The Global Mobility Series: Axel Koelsch on Building World-Class Law Firms
Welcome back to The Global Mobility Series, where we dive deep into the minds of industry leaders shaping the future of professional services. In this episode, Bruce Mennell sits down with the dynamic Axel Koelsch, COO at Lawfront. With an impressive background spanning law, strategy, and private equity, Axel shares his approach to transforming law firms into sustainable, high-performing businesses.
Whether you’re interested in law firm acquisitions or the evolving role of technology in professional services, Axel brings a fresh perspective on how modern law firms can thrive. Let’s unpack his insights!
From Legal Practitioner to Strategic Visionary
Axel’s career began with a German law degree, but he quickly realized his passion extended beyond practising law. “I was more interested in how to create organizations, create systems, and make things work better,” he reflects.
This curiosity led him into strategy consulting at McKinsey and ultimately back into the legal world, where he’s spent the last two decades shaping and optimizing law firms globally.
His role at Lawfront focuses on consolidating regional UK law firms under a private equity-backed model, creating what Axel describes as a “platform for sustainable quality and growth.”
The Three Pillars of Law Firm Success
For Axel, the essence of a thriving law firm boils down to three elements:
People: “What’s the type of environment that will attract people, develop people, and get the best career path?” Axel asks. Law firms that prioritize talent development are often the ones that win the long-term race.
Clients: Building superior client offerings and managing client relationships effectively are key. Axel notes, “When clients believe you’re the best to solve their big problems, pricing becomes about value, not time.”
Money: Revenue per lawyer (RPL) is a critical metric for assessing a firm’s performance. Axel emphasizes that “the quality of a law firm is often encapsulated in RPL.”
To Merge or Not to Merge?
Axel’s history with mergers and acquisitions has taught him the value of clarity and culture. He explains, “The most challenged law firms are the ones not quite sure who they want to be.” Successful mergers occur when firms have a strong cultural foundation and a clear strategy. Without these, “things break apart.”
He also offers a practical metaphor: “Think of acquisitions like buying property. Never buy a wreck—it will cost more time and money than you imagined.”
At Lawfront, the focus is on firms with “quality and culture” but with gaps that the platform can fill. “We look for an ‘us-shaped hole,’” Axel quips.
Technology as a Game-Changer
While technology can intimidate some traditional firms, Axel sees it as an opportunity. Surprisingly, he prefers acquiring firms that haven’t yet embraced technology: “When we buy a firm not that good at adopting technology, we have an immediate path to increasing profits without additional costs.”
From automation to AI, technology is reshaping professional services. “I like to compare it to architects,” Axel shares. “An architect who only produces manual drawings isn’t someone I’d work with. Technology needs to enable the delivery of value.”
Valuing Law Firms: It’s All About Profit and Quality
Valuation in the legal world isn’t straightforward, but Axel distils it into two factors:
Profitability: A high profit-per-equity-partner (PEP) signals a well-run firm.
Quality: Sustainable quality of work and strong client relationships drive higher valuation multiples.
“A well-run firm should aspire to a multiplier of four times profit,” Axel says, but cautions, “That’s after accounting for partner salaries, not just PEP.”
The Future of Legal Services
Looking ahead, Axel predicts the rise of “technology-enabled professional services.” In this vision, technology isn’t just a back-office efficiency tool—it’s central to service delivery. Axel’s analogy of architects rings true: technology isn’t replacing creativity but enhancing it.
Final Thoughts
Axel’s insights are a masterclass in balancing tradition and innovation in the legal world. His leadership at Lawfront exemplifies how strategic thinking, cultural strength, and technological integration can elevate law firms.
For more on how technology can streamline professional services, visit AORA Law.
And don’t forget to tune in to future episodes of The Global Mobility Series for more enlightening conversations with leaders like Axel Koelsch.