6 Smart Ways Plaintiffs Firms Can Compete with Private Equity

In this blog, we feature insights from legal industry expert Peter Webb about strategies plaintiffs law firms can use to compete with private equity (PE) in today’s increasingly competitive litigation market.

Why Law Firms Need to Rethink Strategy in a PE-Backed Legal Market

Plaintiffs law firms are feeling the pressure—not just from rival law firms, but from private equity-backed legal enterprises entering the litigation space with deep pockets and aggressive growth goals.

For contingency fee law firms that manage through long case timelines and tight cash flow, competing with private equity-backed competitors requires greater strategic discipline.

In a recent interview, Peter Webb, founder of Firm Performance, urged trial lawyers to reexamine their business strategy, operations, and long-term planning.

“The landscape is becoming more competitive because there’s more competition,” says Peter. “You have to go where the attention is or where your potential clients are.”

6 Strategic Ways Plaintiffs Law Firms Can Compete with Private Equity

In response to this shifting landscape, Peter offers six practical strategies for contingency fee law firms to gain a competitive edge:

1. Take a Fresh Look at How Your Firm Operates
   “Take stock of how your firm operates overall,” says Peter. Evaluate the basics—money in, money out, profitability, and future goals. Whether that means expanding geographically, focusing on higher-value cases, or downsizing low-return practice areas, “you need to decide what your five-year plan is.”
2. Prioritize Succession Planning
   “Another thing that doesn’t get asked often enough is what’s your retirement or succession plan,” Peter points out. Many law firm leaders focus so heavily on the present that they ignore the future. A thoughtful succession plan protects your firm’s legacy—and value.
3. Start Tracking How You Get Business
   According to Peter, most firms lack reporting discipline and “are not tracking [client acquisition] nearly at the level that they need to be.” Knowing a firm’s marketing ROI and lead sources is foundational. As Peter points out: “What are you doing, not just in terms of activity, but productivity? What is it producing?”
4. Identify Your Firm’s Distinct Advantage
   Playing to your firm’s strengths is another key strategy. “Do you have a distinct advantage?” Peter asks. Whether it’s legal skill, client service, or community presence, playing to these strengths can improve client experience and boost your word-of-mouth referrals—lowering marketing costs.
5. Determine and Invest in Your Brand
   Peter challenges firms to consider their brand identity: “What does your name mean in the community or among your peers?” Every firm has a brand—even if it’s unintentional. Now is the time to define and promote it.
6. Reconsider Old Protocols
   The legal industry is evolving—your firm should too. “What got you to where you are now will not get you to wherever the end of that vision plan is,” notes Peter. Revisit long-standing processes and ask: are they still working? Then, challenge and change them to get you to the next level.

Learn More

Click the video above to watch the full conversation with Peter Webb and learn how law firm leaders can rethink strategy, operations, and succession planning to compete with private equity.

Looking for more insights from Peter Webb?

Watch our video “Overcoming Law Firm Profitability Challenges: 4 Keys”.