ALM Announces Release of The Mid-Market 50 Report
Ranking of the Top 50 revenue-grossing US-based law firms outside of the Am Law 200
New York, NY – October 24th, 2023 – ALM has released its second Mid-Market Pro 50. This report ranks the top 50 revenue-grossing US-based law firms outside of the Am Law 200 that disclose financial performance and firm staffing information to ALM. The report, which examines key performance indicators from the 2022 fiscal year, also includes a ranking of the Mid-Market Pro 50 based on revenue per lawyer and attorney headcount, as well as an analysis of revenue and profitability metrics by US-headquartered region.
In a year that signaled regression to the mean for the Am Law 200 after back-to-back years of record profitability, the Mid-Market Pro 50 produced double-digit growth in gross revenue, net operating income, profit per lawyer, profit per equity partner, and average compensation for all partners.
“This year’s Mid-Market Pro 50 shows that a number of mid-market firms produced impressive financial results in what has been arguably the most competitive environment for law firms ever,” said Hank Grezlak, Editor-in-Chief, Legal Themes & Regional Brands, ALM. “In a broader sense, the Mid-Market Pro 50 demonstrates that this segment – the mid-market – is a vibrant one, and that regardless of size, well-run firms are turning in strong economic performances. We have data for more firms this year and we’re eager to improve upon that for next year.“
Key Takeaways from this report include:
- The Mid-Market Pro 50 significantly outperformed the Am Law 200 Tier 4 (firms ranked 151-200) in year-over-year growth in six of seven critical revenue and profit metrics
- The Mid-Market Pro 50 posted double-digit year-over-year growth in five of the seven categories
- While the Mid-Market 50 grew gross revenue 13% in 2022, the segment also increased Revenue per Lawyer nearly 10% (9.3%)
- The Mid-Market 50 produced double-digit growth in both Profits per Lawyer and Profits per Equity Partner without significant adjustments in leverage
- Risks remain for the Mid-Market, especially with attorney talent, as US-based firms not ranked in the Am Law 200 accounted for nearly 30% of all Am Law 200 partner hires in 2022, making unranked firms the largest source of Am Law 200 partner hires
“The Mid-Market Pro 50 Ranking indicates that midsize firms are not only keeping up with, but are outpacing Am Law 200 Tier 4 firms on key financial metrics,” said Michelle Matroni, Sr. Research Manager and Legal Rankings Lead for ALM. “Despite the continued talent retention risk, the Mid-Market Pro 50 also succeeded in increasing total lawyer headcount by 3.4% in 2022.”
Dave Gialanella, Managing Editor, Regional Brands, ALM, added: “The ranking reaffirms how midsize firms are in many cases on a stronger growth trajectory than some firms in the Second Hundred–demonstrating how vital this segment is to the overall business-of-law picture, and how important it is to closely cover midsize firms. This picture will become clearer each year as we gather and present data from a growing number of midsize firms.”
The data was collected by ALM’s Survey & Research team and the report was created in collaboration with ALM’s Analysts and Mid-Market Editorial team. The financial performance and staffing data for each firm was disclosed by the firm to ALM via the AM Law 200/NLJ 500 Survey.
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