Legaltech will accelerate over the mid to long-term
A huge wave of new technologies is disrupting legal services, an industry that has remained fragmented and inefficient for a long time. AMR’s information team believes legaltech and the associated transformation of legal services, presents exciting opportunities for private equity to create value.
In AMR’s Legaltech one-pager, we highlight the big developments in the contract due diligence review segment, including recent deals (Litera acquires Kira Systems) and firms raising significant VC.
What are the impacts of Covid-19?
AMR believes in the mid to long-term COVID-19 will accelerate legaltech adoption as a means of reducing costs and transforming delivery models.
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.
What is the PE play?
- Legaltech remains the most fragmented process automation and outsource business services market
- In Q3 of 2020 there were 32 legal technology M&A transactions completed, a significant step up from the historic average of roughly 15 legal technology deals per quarter
- For PE funds entering the market, there is potential to strengthen individual service offerings before selling on to platform-driven corporates/PE firms
- Alternatively, funds can construct their own platform by investing in an appropriate rostrum of brands and bolt-ons.
AMR has built deep expertise across a range of verticals in Workflow Information & Decision Tools. 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.
Want more information?
For more insights on the legaltech market, please contact:
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, Media, and Events. 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.