Ambition and Anxiety. Law firm leaders collectively reflect both.
This is precisely why internationally recognized consultant Patrick McKenna and I teamed up for our 6th survey of law firm leaders. We asked a broad spectrum of questions, including what will happen in 2026.
Use these insights to help learn:
- What to expect in the market
- How your budget requests will be received
- Implications for your strategy
Specifically, we asked law firm leaders to lay odds on 9 key events and outcomes happening in 2026:
Law firms will face an externally caused existential threat in 2026 – 39%
More leaders see the threats as having largely receded – most think they have the resilience to weather whatever storm arises.
We will see the largest M&A transaction in history – 44%
Leaders are split – signaling real uncertainty about whether dealmakers can overcome volatility, valuation gaps, and geopolitics to set a new record.
Rates will continue their upward spiral – 72%
Almost 3 of 4 see rates spiraling up – sensing strong demand for high-stakes work.
There will be a blockbuster law firm merger involving 2 mega firms – 55%
More than half of leaders expect a merger to reshape the Am Law 20 – and while they won’t name names – this is a good barometer for measuring consolidation pressure at the top.
There will be a recession in 2026 – 40%
Far from consensus – but look for these leaders to be tighter with budgets and cautious about expansion.
The credit markets will see a severe hiccup, causing a market shock – 35%
Likely an opportunity for law firms if it happens – but bad for the economy.
Lateral hiring will hit record highs – 49%
The leaders split the difference on this one; the divide captures the wildly uneven momentum across the market.
Partner dissatisfaction will reach an all-time peak – 40%
They expect partner frustration to boil over. Credit changing law firm structures, growing ranks of income partners, and more centralized decision-making.
A new global crisis will cause litigation to surge – 28%
Geopolitical risk remains a tinderbox – but most leaders think it will be contained. Interesting place for optimism.
The Story Isn’t in the Predictions – It’s in the Resilience
We asked how successful 2026 would be – and here’s the real prediction punch line:
- 37% expect a killer year – outstanding growth and profits
- 47% look for a good year – good profits and growth
- 16% are planning for a decent year – an upward move in growth and profits
Every single leader expects at least a decent year. It’s either remarkable optimism or a clear signal of how confident firms have become in navigating volatility – and how aggressively they plan to pursue the opportunities it creates.
Make your own forecast for 2026 – get the BTI Practice Outlook 2026 and BTI Litigation Outlook 2026 – your roadmaps to where spending will grow, which practices command premium rates and which industries are set to generate the highest-value opportunities.
And download a full copy of the Law Firm Leaders report: The 2026 ‘Burning Issues’ Confronting Firm Leaders here.
To a killer 2026 –
MBR
The Mad Clientist
Space is already filling up fast for the BTI Market Outlook and Client Service Review webinar — now in its 17th year. 2026 will be the most opportunity-rich and value-rich legal market in more than a decade. 61% of clients are increasing their outside counsel spend to record highs. This isn’t a trend – it’s a signal.
This is a sell-out event every year — register today!
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