LONDON, May 13, 2025 (GLOBE NEWSWIRE) -- Today, LexisNexis®, a leading global provider of legal information and analytics, released a new report – Bellwether 2025: Marginal gains – The hidden levers of growth. The report reveals that amid economic uncertainty and rising overheads, smaller firms are prioritising control and sustainability over scale.
Mergers and acquisitions are falling out of favour. Instead, nearly three-quarters (72%) of lawyers surveyed said their firm plans to grow organically, up from 63% in 2024 and 40% in 2023. Just 5% are considering mergers or acquisitions, compared with 10% last year and 13% in 2023. The biggest reasons for this shift are financial risk (53%) and difficulty finding the right partner (50%).
When asked what’s holding their firm back from achieving their business goals, the most cited barrier was the tough economic climate (37%).
Despite these headwinds, there are signs of resilience. Over half (58%) of lawyers at small and mid-sized firms reported revenue growth, up ten percentage points from last year.
“Firms are seeking full control over their operations, signalling a careful rebalancing rather than a race to scale,” said Tim Rayner, Small Law Market Lead at LexisNexis UK.
That same caution is shaping investment decisions. While tech spending has cooled slightly, 43% of firms still plan to invest soon, suggesting a move toward more deliberate, phased adoption. Legal recruitment is also on the rise, with 39% of firms planning to hire in the next 12 months.
Client expectations continue to rise. Four in five lawyers (80%) report increased pressure to respond faster, while 50% say clients now expect clear, upfront pricing. A third (33%) say clients are demanding more flexibility in how legal services are delivered.
AI is beginning to influence these decisions, with 39% of firms saying it has driven increased tech investment, particularly in legal research and document automation. However, data and analytics remain underused, and internal barriers such as limited time and resistance to change are slowing progress.
Commenting on the report, Rayner added:
“This year’s findings show that small firms aren’t standing still. They’re moving forward with purpose. Growth, investment and innovation are happening, not through radical change, but through smart, sustainable decisions that protect profit margins and deepen client relationships.”
These careful, incremental choices are proving to be the foundation for long-term success and stronger, more resilient client relationships.
Now in its thirteenth year, the Bellwether Report reveals a sector advancing with intent, favouring marginal gains over sweeping transformation.
About LexisNexis Legal & Professional
LexisNexis Legal & Professional® provides legal, regulatory, and business information and analytics that help customers increase their productivity, improve decision-making, achieve better outcomes, and advance the rule of law around the world. As a digital pioneer, the company was the first to bring legal and business information online with its Lexis® and Nexis® services. LexisNexis Legal & Professional, which serves customers in more than 150 countries with 11,800 employees worldwide, is part of RELX, a global provider of information-based analytics and decision tools for professional and business customers.
Notes for editors
- This press release is embargoed until 00:01 on 12 May, 2025
- You can view an ungated version of the report here: https://www.lexisnexis.co.uk/insights/bellwether-2025/index.html
- Please link to the gated report in any articles: https://www.lexisnexis.co.uk/research-and-reports/bellwether-2025.html
Name: Dylan Brown Email: Dylan.Brown@lexisnexis.co.uk Job Title: Content Marketing Manager, LexisNexis UK
