The legal landscape is poised for transformation as Donald Trump returns to the White House for another term. This new administration is expected to influence several Big Law practice areas, with mergers and acquisitions (M&A), private credit, and antitrust standing out as sectors where practitioners are particularly hopeful for growth.
Mergers and acquisitions are anticipated to become more vibrant under Trump’s leadership. A shift in the philosophy at the Department of Justice’s antitrust division, leaning towards a more laissez-faire approach, could encourage a surge in corporate M&A activities. As Bruce MacEwen, President of Adam Smith, Esq., remarked, this change might foster a more congenial environment for dealmakers by favoring settlements over blocking transactions. During the Biden administration, despite some high-profile losses in court, merger enforcement strategies led by the Department of Justice and the Federal Trade Commission had previously made M&A more cumbersome, causing some hesitancy in the market (Bloomberg Law).
Another area expected to thrive is private credit. With traditional banks facing stringent lending regulations following the Great Recession, the private credit industry has seen substantial growth, reaching a $1.7 trillion valuation. Legal experts anticipate that the demand for private credit will continue to rise, especially in sectors experiencing investments and growth under the new administration. Despite facing a challenging year in 2024, characterized by interest rate hikes and regulatory scrutiny, the resurgence of M&A could rejuvenate the private credit sector (Bloomberg Law).
Antitrust remains an intriguing area to watch. While the Trump administration is expected to allow more mergers to proceed, it also continues to scrutinize large corporations. Notably, the appointments of Gail Slater, Andrew Ferguson, and Mark Meador in key antitrust roles signal a continuation of rigorous antitrust enforcement, especially against major tech companies. Such enforcement reflects a populist conservative view that is more critical of corporate power than past Republican approaches (Bloomberg Law).
However, with Trump’s reputation for unpredictability, there are risks tied to this anticipated growth. According to Kent Zimmermann of the Zeughauser Group, the uncertainty could counteract expected demand in some legal sectors, necessitating law firms to focus on acyclical practices such as sophisticated litigation and investigations. Unforeseen policies in trade or immigration could also impact economic conditions, affecting law firms’ demand scenarios.
Despite these uncertainties, there is optimism about 2025 being a robust year for Big Law as firms adapt to the changing political and economic landscape (Bloomberg Law).