KPMG’s Arizona Law Firm – A Paradigm Shift in Law Business
Mar 20, 2025
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Christian Athanasoulas, KPMG’s Global Head of International Tax and M&A Tax, discusses a pivotal shift in the legal industry following Arizona's decision to allow non-lawyer ownership of law firms. He details how KPMG Law US was established to integrate legal services with consulting, streamlining client transactions. The conversation highlights the use of technology, like AI-driven contract analysis, to enhance efficiency and compliance. Christian also explores how this model could influence legal practices across other states.
Arizona's decision to allow non-lawyer ownership of law firms represents a significant leap towards innovative business models in the U.S. legal sector.
KPMG Law, U.S. aims to provide integrated legal and advisory services, enhancing efficiency and client relationships through advanced technology and collaboration.
Deep dives
Revolutionizing Law Firm Ownership
Arizona has recently made groundbreaking changes by allowing non-lawyers to own and operate law firms, making it the first U.S. state to embrace this model. Unlike traditional practices where only licensed lawyers could own law firms and share in profits, this new structure enhances the potential for innovative business models in the legal sector. KPMG emerges as a pioneer by establishing the KPMG Law, U.S., a wholly owned entity designed to integrate legal services with other business offerings. This shift aims to address existing client pain points by providing a comprehensive suite of services, enhancing client relationships and operational efficiency.
Integrating Legal and Advisory Services
KPMG Law, U.S. intends to resolve issues related to M&A transactions by seamlessly integrating legal services with existing advisory consultations. Clients often face challenges in post-transaction integration, and the ability to provide legal, tax, and technology services under one umbrella significantly simplifies the process. For instance, KPMG can streamline the merging of vendor contracts after an acquisition, employing advanced technology to analyze overlaps and recommend harmonization strategies. This cohesive service model not only adds value but also positions KPMG as a versatile solution provider in a complex business landscape.
Building a Future-Focused Legal Practice
KPMG Law, U.S. focuses on establishing a lean team of skilled attorneys while emphasizing the integration of technology to enhance legal service delivery. By leveraging existing KPMG resources, such as advanced AI platforms and compliance structures, the legal practice aims to innovate and facilitate rapid scaling as market demands evolve. The firm is cautious in its growth strategy with an emphasis on methodical expansion, ensuring that it remains compliant with legal ethics while meeting client needs efficiently. This approach signals a transformative shift in the legal profession, promoting collaboration with traditional law firms and enhancing overall service delivery in the industry.
John is joined by Christian Athanasoulas, KPMG’s Global Head of International Tax and M&A Tax and U.S. Tax Practice Leader – Services. They discuss the groundbreaking shift in the U.S. legal industry arising from Arizona’s decision to allow non-lawyers to have ownership interests in law firms. This move aligns the U.S. with countries like the U.K. and Australia, where non-lawyers have been permitted to own law firms for years. KPMG has successfully operated legal practices in over 80 countries, but U.S. regulations previously prevented it from offering legal services alongside its consulting, tax, and advisory work. Arizona’s new rules allow KPMG to offer the non-legal services it typically offers clients together with related legal services performed by the new law firm. Previously, KPMG’s clients would have to retain law firms with no formal ties to KPMG for those services. Christian led the effort to establish KPMG Law US, a wholly owned Arizona law firm under the KPMG umbrella. KPMG Law US is an independent LLC with Arizona-licensed lawyers and a compliance officer to ensure adherence to legal ethics rules. Although owned by KPMG, the law firm maintains autonomy. It can assist clients with legal matters such as contract integration and regulatory compliance. KPMG Law US leverages its parent company’s technological advancements, including AI-driven contract analysis and process automation, to improve efficiency in the provision of legal services. The new law firm will not engage in litigation. For matters outside of Arizona, it will co-counsel with lawyers admitted in the appropriate jurisdiction. While Arizona is currently the only state permitting non-lawyer ownership of law firms, other states are exploring the possibility of passing similar laws. The creation of KPMG Law US could signal broader changes in the legal profession, potentially reshaping traditional law firm structures.