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Once seen as a fast-track route to growth, mergers and acquisitions (M&A) are rapidly losing their appeal among small and medium-sized law firms. According to The Bellwether Report 2025, the appetite for M&A has dropped to its lowest level in years—with just 5% of respondents considering it a viable growth strategy. That figure has more than halved since 2023.

What’s behind this shift? The short answer: risk, complexity, and a renewed focus on cultural cohesion. But the full story reflects deeper strategic changes in the small law market—where the desire for control, agility and long-term resilience is outweighing the lure of rapid expansion.

The numbers: a clear downward trend

The data from this year’s Bellwether Report is striking:

• In 2023, 13% of firms said they were considering M&A as a growth strategy.

• That fell to 10% in 2024.

• In 2025, it’s just 5%.

This steady decline suggests more than just short-term caution. It points to a long-term re-evaluation of what growth should look like in today’s legal environment.

Other studies have found similar results.  found M&A activity among law firms has slowed as market volatility and integration challenges prompt firms to reassess whether mergers truly deliver long-term value.

Download the Bellwether report here for full analysis.

Risk over reward

One of the biggest reasons firms are walking away from M&A is the financial risk involved. Over half (53%) of those not pursuing M&A cited this as their primary concern. In a market where overheads are already tight and margins under pressure, the cost of merging—legal fees, redundancy payments, systems integration, and leadership restructuring—can be hard to justify.

Even where long-term benefits might exist, the short-term burden is simply too high. With many firms also investing in technology, marketing and recruitment, M&A often loses out to more flexible, lower-risk options.

Merging cultures is harder than it looks

While headlines about successful law firm mergers may give the impression that it’s a clean route to growth, the reality is far more complex, especially for smaller firms where culture and personal relationships matter deeply.

Zoë Bloom, a partner at family law firm AFP Bloom, put it plainly:

“The amount of strategic thinking and effort that is necessary to successfully merge two firms cannot be underplayed.”

She continued:

“The real work comes when combining two different workplaces, management structures and leadership styles. So while a successful merger will create fast growth, organic growth can be softer, more malleable and in tune with staff needs.”

This emphasis on cultural compatibility is a recurring theme. Firms that prioritise internal cohesion and long-term stability are increasingly unwilling to compromise those values for short-term size gains.

Last year the issued a warning notice outlining the regulatory considerations and compliance requirements for law firms involved in M&A activities. The emphasises the importance of maintaining professional standards and protecting client interests during transitions. A which referenced the SRA warning founmany law firms underestimate the operational disruption and cultural mismatch that often follow a merger.

Organic growth is winning the argument

This year, 72% of firms said they plan to grow organically—a sharp increase from 63% in 2024 and just 40% in 2023. It’s clear that many small firms are turning inward, focusing on improving operations, building client relationships, and strengthening their team before expanding their footprint.

In this context, M&A can seem like a distraction. Instead of absorbing another firm’s people, systems and processes, many leaders are opting to invest in the foundations they already have.

Organic growth offers more than just control—it offers consistency. And in a market where clients increasingly value responsiveness, transparency and direct access to senior lawyers, that consistency matters.

A decade of mergers and a change in mindset

Over the past ten years, the small law sector saw waves of M&A activity, often driven by the desire to pace in the market as firms sought to scale quickly in response to market pressures. But that trend appears to have peaked.

With fewer high-profile mergers hitting the headlines, the perceived prestige of M&A is fading. Instead, firms are returning to tried and tested strategies—improving service quality, specialising in niche areas, investing in people and systems, and deepening client relationships.

In the words of Ben Giaretta of Fox Williams:

“Over the last decade many firms have been driven to merge by a desire to ‘keep up with the Joneses’. But with fewer high-profile mergers hitting the press, firms have reverted to their tried and trusted strategies for growth.”

Not gone, but no longer default

This isn’t to say that M&A is disappearing entirely from the legal landscape. For some firms, particularly those looking to gain access to new markets, talent, or practice areas, it may still make sense. But what’s changed is the default mindset.

M&A is no longer seen as the inevitable or most desirable route to growth. Instead, it’s becoming what it always should have been: one option among many, weighed carefully against cultural, operational, and financial priorities.

The decline of M&A in small law is a reflection of a broader shift toward sustainable, self-directed growth. Firms are moving away from headline-grabbing expansion plans and toward more deliberate, strategic choices.

In today’s environment, growth doesn’t have to mean upheaval. And for many small firms, that’s a welcome change.