Magic circle faces growing competition

Posted By: James

Monday 10th November 2014

Angela Jamieson reports on the threat to the magic circle’s dominance in London from the likes of Baker & McKenzie, which recently spent £3m on a 65th anniversary party for its 800 partners. The top five - Clifford Chance, Linklaters, Freshfields Bruckhaus Deringer, Allen & Overy, and Slaughter and May – have seen profits rise after slashing costs during the financial crisis. The Law Society claims the legal sector now accounts for 1.5% of GDP. Ms Jamieson outlines how blue-chip firms have transformed, becoming more disciplined and focused and taking opportunities to expand overseas. Malcolm Sweeting, managing partner at Clifford Chance, says there are three key competitive threats to the magic circle: globally constructed firms such as DLA Piper and Baker & McKenzie, who try to offer all services to companies around the world, outsourced legal companies such as Axiom and Riverview Law, and accountancy firms which are also beginning to move into the legal profession.

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