Transactional deal activity is anticipated to rise in the UK this year, especially in the private equity and M&A markets. Leading industry sources point to a resurgence in complex deals worldwide, including the US and UK, signaling a positive shift after a period of global economic uncertainty.
The anticipated rise in deal volume is expected to bring fresh challenges for law firms, particularly in handling larger workloads with efficiency while maintaining high-quality legal services that foster both new and repeat business. Furthermore, upcoming regulatory changes are likely to increase operating costs for employers. To remain competitive and take advantage of this growth trend despite rising costs, law firms need to adopt technology-driven solutions that deliver genuine efficiency improvements.
The true test for law firms isn’t merely managing the workload spike but transforming to thrive within it. Firms that adopt cutting-edge legal technology to optimize workflows, enhance collaboration, and eliminate inefficiencies in non-billable tasks are redefining what it means to lead in this dynamic landscape.
Anticipating Growth: Transactional Deal Volume Poised for Increase in 2025
Industry data supports the expected deal activity increase. In a US-based survey by Dykema, 70% of respondents said they expect the M&A market to strengthen in the coming months. Improved economic conditions, pent-up demand for deals, and the conclusion of a large wave of global elections are driving this trend.
UK-based PE deals are anticipated to increase as well. A poll of senior private equity professionals found significantly increased interest in public-to-private deals, with 26% of respondents viewing public assets as their main pipeline focus—a 12% increase compared to 2023.
The transactional boom brings significant opportunities for law firms to grow their client base and boost revenue. However, it also exposes operational inefficiencies that can lead to burnout, intensifying mental health challenges and disrupting teams that are already struggling to keep up. Outdated workflows, manual processes, and disconnected communication systems make it increasingly difficult to meet the demands of a busier market. Firms that are unprepared for this rapid growth risk being overwhelmed by the pace and scale of the workload.
Why Embracing Technology is a Must for Today's Law Firms
In addition to increased deal volume, clients are becoming more discerning when selecting legal partners—firms that demonstrate efficiency, transparency, and innovative utilization of technology are landing more clientele than those who are remaining focused on more pen-and-paper styles of operation.
Thomson Reuters reports that 48% of legal departments plan to shift work and will assess the use of “appropriate technologies” during their selection process. Notably, one in five corporate legal departments now consider technology a mandatory criterion for RFP selection. A 2024 survey found that nearly two-thirds of corporate UK legal departments had a favorable view of the impact of generative AI, a slightly brighter perspective than law firms reported. If this trend continues, law firms risk being left behind as their clients evolve past them.
In this competitive environment, firms that can showcase their use of advanced tools like transaction management software gain a distinct edge. Embracing technology not only declares a firm's commitment to innovation but also provides tangible benefits: faster deal execution, less risk, and cost savings.
RFP processes aren’t the only workflows that are changing—20% of legal departments plan to move transactional work in-house or to lower-cost providers. Increasing numbers of companies and law firms hoping to reduce costs have already made their way to DealCloser.
Further complicating the market, increases in Employers’ National Insurance Contributions (NICs) will go into effect at the beginning of April. Anticipating wage freezes, job market slowdown and employment losses, and the potential for increased inflation will heavily influence business costs and the need for operational efficiency in 2025.
Transaction management software is a trusted solution for firms gearing up for higher deal volumes while striving to cut costs and boost efficiency. By automating critical aspects of transactional work, time spent on manual tasks is reduced, enabling lawyers to concentrate on achieving the best outcomes for their clients. Collaboration is streamlined through features such as closing checklists, automatic compilation of signature pages and packets, and rapid creation of closing sets—all of which help significantly reduce write-offs and accelerate deal velocity.
Preparing for the Future: The Role of Transaction Management Software in Law Firms
Optimized internal collaboration is a hallmark benefit of transaction management software. With modern-day working environments often hybrid or remote and teams spread across oceans and time zones, keeping deals on track can be tedious. 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. The tech facilitates seamless communication, better organization, faster decision-making, and improved accuracy across deal teams.
Operational efficiency is also drastically improved by transaction management software, enabling law firms to deliver faster results to clients while accelerating their billing cycles. Firms can shorten deal timelines significantly by automating document assembly, expediting document execution, and other traditionally time-consuming processes. This improved workflow 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 early adopter of this technology reported that the efficiency gains allow their firm to deliver closing sets and bills when people are still excited about their transactions. With the speed and precision 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 takes on more clients and closes more deals—as much as doubling their deal volume.
Achieving Rapid Success with Maximum ROI
As 2025 takes hold, law firms face both opportunity and challenge. Surges in deal volume will push firms to discover how to efficiently manage larger workloads, meet client expectations, and stay competitive. Transaction management software delivers immediate benefits with a high return on investment.
By accelerating deal execution and billing, transaction management software enables law firms to handle rising demand while positioning themselves as market leaders. For firms that are planning ahead, investing in technology is a strategic move that offers both short-term gains and long-term growth.
Additionally, it’s possible for firms to leverage this opportunity while balancing risk. By selecting a technology that allows for a modular approach, firms have space to start small. They can automate one or two aspects of deal management—like Mercury-compliant signature management and closing bible creation—creating 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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