Law firms cannot escape the concentration which is so rife in
other sectors. Already this year the banking sector has produced
the world's largest merger, Citicorp and Travelers. In the
accounting field Pricewaterhouse Coopers has just completed its
landmark merger and the association between the London and
Frankfurt stock exchanges is the latest step towards European
consolidation of the financial markets.
The partnership model, which is so at odds with modern business
structures, has held back law firm mergers. Instead most UK firms
have chosen to grow organically both in London and abroad. This has
not affected the ambitions of London's top tier firms, but has
slowed the progress towards genuine international law firms.
However, that strength of ambition will eventually drive London's
international firms into a period of consolidation.
Mark Welling, head of capital markets at Allen & Overy, sums
up the kind of goals that will fuel change within...