Over 90% of the Top 20 commercial law firms and two out of three Dublin-based firms have reported an increase in their revenue in the past twelve months.

However, the annual Law Survey from Evelyn Partners, based on Red C Research quizzing of managing partners and senior partners, finds that nine out of ten respondents believe the current economic environment will have a negative impact on the sector through 2023.

Overall, revenue has increased for the majority of firms (55%) this year.

Paul Wyse, head of Professional Practices at Evelyn Partners Ireland, commented: “Most Top 20 firms continued their growth trajectory this year but are reporting a more competitive marketplace, with more international firms now established in Ireland with aspirations to grow their presence here even further.”

John O’Callaghan, Evelyn’s managing partner, added: “We’re seeing huge changes in the legal sector in Ireland with the internationalisation of the market, particularly as London is making a very attractive case for young solicitors to move across the water.”

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Most Top 20 and Dublin-based firms reported that the entrance of UK and international legal firms has presented challenges for recruiting and retaining partners and staff.

The report states: “Increasing salary and operating costs are putting pressures on margins for law firms across the country. Outside Dublin, 40% of legal firms have reported a decline in profitability over the past 12 months.”

One in three firms surveyed had been approached or made an approach with a view to a merger, and most of them were approaches made by a UK or international law firm.

The survey finds that seven out of ten Top 20 firms have made more than five lateral hires in the last twelve months. Extrapolating the survey responses, the Evelyn survey surmises that over 150 lateral hires were made by the Top 20 firms in the past year.

Almost all Top 20 firms (93%) surveyed in the report view recruitment and staff retention as a key concern.

Efforts to maintain a culture of staff working extra hours as part of their normal career progression are increasingly being resisted by younger staff, according to survey responses.

Photo: Paul Wyse (left) and John O'Callaghan (right) with Dr Brian Doherty, CEO of the Legal Services Regulatory Authority