UK law firms eyeing up Irish targets
The study, by the Dublin office of leading international accountancy firm Smith & Williamson, found that, in total, just over half — 52%, to be precise — of the entire legal sector in Ireland have high hopes for their business environment in 2017.
The study also shows that 55% of Irish law firms — and 54% of the top 20 — think the business outlook for the legal sector, here, improved in the past 12 months.
Those last two percentages are down from 74% and 100%, respectively, from 2014.
“Economic positivity is overshadowed by Brexit and the stability/instability of the recently elected and new style of Irish government,” said Paul Wyse, managing director of Smith & Williamson’s Dublin office.
“Concerns were also fuelled by potential outcomes in the US presidential elections and the elections in France and Germany, due to take place in 2017. These issues have affected business confidence, which is reflected in a noticeable decline in business confidence in this year’s survey,” he added.
The survey also delved into the Brexit debate and found mixed reactions. In the short-term, 36% of Irish law firms believe that Britain leaving the EU will positively impact them, with 44% thinking the opposite.
“Most firms identified the economy and uncertainty as areas that concern them most,” said Mr Wyse.
However, he added: “Brexit has created a period of uncertainty that will result in a slowdown in investment and growth. All of the top 20 firms surveyed have suggested that Brexit will have a significant impact on the legal sector over the next five years.
“The majority of firms do not expect significant negative impact on their existing client base or levels of business in the short-term. One-in-two, however, are concerned about levels of new business in the longer term.
"Most expect UK law firms to open offices in Dublin through a strategy of merger or acquisition, rather than greenfield starts.”
