The latest report on the largest law firms by revenue was released by The American Lawyer for the period 2017-2018. As we anticipate the 2018-2019 report, in this short piece, we take a look at how Australian Law Firms legal market is fairing, from a global perspective.
With a fleet of multinational companies making the list of Australia’s biggest public companies by revenue, it’s easy to assume that the best Australian law firms are staffed with those leading businesses. I made the assumption too. But appearances can be deceiving. In fact, some of the country’s best law firms have avoided developing international clients.
If you are looking to work at a law firm in Australia, there are lots of things you should do. You should initially complete your legal training then apply for internships with various firms to get a feel for what it’s like.
The big six law firms in Australia are all well-known, prestigious corporations within the legal sector.
“No surprises This YeaR”
Now, there are no surprises here, as all the firms on this list are part of the larger group popularly known as the Big 8. That said, it’s still quite interesting to see their position on the global legal market.
1. Herbert Smith Freehills
For the year 2017-2018, Herbert Smith Freehills led the pack in Australia, with gross revenue totalling $1,194,645,000. With offices in Sydney, Melbourne, Perth, and Brisbane, HSF Australia is comfortably one of the Big 8 Law firms in Australia. Interestingly though, on a global scale, the firm was ranked twenty-ninth overall, in a list that ranked the largest two hundred law firms in the world for that period.
On a similar note, the firm’s average revenue per lawyer was recorded at $577,000, an impressive figure considering that the firm has more than two thousand lawyers between its London office and Australian presence.
Herbert Smith Freehills is a multinational law firm headquartered in Sydney, Australia. The firm has offices in Asia, Europe and the United States. Herbert Smith Freehills is one of the “Big Six” leading international law firms. It has been consistently recognized as one of the world’s most innovative law firms by numerous organizations and publications.
Herbert Smith Freehills provides corporate legal services to large corporations, financial institutions and governments worldwide, with a particular focus on Asia-Pacific markets. The firm has also been ranked in the top tier for its work in many jurisdictions, including Australia, Singapore, Hong Kong and India.
2. King & Wood Mallesons
Not far behind HSF was yet another member of Australia’s Big 8 Law firms- King & Wood Mallesons. Clocking in at $1,072,000,000 in gross revenue, KWM was not far behind HSF. On the global legal market, KWM came in at position thirty-five out of two hundred.
It’s close to three thousand lawyers across Australia, China and Hong Kong averaged a personal revenue of about $388,000.
King & Wood Mallesons (KWM) is a full-service law firm founded in Sydney in 1882. The firm has more than 1,000 lawyers across 12 offices in Australia and Asia. It also has offices in Beijing, Brussels, Dubai, Hong Kong, London, Macau and New York City.
In 2017-18, KWM reported revenue of $1.2 billion. It was ranked as the second largest firm in Australia by revenue according to the 2018 Legal 500 Asia Pacific directory of leading law firms.
The firm’s key clients include Australian and international businesses across many sectors including energy and resources, financial services and insurance, telecommunications, technology and media.
3. Allens
Despite coming in third on this list, Allens stands out when compared to the first two as this firm operates solely on the Australian Legal Market. That said, with gross revenue amounting to $559,000,000 Allens is worlds away from HSF and KWM. This fact is further amplified when analysed on a global scale where the firm ranked eightieth.
It is, however, interesting to note that the firms average revenue per lawyer was higher than the first two firms, with a figure of $884,000 per lawyer.
Allens is a top Australian law firm, ranked by revenue in the latest Australian Financial Review 200 list of the country’s biggest companies. The firm was founded in 1973 and has offices in Sydney, Melbourne, Perth and Brisbane.
In 2016 Allens earned $550 million in revenue from its commercial, corporate and infrastructure work. It also has a focus on energy and resources, technology and telecommunications, media and entertainment, financial services and capital markets as well as labour law.
The firm has more than 800 partners across Australia and New Zealand who advise clients on issues relating to mergers & acquisitions, banking & finance, capital markets, commercial disputes, corporate governance & compliance, employment & industrial relations and project development.
4. Clayton Utz
In fourth place was Clayton Utz with gross revenue amounting to $376,000,000 and a global ranking of 122 out of 200. The average revenue per lawyer was recorded to be just shy of five hundred and twenty thousand dollars.
Clayton Utz is the largest law firm in Australia and was founded in 1961. The firm has over 1,000 employees across its offices in Sydney, Melbourne, Brisbane and Perth.
The firm has an annual revenue of $1 billion and has been ranked by The Australian Financial Review as one of the top 100 most innovative companies in Australia. Clayton Utz also ranks highly on both the Global 100 law firms list and The Legal 500 listing of top-tier law firms in Australia.
Clayton Utz is a full service commercial law firm with a focus on providing multi-disciplinary advice to domestic and international clients across all industry sectors. The firm’s core practices areas include corporate/commercial law, financial services, litigation and dispute resolution, property/real estate, tax/public policy and employment relations.
5. Minter-Ellison
The revenue gap further widens with Minter Ellison recording gross revue of $338,600,000.
Minter-Ellison is one of the biggest law firms in Australia, with over 500 lawyers across five offices. It has a long history of acting for major Australian companies, including ANZ Bank and Telstra. It also has an international practice and regularly acts for multinational companies such as Apple and Facebook.
In recent years, Minter Ellison has made a number of strategic acquisitions to expand its capabilities beyond traditional litigation work. In 2018 it acquired the Sydney office of Clayton Utz, which had been struggling financially under the weight of its high cost base compared to its rivals.
6. Corrs, Chambers Westgarth
Last, both on the Australian list and the global one was Corrs, Chambers Westgarth with gross revenue amounting to $199,000,000.
Corrs Chambers Westgarth is a leading Australian commercial law firm. They provide specialist legal advice to businesses, governments and individuals.
Corrs is one of Australia’s largest commercial law firms with an extensive network of offices across Australia, Hong Kong and Singapore.
They have the depth of experience and expertise to assist you with your business needs. Their team of lawyers is committed to providing high quality legal services that are focused on achieving results for our clients.
Their lawyers advise on complex issues involving corporate governance and compliance, intellectual property, mergers and acquisitions, commercial contracts, banking and finance, tax and competition law. They also have a dedicated team that provides expert advice in relation to occupational health and safety matters.
Conclusion
It’s hard to dispute that the six largest law firms in Australia, by revenue. The figures are based upon the income amounts that have been reported to the ATO, and it takes into account both entire company revenue and revenue from their legal practice division (or LPO as it’s known). Their financial details are also based upon last year’s financial year, and not the current one. Although practices tend to remain relatively stable in this industry, these firms have certainly diversified their income sources, although some rely a lot more on commercial than others.
FAQs (Frequently Asked Questions)
What are the big law firms in Australia?
The biggest law firms in Australia are Norton Rose Fulbright, Gilbert + Tobin, Corrs Chambers Westgarth, Minter Ellison, Ashurst, Herbert Smith Freehills, Allens, Clayton Utz and King & Wood Mallesons.
What are the 4 big law firms?
Four big Australian law firms are Minter Ellison, Clayton Utz, Ashurst and King & Wood Mallesons.
What are the most prestigious law firms?
The most prestigious law firms in Australia are Minter Ellison, Herbert Smith Freehills, Ashurst Australia and Allens.
What is the highest paying law firm?
On average, a lawyer gets 150,000 AUDs in Australia. Also, lawyers are paid on the basis of the experience that they have in their respective field of expertise.
Which field of law is most in demand?
As of now, family law is something that has witnessed a huge surge in demand. As many couples are choosing to go their own ways, more and more demand is going to be seen in this field.
What is the easiest type of lawyer to become?
Government law is one of the fields that fairly easy to gain mastery over. Conveyancing and making wills with estate planning is also not that difficult.