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Revenue growth was modest last year and profits remained flat for global law firm Baker McKenzie, as the law firm shifted to more flexible client demand.
Chicago-based Baker McKenzie, the largest law firm in the US by attorney count, saw net income steady at $1.24 billion in the fiscal year ended June 30. The firm said that number was “on par” with the previous year, when it reported a 36.7% year-over-year increase in revenue.
The firm reported $3.3 billion in revenue, representing a 5.5% increase from a year earlier. Baker McKenzie crossed the $3 billion threshold for the first time last year.
Baker McKenzie said in a statement that the results were light “although the price has recovered in recent months as the industry returns to the post-pandemic mode of operation ,” and investing in talent, technology and location improvements.
Broken down by region, the firm reported a 12.1% increase in revenue in North America, with slower growth elsewhere. Revenue rose 3.3% in the Asia-Pacific region, 3.4% across EMEA and 4.1% in Latin America, the firm said.
The financial results come as industry watchers wait to see how law firms will fare after posting record profits in 2021, amid a global slowdown in activity. mergers and acquisitions.
The combination of declining demand for legal services and rising costs has created a financial crisis for firms in 2022, according to second-quarter data analysis by Thomson Reuters Institute, which shares the parent company to Reuters.
Baker McKenzie said some of the “real” areas of activity that contributed to the growth were private equity, which rose 25.7% in the most recent financial year. Its mergers and acquisitions activity increased 9.2%, while antitrust and competition increased 10.2%, the company said.
Industry sectors including health and wellness, technology and energy, mining and infrastructure also grew, the firm said.
Baker McKenzie has more than 5,000 internationally qualified lawyers, according to a spokesperson.
Read more:
Baker McKenzie hits the $3 billion revenue mark, and boasts an increase in profits
Baker McKenzie says the flat year has weighed on law firm profits
Our Standards: Thomson Reuters’ Guardian Principles.
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