If you own a midsize litigation support company – whether in eDiscovery, digital forensics, trial presentation, managed review, court reporting, records retrieval or managed services – you’ve likely noticed a major shift in the market. Over the last several years, the litigation support sector has undergone a powerful consolidation wave fueled by private equity investment, the rising cost of technology, and law firms’ demand for end-to-end service providers, making it increasingly more difficult for smaller players to compete. What was once a highly fragmented industry is quickly evolving into a marketplace dominated by larger, multi-service platforms. For midsize business owners considering selling their litigation support company for the first time, understanding these trends is essential.
Why Litigation Support Is Consolidating and Why Midsize Firms Are in Demand
The current M&A environment is favorable for quality midsize litigation support firms. Buyers –especially private equity–backed platforms and strategic industry consolidators – are actively seeking companies with strong client relationships, recurring or repeatable revenue, and specialized expertise in high-value areas like eDiscovery and digital forensics.
Midsize firms sit in a strategic sweet spot: They are large enough to demonstrate operational maturity but nimble enough to integrate efficiently. For buyers, acquiring a midsize company often provides immediate revenue growth, client acquisition, and geographic expansion; deeper bench strength; or a new service line – all without needing to build those capabilities internally.
Competitive Pressure: Why Many Owners Explore a Sale
While demand from buyers is strong, the growth of national and global litigation support providers has intensified competition. Larger platforms have more resources for technology spend, automation, AI-driven workflows, sales coverage, and marketing. They can offer bundled pricing and broader service capabilities, making it tougher for independently-owned, midsize firms to maintain margins long-term.
For many owners, this widening competitive gap becomes a turning point. Selling isn’t just about exiting; it can be a strategy to secure your team’s future, give clients more robust support, and gain access to capital, infrastructure, and cross-selling opportunities that would be difficult to build alone. In a consolidating industry, joining a larger platform can actually accelerate a firm’s growth rather than limit it. An owner may also choose to stay on with the company, roll equity, and participate as an equity holder/owner in a future M&A transaction – potentially earning even more in that second transaction.
Preparing to Sell a Litigation Support Company: What Buyers Examine Closely
First-time sellers often underestimate how sophisticated diligence has become in legal tech and litigation services M&A. Buyers look far beyond top-line revenue. They want clarity, stability, and scalability.
Key areas of scrutiny include:
- Financial cleanliness and defensible margins
- Revenue quality and repeatability (especially in eDiscovery and hosted review)
- Customer concentration and contract structure
- Operational processes, SOPs, and leadership depth
- Technology stack, security posture, and information governance maturity
Strength in these areas can materially improve your valuation and expand the pool of interested buyers. Conversely, gaps can lead to price reductions, slower deal timelines, or fewer competing offers.
For owners, the most valuable time to begin preparing is months – even years – before going to market. Streamlining financials, formalizing workflows, renegotiating contracts, and articulating a clear growth story all help position your firm for a successful acquisition.
Choosing the Right Buyer in the Litigation Support M&A Market
Not all buyers are the same. Strategic acquirers may prioritize your service lines or geographic footprint, private equity buyers often focus on scalable processes and margin expansion, and financial buyers look for steady cash flow and low risk. The right fit depends on your goals: maximizing valuation, preserving legacy, protecting employees, reducing your personal involvement, or accelerating growth through capital and resources.
Working with an M&A advisor who specializes in litigation support, like Kenyon Group, can help you navigate these differences, manage negotiations, run a competitive process, and ensure you choose a partner who aligns with your long-term vision. Starting the conversation early in the process also helps position and prepare your business for sale.
Why Now Is a Critical Moment for Midsize Litigation Support Owners
The consolidation wave in litigation support shows no signs of slowing. Buyers are actively acquiring, valuations for well-prepared companies remain strong, and the industry’s need for specialized talent, stable workflows, scalability, diversified services, and regional presence continues to grow.
For midsize litigation support firm owners thinking about selling, understanding market dynamics and assessing your readiness ahead of time can make a significant difference in both valuation and deal outcomes. With the right preparation and guidance, this period of consolidation can present a rare and advantageous opportunity to secure your company’s future, protect your team, and unlock the value you’ve built over years of hard work.
So, if you’re considering a sale – or simply want a clearer picture of what your company may be worth – Kenyon Group can help you assess readiness, improve valuation, and identify the right buyers. Contact us anytime for a confidential consultation.