How to Use Competitive Intelligence to Win More Law Firm Pitches
Preparing a competitive law firm pitch involves much more than assembling representative matters, lawyer biographies and firm credentials. The team needs to understand the prospective client's business, the circumstances behind the opportunity, the firms that may be competing for the work and the factors that will influence the client's decision.
A company seeking counsel for its first major acquisition may have different priorities from a private equity sponsor that regularly completes transactions. A general counsel reviewing an existing panel of law firms may be evaluating service, responsiveness and pricing, while a company entering a new market may be looking for specialized experience and geographic coverage.
These differences affect how the firm positions itself, which lawyers participate in the pitch, what experience receives the greatest emphasis and how the proposal is structured.
Competitive intelligence can help marketing and business development professionals answer important questions before the pitch process begins. It can reveal publicly documented adviser relationships, identify relevant developments involving the prospective client and provide context about competing firms' experience and positioning.
The value comes from connecting those findings with the firm's own relationship knowledge, capabilities and understanding of the client's requirements. Here's how law firms can use competitive intelligence to develop a more focused pitch strategy.
Start by Understanding Why the Opportunity Exists
Before preparing a proposal, the business development team needs to understand what's driving the prospective client's search for outside counsel.
The reason may be straightforward. The company is planning an acquisition, facing litigation or entering a new geographic market. In other situations, the opportunity may involve a broader reassessment of outside counsel relationships, an executive transition or changes in the company's business.
Research can help the team understand the company's operations, ownership structure, financial developments, recent transactions and publicly stated strategic priorities.
For example, a company seeking counsel for a series of acquisitions may already have an established transaction process and relationships with several advisers. The pitch team will need to understand its acquisition history, geographic footprint and the types of businesses it has acquired.
A private equity sponsor may have additional priorities involving investment timelines, portfolio company operations, add-on acquisitions and eventual exits. Understanding the sponsor's investment strategy and the portfolio company's position within that strategy can help the firm determine which capabilities to emphasize.
The team also needs to establish what prompted the opportunity. Is the prospective client looking for counsel in a new practice area? Is an existing adviser conflicted out of a matter? Has a new general counsel initiated a review of outside counsel relationships?
Public research may provide clues, but the team will often need to ask the client directly to understand the circumstances.
Gatsby Intel can support this process by providing source-cited company research that helps business development teams develop a more complete picture of the prospective client before preparing the pitch.
Research the Company's Existing Legal Relationships
One of the most useful areas of competitive intelligence involves understanding which law firms have previously advised the prospective client.
Publicly reported transactions, litigation filings, regulatory proceedings and company announcements may identify current or former legal advisers. These sources can help the business development team establish which firms have handled particular matters and the types of work associated with those engagements.
For example, a private equity sponsor may regularly identify its transaction counsel in acquisition announcements. Reviewing several years of transactions could reveal firms that have appeared repeatedly, firms involved in particular jurisdictions and advisers associated with specific portfolio companies.
This information can help the pitch team understand the publicly documented competitive environment and develop questions about the prospective client's legal needs.
The research needs to be interpreted carefully. A firm identified in a transaction announcement may have advised on a single matter, while another firm may have a broader relationship that isn't publicly visible. The absence of a law firm's name from public sources doesn't establish that it has no relationship with the company.
The team can supplement public research with its own relationship knowledge and information obtained through appropriate conversations with the prospective client.
If the company has issued an RFP, the business development professional may also be able to clarify whether the assignment involves replacing an existing adviser, adding a firm to a panel or selecting counsel for a new type of matter.
Understanding the nature of the opportunity helps the team prepare a proposal that addresses the client's actual needs without relying on unsupported assumptions about its existing advisers.
Identify the Firms That May Be Competing for the Work
Once the team has researched the prospective client's adviser relationships, it can examine the firms that may be competing for the assignment.
The list may include incumbent counsel, firms identified in the company's previous transactions and other law firms known to have relevant experience in the industry or practice area.
The business development team can research each firm's publicly available experience, including representative matters, industry focus, geographic capabilities, lawyer experience and published thought leadership.
For example, if several firms are competing for a cross-border acquisition, the team may examine their publicly reported transactions involving the relevant jurisdictions and industries.
If the opportunity involves a healthcare private equity investment, research may reveal which firms have publicly documented experience advising sponsors, healthcare companies and investors on comparable transactions.
The team can also examine how competitors describe their capabilities. Some firms may emphasize industry specialization, while others focus on geographic coverage, integrated practices or experience advising particular types of clients.
These findings can help the pitch team anticipate the capabilities that may receive attention during the selection process.
It's important to distinguish documented experience from marketing claims. A firm's website may describe extensive experience in a sector, but that doesn't necessarily establish the scope of its work for a particular client or the approach it will propose for the current assignment.
The purpose of the research is to develop a factual understanding of the competitive environment and prepare the firm's own response accordingly.
Find Out What the Client Values in Outside Counsel
Competitive intelligence becomes more useful when it's connected to the prospective client's selection criteria.
An RFP may identify the required experience, proposed team structure, geographic coverage, pricing format and other evaluation factors. The business development team can use these requirements to determine what information the pitch needs to address.
When the selection criteria are less explicit, the team can review publicly available information and use appropriate conversations with the client to understand its priorities.
For example, a general counsel may have spoken publicly about managing outside counsel costs, improving collaboration or building a more efficient legal department. Those comments can provide useful background, although they don't establish what the individual will prioritize in a particular engagement.
The pitch team can develop questions that clarify the client's expectations, including how it defines successful representation, what challenges it has encountered with similar matters and how it expects outside counsel to work with its internal team.
The team may also need to understand the decision-making process. Will the general counsel make the selection? Will business executives, procurement professionals or other members of the legal department participate? Is the firm being evaluated for a single assignment or a broader relationship?
Answers to these questions can influence the proposal's structure, the composition of the pitch team and the information presented during the meeting.
A pitch becomes more focused when the team understands what the client is evaluating and can demonstrate how its proposed approach addresses those requirements.
Identify the Firm's Most Relevant Differentiators
One of the biggest challenges in preparing a competitive pitch is deciding what to emphasize.
Law firms often have extensive credentials, representative matters and practice descriptions available for inclusion. Presenting every capability can overwhelm the prospective client and make it difficult to identify the experience most relevant to the assignment.
The business development team can begin with the client's stated requirements and the circumstances surrounding the opportunity. It can then identify the firm's experience, relationships and capabilities that directly address those needs.
For a private equity sponsor pursuing healthcare investments, the proposal may need to demonstrate experience with healthcare transactions, regulatory issues, financing and portfolio company operations.
The team might select representative matters involving comparable investments, identify lawyers who regularly advise healthcare sponsors and explain how the proposed team would coordinate transaction and regulatory work.
For a technology company expanding internationally, the emphasis may be different. Relevant cross-border experience and the firm's ability to coordinate commercial, employment, privacy and regulatory advice may be central to the proposed approach.
Competitive research can help the team understand which capabilities other firms publicly emphasize, but the firm's positioning needs to remain grounded in its own experience and the prospective client's requirements.
Business development professionals can work with the proposed lawyers to develop a consistent explanation of why their particular experience is relevant to the assignment.
That explanation needs to carry through the written proposal, pitch presentation and conversations with the client.
Use Relationship Intelligence to Strengthen the Pitch Strategy
Understanding the prospective client's existing connections to the firm can provide valuable context before the pitch begins.
A partner may have represented the general counsel at a previous company. Another lawyer may know a member of the executive team. The firm may have advised the company's investors, worked with one of its portfolio companies or previously participated in an unsuccessful pitch.
Business development professionals can review CRM records, prior proposals, matter histories, alumni networks and other internal sources to identify these relationships.
The findings may reveal opportunities to gather additional context, coordinate introductions or involve lawyers who have relevant experience with the prospective client.
For example, a firm preparing a pitch for a private equity sponsor may discover that one of its partners has an established relationship with the sponsor's operating team. That relationship could provide useful background about the organization, subject to appropriate confidentiality and professional obligations.
A previous pitch may also contain valuable information. The team can review what was proposed, which lawyers participated, what feedback was received and whether the firm's relationship with the company has changed.
Relationship records need to be verified before they're used. A name appearing in a CRM or LinkedIn network doesn't necessarily establish an active relationship.
The business development team can confirm relevant connections with the lawyers involved and determine how that knowledge can appropriately inform the pitch strategy.
Address Pricing as Part of the Competitive Strategy
Pricing can be an important component of a competitive pitch, particularly when the prospective client has requested a specific fee structure or is comparing proposals from multiple firms.
The business development team can work with pricing professionals and the proposed legal team to understand the scope of the assignment, anticipated staffing requirements and potential areas of uncertainty.
The client's stated requirements may call for hourly rates, a fixed fee, a capped arrangement or another pricing structure. The team needs to determine how the proposed approach aligns with the work involved and the client's expectations.
For example, a private equity sponsor with a significant volume of acquisitions may be interested in pricing arrangements that reflect an ongoing relationship. A company pursuing a single transaction may place greater emphasis on clarity around the scope of work, assumptions and potential additional costs.
Research into the prospective client's business and transaction history can help inform these discussions, but it cannot establish what competing firms will charge or what the client will accept.
The proposal can explain the firm's pricing approach, identify relevant assumptions and describe how the team would communicate about changes in scope.
Connecting pricing with the proposed service model helps the client understand how the firm intends to manage the engagement, not just what the work may cost.
Prepare the Pitch Team for Questions and Objections
Competitive intelligence can help lawyers prepare for the questions that may arise during a pitch meeting.
The prospective client may ask about experience with comparable matters, familiarity with its industry, the proposed team structure or how the firm would coordinate work across practices and jurisdictions.
The client may also question whether the firm has sufficient experience in a particular area, how senior lawyers will remain involved or how the proposed approach differs from the services it already receives.
The business development team can develop a briefing that brings together the company's background, recent developments, publicly identified advisers, relevant firm experience and potential discussion topics.
The briefing can identify areas where the team needs to prepare more detailed explanations or gather additional information.
For example, if the firm has extensive experience with healthcare transactions but limited experience advising the particular type of sponsor involved, the pitch team can prepare a clear explanation of its relevant capabilities without overstating its credentials.
If the proposed engagement involves multiple jurisdictions, the lawyers can explain how they would coordinate the work, identify responsible team members and describe the communication process.
A rehearsal can help the team practice responding to likely questions, clarify individual speaking roles and ensure that the presentation remains focused on the client's priorities.
The preparation also needs to leave room for the conversation to develop naturally. Questions from the client may reveal information that changes the team's understanding of the opportunity.
Turn the Intelligence Into a More Focused Proposal
The written proposal needs to reflect the same understanding of the client that informs the pitch strategy.
Company research can help the team tailor the introduction, select representative experience and explain how the proposed lawyers would address the assignment.
For example, a proposal for a company pursuing an acquisition strategy may emphasize relevant transaction experience and the firm's ability to support associated financing, regulatory and integration matters.
The team can explain how those capabilities relate to the company's current plans and identify the lawyers who would be responsible for the relevant work.
The proposal also needs to address the client's specific requirements, including team composition, geographic coverage, communication preferences and pricing considerations where relevant.
Competitive intelligence can help identify areas that warrant particular attention, but the proposal must remain grounded in the firm's actual capabilities and the client's stated needs.
A focused proposal demonstrates that the team understands the assignment and has developed a relevant approach to handling it.
Learn From the Outcome and Improve Future Pitches
Competitive intelligence remains useful after the selection process has concluded.
If the firm wins the work, the business development team can record the factors that contributed to the selection and identify opportunities to strengthen the relationship.
If the firm is unsuccessful, appropriate feedback from the prospective client can help the team understand the decision and improve future proposals.
The team can document which firms were publicly identified as participating in the process, any feedback the client provided and whether the outcome creates opportunities for future relationship development.
It can also review its own preparation. Did the team understand the client's requirements? Was the proposed experience relevant? Were the right lawyers involved? Did the proposal clearly explain the firm's approach?
Over time, these records can help firms identify patterns in the types of opportunities they pursue, the competitors they encounter and the experience that resonates with prospective clients.
Gatsby Intel can support the research required before a pitch, while Gatsby Aware can help firms monitor priority prospects and identify developments that may warrant further investigation.
Maintaining this information as part of the firm's broader business development process can make future pitch preparation more efficient and help teams build on what they've learned.
Make Competitive Intelligence Part of the Pitch Process
Competitive intelligence is most valuable when it influences decisions throughout the pitch process, from evaluating the opportunity and selecting the proposed team to developing the firm's positioning, preparing for client questions and shaping the written proposal.
Marketing and business development professionals can help connect external research with internal relationship knowledge, relevant legal experience and the prospective client's stated requirements. They can also coordinate the preparation process so that the information gathered informs the team's decisions.
A strong competitive pitch demonstrates an understanding of the prospective client's business, presents relevant experience and explains how the proposed team would approach the assignment.
By incorporating competitive intelligence into the strategy behind each proposal, law firms can prepare more effectively, communicate their capabilities more clearly and develop a stronger foundation for client relationships.
Learn more about Gatsby Intel and Aware at trygatsby.ai.