Commercial law firms in Germany are once again reporting peak sales: they were able to generate 8.3 billion euros in 2021 through advice and litigation, i.e. 6 percent more than in the first Corona year.
It was not just the general economic upswing that ensured this.
Commercial law firms have proven to be extremely robust and adaptable during crises, as shown by similar developments in Great Britain and the USA.
How much longer can this party go on?
The pyramid-like age structure of many law firms provides a possible answer.
Sales growth is mainly generated through the acquisition of career changers (laterals) or with the help of new employees (associates).
The latter resource is finite.
The number of law graduates has been falling for years.
In the coming years, this fact will have a major impact on the planning of all market participants – including companies and the judiciary.
Prudent law firm managers should therefore invest in their existing staff now and retain every available up-and-coming talent.
Otherwise they will accept a loss in sales with their eyes wide open.