities as we move through the remainder of 2019.

"As the environment becomes more challenging, I expect to see an increase in disputes work. If we have a downturn, as was the case post-Lehman, people will no doubt be looking at whatever complex financial instruments have been flavour of the month. More positively, we have a number of practice areas that are more likely to be Brexit-proof, such as restructuring, pensions, derivatives and structured products and, of course, immigration, that I expect to see perform strongly.

One of the biggest concerns we all have is the threat to our business through cyber attacks

"Luckily I don't have too much trouble sleeping, but one of the biggest concerns we all have is the threat to our business through cyberattacks. We’ve seen an increase in traffic towards us in terms of 'phishing' and 'whaling', personal targeted attacks on partners, and attempts to get people to engage with scammers over email. It’s a dangerous world out there."

Tom Thesing, London managing partner, Sidley Austin

"My expectation is that with market uncertainty creating a challenging time, particularly in light of some difficult global activity, it will probably lead to a global economic slowdown in the second quarter. This will create challenges for some businesses and opportunities for others.

"At Sidley, we would expect to see more work in restructurings and more distressed investment opportunities. Other sectors that we expect will remain robust are life sciences and technology as both spaces have been very active, so I think we will continue to see that leading the way. We also expect to see increased work in financial services, where some of the distresses will play out differently."

Alex Chadwick, London managing partner, Baker McKenzie

"This year, we saw the big four make some bold moves as they continue to try and make inroads into the legal sector. Their success will largely depend on their ability to attract top-tier talent and we could see some interesting lateral hiring announcements over the next 12 months.

"While the accountancy firms seek to enter the legal market, I expect most law firms will also be examining their own business models and how they can offer their clients more holistic business and legal advice. We've seen this in action in our own London tax practice, which combines the expertise of tax advisers, accountants, economists and lawyers to offer clients the full breadth of international tax planning advice.

Legal tech startups will continue to play an increasingly important role

"We also saw some huge advances in legal tech last year, as the legal sector and its clients continued to realise the benefits of investment in technology and innovation. This is only set to increase in 2019 as the battle for legal tech wages on and the technology itself becomes increasingly sophisticated. Startups will continue to play an increasingly important role here.

"Lastly, I think further consolidation in the legal sector is inevitable but I think it will be mostly concentrated in the US where most law firms are trying to get a stronger foothold."

For more, see

Cutting through the hype: predictions for innovation in law in 2019

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