US spending by global companies is soaring—and 75% of their US law firm hires are outside the Am Law 50.
Global company spending now accounts for 40% of US corporate legal spending, up from 30% in 2010. We find global companies are more active in developing markets, building sales channels, and creating and filling product pipelines while investing in infrastructure and talent. The global companies operating in the US have become a market unto themselves.
Global companies are propping up the US corporate legal market, as corporate legal spending by the Global 500 borders on a boom by today’s standards. US spending by global companies is growing at a compound annual growth rate of 7.2%, while non-global companies’ US legal spending is shrinking at a rate of 2.7%.
Global companies show vigorous interest in working with every size and manner of law firm. While the largest litigation and M&A will find its way to global law firms—the rest is up for grabs.
Thinking Global, Hiring Local
Global companies show an especially strong interest in using both mid-sized as well as larger firms in Litigation, Employment, IP, IP Litigation, Regulatory, Corporate and small- and mid-sized M&A. Again, large M&A and cross-border transactions will remain the province of large and global firms.
The law firms successfully targeting US spending by global companies are focusing their pitches to discuss the more unique aspects of global companies, including:
- Foreign Corrupt Practices Act
- Transfer pricing
- Labor-related issues
- Regulatory issues
The pitches are tailored and customized for each client—and almost all come from firms who got their start in an advisory role.
Global firms are most impressed by what you know about them and their US operations.
Learn how to take advantage of this growth area and more in BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending.