Full Disclosure:
Which magic circle law firm makes the most money?
By Jaysen Sutton |
Hi Reader 👋🏽,
Linklaters and Allen & Overy posted their financial results last week. I thought I'd do a little digging. Which is the biggest?
If we look at the 2023 financial year:
Allen & Overy - £2.1bn
Clifford Chance - £2.062bn
Linklaters - £1.9bn
Freshfields - £1.84bn
Allen & Overy topped the chart in 2023 and will (probably) do the same in 2024 (pre merger). We're just waiting to see the results from Clifford Chance.
Last year, Freshfields said they don't want to participate in this game anymore. (The game of circulating financial press releases, but they'll still submit their info in Companies House later this year).
As of last week, Linklaters became the third of the magic circle to surpass £2bn in revenue (A&O and CC got there last year). Freshfields is yet to get there.
If we compare this to the revenue of the big US law firms* in London:
Kirkland - $7.2bn
Latham - $5.69bn
Skadden - $3.27bn
Sidley Austin - $3.10bn
Gibson Dunn - $3.07bn
Ropes & Gray - $2.99bn
White & Case - $2.95bn
Allen & Overy would (roughly) sit just underneath this group.
As for profitability, this was harder to determine. Freshfields has generally reported the highest profit per equity partner, but this data point has a lot of problems. I also can't find their data in their financial press releases for profit before tax. Excluding Freshfields, Allen & Overy, has recorded the highest profit before tax, followed by Linklaters and Clifford Chance.
*excluding the Swiss vereins
As for profitability, this was harder to determine. Freshfields has generally reported the highest profit per equity partner, but this data point has a lot of problems. I also can't find their data in their financial press releases for profit before tax. Excluding Freshfields, Allen & Overy, has recorded the highest profit before tax, followed by Linklaters and Clifford Chance.
Expect the newly-formed A&O Shearman to push the combined firm far higher in the revenue rankings. Will be interesting to see how this impacts profitability in the next few years.
Have any thoughts? I'd love to hear your perspective below!
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