What's Happening?
KPMG, a major accounting firm, has launched a new law firm in Arizona, taking advantage of relaxed ownership rules that allow non-lawyers to have stakes in law firms. This move has raised concerns among traditional law firms about potential competition. KPMG Law US aims to provide legal services that complement high-dollar transactions typically handled by big law firms, focusing on post-closing integration and compliance work. The firm is structured to maintain independence from KPMG's other operations, with separate entrances and technology systems to ensure ethical standards are upheld.
Why It's Important?
The establishment of KPMG Law US represents a significant shift in the legal industry, potentially challenging the traditional big law model. By offering services that big law firms have left behind, KPMG could disrupt the market, providing more cost-effective solutions for high-volume legal work. This development could lead to increased competition and innovation in legal services, benefiting clients seeking comprehensive solutions. However, it also poses a threat to established firms that may need to adapt their business models to remain competitive.
What's Next?
KPMG Law US plans to expand its services beyond Arizona by forming co-counsel relationships in other states, leveraging its global presence to serve clients with international operations. The firm will continue to focus on integrating legal services with its existing business offerings, potentially setting a precedent for other non-traditional entities entering the legal market. Traditional law firms may need to reassess their strategies to address this new form of competition.
