The UK legal sector appears to be moving into a more active phase of consolidation, mimicking roll-up activity seen in the accountancy sector over the last 10 years.

MarktoMarket Origination Director, Matthew Burns, recently hosted a webinar comparing the M&A environment of the accountancy and legal sectors. (Request to watch the recording below)

MarktoMarket data shows that there were 23 law firm platforms bought as part of PE buy-and-build strategies since 2021, compared with 59 in accountancy. There were 545 acquisitions of law firms since 2021.

Is law following accountancy?

A narrative is building that the law firm consolidation story is comparable with accountancy, but 5-10 years behind.

Accountancy buy-and-build is now more mature, with secondary buyouts already taking place. For example, August Equity, which invested into ABB has since exited to Goldman Sachs. In the legal sector, a notable equivalent is Stowe Family Law, where Livingbridge invested in 2017, before selling to Investcorp in late 2024.

A key turning point that enabled growth in law firm M&A came in 2012 when Alternative Business Structure (ABS) licenses were first issued, which allowed non-lawyer ownership of law firms.

Why is law firm consolidation more complex?

Despite this change, law firms can be harder to consolidate than accountancy practices because partner relationships, culture and client ownership are often more personal. Some legal services are also inherently harder to scale than others.

This may help explain why investors are currently showing more interest in consumer-facing areas such as personal injury and family law. These markets are perceived as more scalable and fragmented, creating clearer opportunities for wider consolidation.

Why are law firms considering selling to Private Equity?

Private Equity can help law firm owners leverage the value they have built, as well as providing capital for growth and technology investment. The rapid deployment of AI is an increasingly significant reason why firms may need external capital and expertise to remain competitive.

However, Private Equity also brings challenges. Profit sharing may be reduced by investor distribution and servicing debt, younger and older equity partners may have different priorities, and some firms may be concerned about cultural change or loss of control.

Private buy-and-build, and search funds are other avenues worth considering. These typically involve longer ownership horizons compared to PE, and deal structures can be more flexible, with the potential to retain equity.

As the legal sector is in the earlier stages of consolidation, multiples are still relatively low compared to the accountancy market which has seen inflated multiples over the past few years, representing an early arbitrage opportunity for well-positioned buyers.

That said, management challenges need to be overcome by search fund buy- and- build operators. As a group grows, demands around culture, operations and geographical coverage can be harder to navigate with limited private resources.

Is there a multiple arbitrage opportunity?

MarktoMarket data highlights clear valuation differences by deal size. Smaller law firm acquisitions are trading around 2x – 4x EBITDA, while deals above £50 million EV are moving towards 8x EBITDA.

Revenue multiples follow a similar pattern. Smaller deals cluster around 1x – 1.5x Revenue, while larger deals are moving towards 3x revenue. This creates a multiple arbitrage opportunity for buyers that can acquire smaller firms, build scale and create a larger platform.

Who are the active buyers?

Active acquirers since 2024 include PE-backed platforms like Fletchers Solicitors, Lawfront Group and Stowe Family Law, listed acquirer Knights, and trade buyers Askews Legal, Talbots Law and Gilson Gray.

2026: a pivotal year?

Legal M&A is earlier in its consolidation journey than accountancy, but increased PE and PE-backed acquisition activity suggests momentum is building.

Will the UK legal sector continue to see increased activity through 2026 and into 2027, and eventually reach the same level of consolidation as accountancy?

Get in touch to see how the MarktoMarket data platform can help you assess the market, identify opportunities and make better-informed decisions.

To learn more about the MarktoMarket platform, get in touch with matthew.burns@marktomarket.io  or kathryn.stevenson@marktomarket.io

Written by MarktoMarket Marketing Executive, Bradley Evans; MarktoMarket Origination Director, Matthew Burns; and MarktoMarket Commercial Manager, Kathryn Stevenson.