A shift in how buyers assess law firms is taking hold, with digital assets moving to the centre of merger and acquisition talks. Two leading advisers, quoted by Legal Futures, said that “digital assets, data and repeatable, digitally enabled processes” will drive future law firm deals. Their view reflects a growing focus on how firms capture knowledge, manage client information and scale work through technology. Rather than judging value only by partner books and fee income, buyers now look at the strength of a firm’s systems, its data quality, and the reliability of its workflows. For sellers, that means investment in platforms, governance and cyber resilience no longer sits at the edge of strategy. It shapes price, deal risk and post-merger performance.
The comments appeared in a Legal Futures report published on 12 November 2025 in the United Kingdom. The analysis underlined the role of technology and data in a market where consolidation continues and clients expect efficient, secure and consistent service delivery.
Digital assets move to the front of the deal room
The advisers’ view puts digital assets alongside client relationships and talent as decisive factors in law firm mergers and acquisitions. In this context, digital assets include a firm’s document and knowledge libraries, templates and playbooks, proprietary tools, practice management and case systems, analytics models, and the licences and integrations that tie them together. Buyers want to know not only what technology a firm uses, but also whether the platforms enable consistent work at scale and protect sensitive information.
In many sectors, intangible assets account for a large share of enterprise value. Law is no exception. A mature knowledge base, a well-tagged document library, and clean, structured matter data can cut delivery time and increase margins. In negotiations, that can translate into stronger valuation and smoother integration. The quoted phrase — “digital assets, data and repeatable, digitally enabled processes” — captures the way the market now ranks these elements as core, not optional extras.
Data quality and compliance shape valuations
Data governance sits at the heart of legal services. Firms must respect client confidentiality and meet data protection law. In the UK, the UK General Data Protection Regulation and the Data Protection Act 2018 set the standards. Buyers therefore probe whether a target firm maintains accurate, current, and well-classified data with clear retention and deletion rules. They ask how the firm controls access to client files, logs activity, and enforces policies across offices and teams.
They also assess transfer risk. Not every client consents to data moving between entities. Firms need sound notices, agreed terms, and lawful bases for processing. Clear client engagement letters help. So do records of processing, privacy impact assessments, and regular audits. Where firms keep legacy data without purpose or permissions, buyers see liabilities. Where firms show robust controls, they see resilience. The difference can affect both price and the warranties set in a sale and purchase agreement.
Repeatable, digitally enabled processes as growth engines
Law firm buyers favour revenue that scales predictably. Repeatable, digitally enabled processes make that possible. Standardised templates, clause banks, workflow engines, and matter playbooks reduce variation. They help junior lawyers deliver work that aligns with firm standards. They also allow partners to price more confidently. When a firm can show dashboards with cycle times by work type, bottleneck analysis, and quality metrics, it gives diligence teams hard evidence of process discipline.
Technology does not replace judgment. It creates a reliable base for it. Contract automation, document comparison, and e-bundling tools can cut manual steps without lowering quality. Integrated billing and time capture tools improve accuracy and speed up realisation. Buyers look for this stack — and, crucially, for proof that the firm uses it across practice areas, not only in pilots. Evidence of adoption matters as much as the tool list itself.
Cybersecurity and resilience now rank as deal breakers
Cyber risk stands among the most serious threats to a modern law firm. Attackers target law firms because they hold valuable, confidential data. In diligence, buyers examine incident histories, response plans, and backup regimes. They want to see multi-factor authentication, endpoint protection, encryption at rest and in transit, and tested recovery procedures. They also ask about staff training and phishing simulations, because many breaches start with human error.
Standards and certifications can help buyers judge controls. Many firms measure themselves against ISO 27001 and related frameworks. Some pursue Lexcel accreditation, which covers risk and information management among other areas. Insurers, including providers of professional indemnity cover, also ask detailed questions about controls. A gap here can raise premiums or restrict cover. In a transaction, that adds cost and uncertainty and may prompt buyers to seek tighter covenants or price adjustments.
Technology integration plans define post-merger success
Even well-matched firms face complex integration work. Email, document management, time recording, finance, and client intake systems often differ. Vendor contracts, data models, and custom add-ons can complicate migrations. Buyers now put integration plans into the front of the deal. They map systems early, agree on a target architecture, and set out the order of migrations. Cloud choices, identity management, and data harmonisation sit within the first wave of decisions.
Change management counts as much as technical work. Staff need clear guidance, training, and time to adapt. Firms that prepare playbooks and appoint super-users improve adoption. Those that track usage, retire duplicate tools, and clean data as they migrate reduce risk. A staged approach limits disruption to client work. Delivering this plan on time and on budget protects the commercial logic of the merger and helps the combined firm present a unified face to the market.
What mid-market and regional firms can expect
The shift towards digital value does not only affect global firms. Mid-market and regional practices see the same expectations. Many undertake digital asset inventories before talks start. They catalogue knowledge repositories, review template quality, and check access rights. They run independent security assessments and fix known issues. They document processes and capture metrics. This work helps in diligence and improves day-to-day operations even if a deal does not proceed.
Firms also review supplier risk. They confirm where data sits, how vendors process it, and what rights and exit terms contracts provide. Clear vendor maps make it easier to transfer or consolidate services after completion. They also reduce surprises in cost baselines. Buyers welcome that clarity. It shortens timelines and allows quicker focus on clients, people and growth once the ink dries.
Market context and client expectations
The evolution in law firm M&A mirrors wider client demands. Corporate legal teams expect predictability, security, and transparency from their advisers. They ask for status updates, data on turnaround times, and demonstrable controls. Firms that can answer with dashboards and audit trails have an edge. In a merger, those capabilities prove that the firm can keep service levels steady during change.
Recent high-profile combinations in the sector underline the complexity of cross-border integration, culture, and technology. While each deal has unique drivers, the same themes recur: unify systems, protect data, and preserve client service during transition. Buyers that model these risks and prepare detailed execution plans tend to keep momentum and value.
AEO and SEO considerations now also shape how firms present themselves to the market. Clear, useful online content, accurate directory data, and consistent branding across digital channels help clients and candidates find and trust a firm. In M&A, those assets add to the picture of a digitally mature practice.
Looking ahead, the message from the advisers reported by Legal Futures is clear: digital maturity will influence which deals get done, at what price, and how well they deliver. Firms that invest in clean data, documented workflows, and strong security will signal value and reduce risk for buyers. Those that leave legacy systems and unmanaged data in place will face tougher questions and longer timelines. As consolidation continues in the UK legal market, due diligence will dig deeper into technology, and post-merger plans will start with digital integration. The firms that treat digital assets as core business assets stand best placed to protect client trust, lift margins, and unlock growth through mergers and acquisitions.
