Legaltech – a major opportunity for private equity

A huge wave of new technologies are disrupting legal services, an industry which has remained fragmented and inefficient for a long time. AMR’s information team believes legaltech and the associated transformation of legal services, presents an exciting opportunity for private equity to create value.

What’s happening?

The traditional legal market is being disrupted by the growth of alternative legal service providers and a shift amongst buyers towards greater unbundling and in-housing of legal work.

In the context of this sector upheaval, new legal technologies have provided the antidote to law firms and in-house teams seeking to reduce costs and offer more for less.

Law firms and internal counsels are becoming better purchasers of technology and are adapting practice management flows to include legaltech.

How large is the market?

AMR forecasts the $22bn global B2B legaltech market will grow at 11% CAGR from 2021.

Though Covid-19 may dampen the rate of growth in the short-term, AMR believes in the mid to long-term the effect will be to accelerate legaltech adoption as a means of reducing costs and transforming delivery models.

graph by AMR International showing size of global legaltech market

What is the PE play?

Legaltech remains an attractive market for generalist PE, VC and trade buyers. 2019 was a record year with investment exceeding $1.2bn.three legaltech deal examples

In particular, AMR considers eDiscovery, contract due diligence review, and legal practice management amongst some of the more interesting subsegments, with attractive growth outlooks and actionable targets.

Why AMR?

AMR’s information team has built deep expertise across a range of information verticals. We have worked consistently with world-leading information groups for over 30 years providing strategy, development and transaction support. We have also supported over 100 private equity funds.

table showing clients AMR has worked for in legaltech and B2B information

Want more information?

For more insights on the legaltech market, please contact one of AMR’s B2B Information team:

Aeckarth Malik
Head of AMR’s B2B Information Practice
aeckarth.malik@amrinternational.com

Denzil Rankine
Executive Chairman
denzil.rankine@amrinternational.com

Christine O’Connell
Principal Consultant
christine.oconnell@amrinternational.com

About AMR International
AMR is a boutique strategy consultancy with a 30-year track record in buy and sell-side commercial due diligence, specialising in Technology, Information and Events. In recent months, we have supported three out of the top five global private equity firms. We are proud that clients turn to us for transaction support and strategies that accelerate company growth. AMR has offices in London, New York, Paris and New Delhi, as well as on-the-ground experience in 40 plus countries.