At last week’s Business Development Forum, Barbara Koenen-Geerdink, Partner and Co-Founder of Beyond Billable Hours, and Andrew Hutchinson, self-described “growth geek” and legal sector strategist, explored what growth really means for law firms today and why the conversation is more complex than headline merger announcements suggest.

The Consolidation Wave

Koenen opened by framing growth as a multi-dimensional issue, with mergers currently dominating the landscape. Hutchinson pointed to a significant rise in international mergers, particularly those designed to strengthen US market presence. Many large international firms, he noted, are seeking to cement their US footprint to create genuinely global platforms.

Koenen observed similar activity across EMEA, with US firms expanding into the UK and continental Europe. While client demand for cross-border support is undoubtedly a driver, both speakers questioned whether consolidation is equally fuelled by financial ambition and competitive positioning.

Growth through merger is rarely straightforward. Cultural alignment, governance integration, and strategic clarity often determine success more than scale alone. The example of high-profile mergers unravelling after years of integration underscores the fragility of poorly aligned unions.

Lateral Hiring and the Cultural Question

Beyond mergers, the discussion turned to lateral hiring as a growth lever. While more organic in nature, lateral recruitment carries its own risks. Hutchinson cited statistics suggesting a substantial proportion of laterals leave within a few years, raising questions about due diligence and integration.

Koenen emphasised culture as the often-overlooked variable. Values cannot remain aspirational statements “written on the wall”; they must be clearly articulated and consistently understood. Misalignment in values, whether in personal relationships or professional partnerships, inevitably leads to friction.

The panel underscored that successful growth requires intentionality. Firms must be explicit about their “North Star,” their purpose, ambition, and identity, before pursuing expansion strategies. Without this clarity, growth initiatives risk destabilising rather than strengthening the organisation.

Private Equity and Structural Shifts

The conversation then shifted to private equity investment in law firms. Koenen shared firsthand experience of working within a PE-backed firm, describing the immediate shift towards a results-driven, sales-led model focused on return on investment.

While PE can inject capital and accelerate growth, it fundamentally alters internal dynamics. Hutchinson referenced UK examples where firms later reversed course, buying back control after challenging periods under investor ownership. The underlying tension lies in balancing financial imperatives with professional values and client service expectations.

The central question remains whether private equity ultimately enhances or dilutes client value. Both speakers stressed that any structural decision must be informed by client need rather than internal ambition alone.

Alternative Models and the Next Generation

Growth is not limited to consolidation. Hutchinson highlighted the rise of alternative legal service models and boutique firms founded by partners seeking autonomy and flexibility. Technology increasingly enables smaller, agile firms to compete with established players.

This shift also reflects generational change. Many younger lawyers prioritise professional fulfilment and quality of life over traditional partnership tracks. Alternative structures can allow lawyers to focus on practising law, rather than managing businesses.

Koenen and Hutchinson agreed that passion and purpose underpin excellent client service. Models that allow lawyers to operate in alignment with their strengths may ultimately prove more sustainable.

AI, Practice Areas, and the Future of Work

The session concluded with a discussion on artificial intelligence and its impact on growth. While some predict widespread displacement of junior roles, Hutchinson argued that AI is more likely to reallocate effort than eliminate value.

Using the example of contract review, he explained how AI can process large volumes of documents, enabling lawyers to focus more deeply on strategic analysis. Rather than reducing value, this could increase the premium placed on high-level expertise.

Koenen reinforced the importance of an “outside-in” perspective. Practice growth should remain client-led. AI may accelerate efficiency, but firms must continuously ask: what do clients truly need, and how can we deliver it better?

Key Takeaways

• Consolidation continues, particularly with firms strengthening US and cross-border capabilities.
• Cultural alignment is critical in mergers and lateral hiring.
• Private equity reshapes law firm dynamics and must be approached with caution.
• Alternative models and technology are empowering new forms of practice.
• AI is likely to enhance strategic work rather than replace it.
• Sustainable growth requires clarity of purpose and client-centric thinking.