As we move into 2025, the legal industry is poised to experience a notable surge in transactional deal activity. Leading industry sources point to a resurgence in mergers, acquisitions, and other complex deals, signaling a positive shift after a period of economic uncertainty. However, this projected increase in deal volume will present new challenges for law firms, particularly around managing larger workloads efficiently and effectively, as well as delivering quality legal services that lead to new and repetitive business. To stay competitive and capitalize on this growth, law firms must embrace technology-driven solutions that provide true efficiency gains.
The question isn't just how law firms will handle the influx of work, but how well they will adapt. Firms that leverage modern legal technology to streamline operations, improve collaboration, and reduce time spent on non-billable are emerging as leaders in this evolving landscape.
The Data: Transactional Deal Volume Expected to Rise in 2025
Industry insights suggest that 2025 will bring an uptick in transactional activity. In a Dykema survey, 70% of respondents said they expect the M&A market to strengthen in the coming months. Factors such as improving economic conditions, pent-up demand for deals, and the end of global election season are driving this trend.
The transactional boom presents opportunities for law firms to expand their client base and generate substantial revenue. However, it also shines a spotlight on operational inefficiencies that lead to burnout, compounding the rising mental health challenges, derailing teams unable to keep pace. Relying on outdated workflows, manual processes, and siloed communication will make it nearly impossible to meet the demands of a busier market. Firms that are not prepared for this growth put themselves at risk of being overwhelmed by the sudden scale and speed of the work.
Why Law Firms Need to Prioritize Technology Adoption
Increased deal volume isn’t the only reason law firms need the right tech to support their workflows. Clients are becoming more discerning when selecting legal partners, prioritizing firms that demonstrate efficiency, transparency, and innovative use of technology. According to Thomson Reuters, 48% of legal departments plan to move work and will be evaluating use of “appropriate technologies” as part of their selection process—as many as one in five corporate legal departments list technology as a mandatory requirement for RFP selection. As RFP processes evolve and criteria to win business becomes more competitive, the ability to scale and keep up with demand will be the winning factor.
In this competitive environment, firms that can showcase their use of advanced tools like transaction management software will have a clear advantage. Technology not only signals a firm's commitment to innovation but also provides tangible benefits that clients value: faster deal execution, less risk, and cost savings.
It’s not just RFP processes that are changing—20% of legal departments plan to move transactional work in-house or to lower-cost providers. An uptick in companies and law firms hoping to reduce costs have already made their way to DealCloser. Whether it’s corporate teams bringing work in-house or law firms hoping to automate rote work—streamlining deal flow is the key to standing out amongst the competition.
Transaction management software, in particular, is a proven solution for firms preparing for increased deal volume while balancing the need to lower costs. This software automates key aspects of transactional work, reducing the time spent on manual tasks and freeing up lawyers to focus on driving the best outcomes for their clients. Streamlining collaboration with closing checklists, automatically compiling signature pages and packets, and creating closing sets in minutes can drastically minimize write-offs, as well as accelerate deal velocity.
How Transaction Management Software Prepares Firms for the Future
One of the most significant benefits of transaction management software is its ability to optimize internal collaboration—a crucial need in today's hybrid and remote working environments. With teams spread across locations and time zones, keeping deals on track can be a logistical nightmare. Instead of static checklists, transaction management software provides checklists with real-time updates and a centralized platform for tracking deal progress, ensuring that everyone involved has access to the latest information. No more version control headaches or chasing down colleagues for status updates; the tech facilitates seamless communication, better organization, faster decision-making, and improved accuracy across deal teams.
Additionally, transaction management software enhances operational efficiency, enabling law firms to deliver faster results to clients while accelerating their billing cycles. By automating document assembly, signature tracking, and other traditionally time-consuming processes, firms can shorten deal timelines significantly. This speed not only improves client satisfaction but also allows firms to issue bills sooner and collect payments faster, bolstering cash flow and profitability. In a high-volume transactional market, these efficiency gains translate into significant financial returns.
One firm that was early to adopt this technology reported that the efficiency gains allow them to deliver closing sets and bills when people are still excited about their transactions. With the speed and seamlessness of their deal process still fresh on their minds, clients are happier and pay their bills faster. In turn, with accelerated deal velocity, the firm is able to take on more clients and close more deals—and as much as doubling their deal volume.
A Quick Win with High ROI
As 2025 approaches, law firms face both opportunity and challenge. The anticipated surge in deal volume will test firms' ability to manage larger workloads efficiently, meet client expectations, and remain competitive. Transaction management software offers a proven solution, delivering immediate benefits with a high return on investment.
By speeding up deal execution and billing, transaction management software equips law firms to handle increased demand while positioning themselves as leaders in the market. For firms looking to prepare for the future, investing in technology is a strategic decision that promises quick wins and long-term growth.
Firms can leverage this opportunity while balancing risk by adding technology using a modular approach. Selecting a technology that gives firms space to start small by automating one or two aspects of deal management—like signature management and closing book creation—creates latitude to scale as needs increase. Teams can receive the support they need to work more efficiently without worry of overspending on tech that doesn’t fulfill its promises.
In a fast-paced transactional environment, the firms that thrive will be those that act now—embracing technology, enhancing efficiency, and exceeding client expectations at every turn.
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