- Sep 7, 2024
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In this guide, I’ll be talking about how to identify a law firm’s competitors. This is a skill that’s not only useful for applications but also helps you get a much better understanding of the legal industry as a whole. Honestly, this was something I initially struggled with. I found it hard to figure out where one firm stood compared to others in the same space. However, once I cracked the code, everything became so much easier. Applying to firms felt less overwhelming because I already knew the industry inside out. For any firm I applied to, I also had a clear picture of who their competitors were, which made answering application and interview questions so much smoother.
Understanding a law firm’s competitors is crucial because it helps you position yourself as an informed candidate. It shows you’ve done your homework and understand not just the firm but also the broader landscape they operate in.
This is a simple four-step method I use to figure out a firm’s competitors, with some examples to make it easier to follow.
Step 1: Identify the Firm’s Core Practice Areas
Start by looking at the firm’s primary areas of expertise. You can find this information on the firm’s website under "Practice Areas" or "What We Do."
Example 1 (CMS):
CMS has a strong focus on tax law, real estate, and energy and infrastructure.
Example 2 (Transactional Law Firms):
Kirkland & Ellis and Latham & Watkins specialise in high-yield debt and large-scale private equity (PE) transactions. Travers Smith focuses on mid-market private equity.
Step 2: Search for the Firm’s Chambers Rankings
Visit Chambers and Partners’ website and check the firm’s rankings in their core practice areas. Focus on the practice areas where the firm is ranked highly.
Example 1 (CMS):
CMS is ranked Band 1 for Tax in the UK.
Example 2 (Transactional Law Firms):
Kirkland & Ellis and Latham & Watkins are consistently ranked at the top for Private Equity: High-End Capability and Capital Markets: High-Yield Debt. Travers Smith is ranked in Band 1 or 2 for Private Equity: Mid-Market.
Step 3: Identify Other Firms with Similar Rankings
Look at which other firms are ranked in the same or adjacent bands for those practice areas. These firms are likely competitors as they operate at a similar level of expertise and reputation.
Example 1 (CMS):
For Tax, other firms ranked in Band 1 or Band 2 include PwC Legal, DLA Piper, and Freshfields Bruckhaus Deringer.
Example 2 (Transactional Law Firms):
In high-yield deals, firms like Weil, Gotshal & Manges and Simpson Thacher frequently compete with Kirkland and Latham. In mid-market private equity, Macfarlanes and Addleshaw Goddard are notable competitors to Travers Smith.
Step 4: Analyse the Scope and Type of Deals
Investigate the types of deals the firm works on. Are they advising large multinationals, mid-market clients, or startups? Do they focus on complex cross-border transactions or smaller domestic matters? Identify other firms handling similar client types and deal scopes.
Example 1 (CMS):
CMS often works on mid-market deals and has a strong client base in the energy sector. Firms like Eversheds Sutherland and Pinsent Masons also operate heavily in these areas.
Example 2 (Transactional Law Firms):
High-Yield Private Equity: Kirkland & Ellis and Latham & Watkins typically handle large-scale, cross-border transactions for major PE clients like Blackstone and KKR. Their deals are often complex, high-value, and heavily leveraged.
Mid-Market Private Equity: Travers Smith advises mid-market PE firms like Bridgepoint and Inflexion, often on buyouts, exits, and growth capital investments. Their deals are smaller in scope but require tailored, hands-on advisory.
Confirm Your Findings
If a firm appears consistently across all four steps, it’s very likely to be a key competitor.
Example 1 (CMS):
When analysing CMS, you’ll notice that Eversheds Sutherland, Pinsent Masons, and DLA Piper come up repeatedly in tax law, real estate, and mid-market energy deals. These firms are strong competitors of CMS.
Example 2 (Transactional Law Firms):
For high-yield private equity deals, Kirkland & Ellis and Latham & Watkins consistently compete with Simpson Thacher and Weil, Gotshal & Manges. For mid-market private equity deals, Travers Smith faces competition from Macfarlanes and Addleshaw Goddard.
Note:
Although I’ve been going on and on about band rankings, band rankings are not everything. A firm may not have a Band 1 ranking in an area, but still have a good specialty in that practice - within a niche instead. Find out which law firms compete within that niche as well, to decide their respective competitors.
Why This Approach Works
This method saves time and ensures accuracy by systematically cross-referencing rankings, deal types, and client profiles.
Best of luck this cycle… we’re rooting for you !!!
Understanding a law firm’s competitors is crucial because it helps you position yourself as an informed candidate. It shows you’ve done your homework and understand not just the firm but also the broader landscape they operate in.
This is a simple four-step method I use to figure out a firm’s competitors, with some examples to make it easier to follow.
Step 1: Identify the Firm’s Core Practice Areas
Start by looking at the firm’s primary areas of expertise. You can find this information on the firm’s website under "Practice Areas" or "What We Do."
Example 1 (CMS):
CMS has a strong focus on tax law, real estate, and energy and infrastructure.
Example 2 (Transactional Law Firms):
Kirkland & Ellis and Latham & Watkins specialise in high-yield debt and large-scale private equity (PE) transactions. Travers Smith focuses on mid-market private equity.
Step 2: Search for the Firm’s Chambers Rankings
Visit Chambers and Partners’ website and check the firm’s rankings in their core practice areas. Focus on the practice areas where the firm is ranked highly.
Example 1 (CMS):
CMS is ranked Band 1 for Tax in the UK.
Example 2 (Transactional Law Firms):
Kirkland & Ellis and Latham & Watkins are consistently ranked at the top for Private Equity: High-End Capability and Capital Markets: High-Yield Debt. Travers Smith is ranked in Band 1 or 2 for Private Equity: Mid-Market.
Step 3: Identify Other Firms with Similar Rankings
Look at which other firms are ranked in the same or adjacent bands for those practice areas. These firms are likely competitors as they operate at a similar level of expertise and reputation.
Example 1 (CMS):
For Tax, other firms ranked in Band 1 or Band 2 include PwC Legal, DLA Piper, and Freshfields Bruckhaus Deringer.
Example 2 (Transactional Law Firms):
In high-yield deals, firms like Weil, Gotshal & Manges and Simpson Thacher frequently compete with Kirkland and Latham. In mid-market private equity, Macfarlanes and Addleshaw Goddard are notable competitors to Travers Smith.
Step 4: Analyse the Scope and Type of Deals
Investigate the types of deals the firm works on. Are they advising large multinationals, mid-market clients, or startups? Do they focus on complex cross-border transactions or smaller domestic matters? Identify other firms handling similar client types and deal scopes.
Example 1 (CMS):
CMS often works on mid-market deals and has a strong client base in the energy sector. Firms like Eversheds Sutherland and Pinsent Masons also operate heavily in these areas.
Example 2 (Transactional Law Firms):
High-Yield Private Equity: Kirkland & Ellis and Latham & Watkins typically handle large-scale, cross-border transactions for major PE clients like Blackstone and KKR. Their deals are often complex, high-value, and heavily leveraged.
Mid-Market Private Equity: Travers Smith advises mid-market PE firms like Bridgepoint and Inflexion, often on buyouts, exits, and growth capital investments. Their deals are smaller in scope but require tailored, hands-on advisory.
Confirm Your Findings
If a firm appears consistently across all four steps, it’s very likely to be a key competitor.
Example 1 (CMS):
When analysing CMS, you’ll notice that Eversheds Sutherland, Pinsent Masons, and DLA Piper come up repeatedly in tax law, real estate, and mid-market energy deals. These firms are strong competitors of CMS.
Example 2 (Transactional Law Firms):
For high-yield private equity deals, Kirkland & Ellis and Latham & Watkins consistently compete with Simpson Thacher and Weil, Gotshal & Manges. For mid-market private equity deals, Travers Smith faces competition from Macfarlanes and Addleshaw Goddard.
Note:
Although I’ve been going on and on about band rankings, band rankings are not everything. A firm may not have a Band 1 ranking in an area, but still have a good specialty in that practice - within a niche instead. Find out which law firms compete within that niche as well, to decide their respective competitors.
Why This Approach Works
This method saves time and ensures accuracy by systematically cross-referencing rankings, deal types, and client profiles.
Best of luck this cycle… we’re rooting for you !!!
