The KPMG Legal Services Division Reports Record Revenue Growth
Revenue growth refers to an increase in revenue over a period of time. In accounting, revenue growth is the rate of increase in total revenues divided by total revenues from the same period in the previous year. Revenue growth can be measured as a percent increase from a starting point.
KPMG’s legal services division revenue rose by more than 30 percent in 2018 in a record-setting performance, according to the firm that expects growth to continue in a burgeoning market that’s stoking concerns among traditional law firms about potential competition.
Such fast-paced expansion into the legal sector is in line with the three other Big Four accounting firms—Deloitte, EY, and PwC. Each has made major inroads into global legal services recently in jurisdictions outside the United States where these firms are allowed to practice law.
KPMG said in a press release that its legal practice added 20 partners last year, expanding to more than 2300 legal professionals worldwide.
The Big Four differ from most traditional law firms in that they offer many other services to clients aside from just legal advice, often leveraging their capabilities in tax, audit, technology and consulting.
KPMG said last month that it had expanded its law offerings to Hong Kong through its new affiliated legal practice, SF Lawyers. KPMG hopes to grow that office to 20 attorneys in its first year. At the same time, the firm expects to open an associated office in Shanghai later in 2019.
KPMG attributes part of its legal sector progress to the launch of its new Legal Operations and Transformation Services units that aim to assist legal departments in streamlining their operations.
That service is available across KPMG’s global network of lawyers and offers departments help with advancing their legal technology and finding proper sourcing for their work.
KPMG’s announcement comes as its professional services peers have made similar entrees into legal markets in Asia, South America, and the Middle East. Last September, for example, EY touted its extended legal services reach to more than 2200 legal practitioners in more than 80 countries.
The Big Four are restricted by regulations and state bar rules from opening law offices in the United States that serve domestic clients.
Yet some have managed to gain a foothold, which has served to stoke concerns among United States law firms about the possibility they may someday face tough competition from companies with significant size, international scope, advanced technology, and revenue advantages.