Double trouble: Deloitte’s UK legal team doubles after their acquisition of Kemp Little
Monday 16th November 2020
Deloitte announced that they will buy Kemp Little – a technology and digital media law firm known for commercial tech, corporate, employment, data protection, IP and financial regulation. Kemp Little also has a reputation for developing award-winning Legal Tech products. The acquisition is part of a pattern of the Big Four accountancy firms branching into legal work and expanding their offerings, which could bring out regulatory and competition issues as it reaffirms the monopoly that they have over certain professional services sectors. PwC, for example, has over 3,500 lawyers worldwide, which would make it a top 10 law firm by headcount.
Deloitte was the last of the Big Four to enter the legal market in 2018, but has seen massive successes ever since. Their tax and legal department made revenues of £910m in the year leading up to May 2020, making it the UK firm’s largest division (although it is unclear how much was generated from purely legal work). The expansion into the legal market could be an indication of how firms are now needing to offer clients an “end-to-end service” and diversifying their offerings – although the news about operational separation could put a halt to this.
The acquisition of Kemp Little specifically shows the current trend towards technology, as the sector seems to have emerged victorious since the first news of the pandemic. It also indicates the need for innovation within the legal sector, and the efficiency push with the incorporation of Legal Tech and AI.
Whilst Magic Circle firms continue to gain increased revenues, it will be interesting to see whether the legal practices of the Big Four gain popularity and clientele as they offer full business services in the future.
