In the dynamic landscape of legal services, law firms are gearing up for a spree of mergers and acquisitions as they navigate a sluggish demand growth environment. Gretta Rusanow, managing director and head of advisory services at Citi’s Law Firm Group, predicts a continued trend of consolidation within the industry to combat increasing operational costs and modest demand increments.

Rusanow, in her insights shared with Bloomberg Law, emphasizes the strategic necessity for law firms to engage in mergers or pursue aggressive lateral hiring to secure a competitive edge. “When you’re operating in a modest demand growth environment overall—meanwhile, the cost of running these very sophisticated businesses is increasing—we will see continued consolidation occurring,” she explains.

The legal sector has seen less than 1% growth in demand year-over-year, pushing firms to adopt aggressive strategies to outperform rivals and capture greater market share. According to Rusanow, acquiring growth through mergers is a pivotal strategy for law firms aiming to thrive amidst these challenging market conditions.

2025 witnessed a significant number of high-profile law firm mergers, setting a precedent that 2026 is likely to follow. This trend reflects a broader movement within professional services where firms are increasingly turning to mergers and acquisitions as viable pathways to ensure sustainability and growth.

As law firms prepare to navigate another year of competitive pressures, the focus remains sharply on strategic mergers that promise not only growth but also an enhanced ability to serve clients more effectively in a global market. The continuation of this merger mania is not just a prediction but a necessary evolution in the legal industry's landscape.