2023 Citi Hildebrandt Client Advisory

Law Firm Advisory | Legal Industry Outlook | Citi Law Firm Group

SUMMARY

Following the unusually strong performance seen in 2021, we entered 2022 expecting comparatively modest growth. 2022 became an increasingly challenging year for the law firm industry from one quarter to the next as a result of a macro environment marked by the Russia-Ukraine war, rolling lockdowns in China, an energy crisis, supply chain issues, rising interest rates, inflation and equity and bond market volatility.


We expect that many firms will see a decline in profitability in 2022, compared to the extraordinary results of 2021. However, looking at average annual profitability growth since 2019, we believe that the law firm industry has performed very well.

Given the high likelihood of a recession in 2023, there are challenges ahead, but clients need lawyers in good times and bad. While it is hard to predict what will happen in 2023, we expect that firms with a tilt toward down cycle practices will fare better than those who are heavily dependent on M&A and capital markets practices.

In a challenging demand environment, firms will likely be dealing with excess capacity. While the level of excess capacity may be painful in the near term, experience has shown that this will correct itself when the market inevitably rebounds. And while the talent war seen in 2021 and in the early part of 2022 has settled, we expect to see lateral movement of top talent as firms look for growth opportunities from other firms.

We also expect that while the hybrid work model occupied much of the conversation through 2022, we will see the emergence of many different versions of a flexible work model as firms grapple with what is best for their people, their clients and their businesses.

Given the inflationary pressures seen in 2022, law firms now operate under a higher cost structure, making it imperative that they continue to focus on both expense- and revenue-related operational efficiencies

Despite all these challenges facing law firms in the year ahead, we believe that, as we have seen in earlier challenging periods, the law firm industry will once again prove how resilient it is.

WE OFFER

Law firm advisory services

We provide market-leading intelligence to help you understand the legal industry’s competitive landscape and inform your strategic decisions.

Contact us

Contact us

To help put you in touch with the right Private Bank team, please answer the following questions.

Are you an existing Private Bank client?

Are you an existing client?

Please fill out the form, so we can contact you.

I consent to the use of my personal information (name, telephone number and email address) by Citi Private Bank for the purpose of contacting me to send me marketing information about Citi Private Bank's wealth management products and services. I understand that my information will be used in accordance with the relevant  privacy statement for my location. I also understand I can withdraw this consent to be contacted by phone or email at any time by emailing donotspam@citi.com

Please consent to the terms and conditions to continue

What profile best describes you?

I would like to discuss an investment (USD) of

I would like to discuss an investment (USD) of

I would like to discuss an investment (USD) of

Thank you for your interest in Citi Private Bank.

Our services have a minimum investment level of $5 million.

Based on the information provided, we believe that a Citigold relationship may be most appropriate for your needs.

To find out more: Visit Citigold

Thank you for your interest in Citi Private Bank.

Our services have a minimum investment level of $5 million.

Based on the information provided, we believe that a Citigold relationship may be most appropriate for your needs.

To find out more: Visit Citigold Private Client

I am interested in

Aircraft Finance
Art Advisory & Finance
Banking
Custody
Family office
Investments
inerested_in
Lending
Real Estate
Trust

Please select at least one.

I am interested in

Aircraft Finance
Art Advisory & Finance
Banking
Custody
Family office
Investments
Law Firm
Lending
Real Estate
Trust

Please select at least one.

Job title & Company

Job title & Company

Location

Location

How would you like us to contact you?

How would you like us to contact you?

Please enter your contact details

Please enter your contact details

How did you hear about us?

How can we help you?

I consent to the use of my personal information (name, telephone number and email address) by Citi Private Bank for the purpose of contacting me to send me marketing information about Citi Private Bank's wealth management products and services. I understand that my information will be used in accordance with the relevant privacy statement for my location. I also understand I can withdraw this consent to be contacted by phone or email at any time by emailing donotspam@citi.com

Please consent to the terms and conditions to continue

How did you hear about us?

How can we help you?

I consent to the use of my personal information (name, telephone number and email address) by Citi Private Bank for the purpose of contacting me to send me marketing information about Citi Private Bank's wealth management products and services. I understand that my information will be used in accordance with the relevant privacy statement for my location. I also understand I can withdraw this consent to be contacted by phone or email at any time by emailing donotspam@citi.com

Please consent to the terms and conditions to continue

Thank you for your interest in Citi Private Bank. A member of our team will be in touch with you shortly.