Faced with inflation, a looming recession and increased global regulation, law firms are looking at a lot of uncertainty. Even those still enjoying high demand for their services and basking in the increased profits and revenue they’ve experienced in the past year, know that change is likely on its way. So they are getting ready, taking steps they hope will insulate them from whatever is to come.
There are many ways to prepare for the big changes ahead but perhaps the most dramatic step a law firm has recently made took place last week in Australia. There, the fast-growing firm Wotten + Kearney, which specializes in insurance law, announced it is selling a 30% stake in the firm to a private equity company.
The law firm, which has 57 partners and more than 300 lawyers, wants to raise money to expand geographically—both in Australia and in Asia. It also wants to attract top talent, capture new market opportunities and invest in legal tech. It could have raised money by listing on a stock exchange—a move taken by other firms, both in the U.K. and in Australia. Or it could have pursued traditional financing. But instead, Wotten + Kearney did what