Fastest-Growing Legal Practice Areas in Australia 2025 | M&A, ESG & ADR Trends

Which Practice Areas Are Growing Fastest in Australia in 2025: M&A, ESG, or ADR?

As Australia's legal sector adapts to global market shifts and regulatory complexity, 2025 is revealing clear front-runners among practice areas. From cross-border deal-making to climate-related litigation, growth is being driven not by volume alone—but by the urgency of transformation.

Here’s a breakdown of the fastest-growing practice areas Mergers & Acquisitions (M&A), Environmental, Social, and Governance (ESG), and Alternative Dispute Resolution (ADR) with key insights for law firms, in-house teams, and legal talent navigating the new legal economy.

M&A: Resilient Despite Market Volatility

Despite inflationary pressures and cautious investor sentiment, Australia's M&A sector remains remarkably resilient. According to Herbert Smith Freehills’ 2025 M&A Report, 59 public M&A deals worth AUD 28 billion were completed in FY25, marking the third-highest volume of takeover bids in the last decade.

What's driving this? Mainly strategic consolidation in tech, energy, and healthcare sectors. For instance, the recent A$24 billion acquisition of AirTrunk by Blackstone sent a strong signal about renewed confidence in Australia's data infrastructure market.

Real-world challenge: Consider a regional energy firm seeking to expand its renewables footprint. Lacking in-house dealmaking expertise, they turn to external counsel for M&A structuring, FIRB approvals, and commercial due diligence, generating work for corporate teams across states.

Even Norton Rose Fulbright’s M&A Deal Trends Report confirms the upward momentum: 43 public M&A deals were announced in the first half of 2025, showing a solid pipeline for FY26.

ESG: From Strategic Value to Legal Obligation

No longer just a corporate buzzword, ESG is now a compliance imperative.

With mandatory climate-related financial disclosures set to begin in 2025, large Australian entities must report against global standards like IFRS S2. As UL’s ESG disclosure guide explains, this includes reporting on emissions, risk resilience, and sustainability governance—all requiring legal oversight.

Meanwhile, ASIC is cracking down on greenwashing, initiating enforcement actions against misleading environmental claims. Firms are now hiring lawyers not only to mitigate ESG risk, but to embed it directly into contracts, policies, and board reporting.

Scenario in practice: A listed FMCG company launches a new sustainability campaign. Months later, they’re under review for overstated emissions targets. Their in-house legal team scrambles to audit historical marketing, while external ESG counsel helps rebuild defensible reporting protocols.

Private Banker International confirms a 42% rise in ESG-related legal work in Q1 2025, particularly in disputes, governance, and disclosure alignment.

ADR: Efficient and Client-Friendly, But Not Yet Explosive

Alternative Dispute Resolution (ADR)—including arbitration, mediation, and negotiated settlements—continues to grow steadily, particularly as clients seek faster and less adversarial outcomes.

The global ADR market is projected to grow to USD 8.47 billion in 2024, with a 6.5% CAGR. In Australia, the post-pandemic backlog in courts, rising litigation costs, and increased contractual complexity are reinforcing ADR’s appeal.

Example in context: Two co-founders of a scaling fintech startup disagree on a buyout clause. Rather than escalate to litigation—which could damage their reputation—they engage in structured mediation, supported by legal counsel, and reach a resolution within weeks.

Though ADR is growing, it's not booming. According to The Australian’s legal affairs coverage, it continues to be ranked below M&A, employment, and insurance in terms of practice demand.

Broader Trends: M&A, ESG and ADR vs. Banking & Workplace Law

Interestingly, M&A and ESG aren’t the top two growth areas overall.

According to the Thomson Reuters State of the Legal Market 2025, Banking & Finance law has grown by 9.4%, and Workplace Relations law by 7.4%, outpacing both ESG and M&A.

This reflects ongoing issues like interest rate volatility, capital restructuring, and post-pandemic workplace compliance. As employers rewrite hybrid work policies and adapt to AI-related employment laws, demand for workplace legal advisory has surged.

In 2025, legal practices tied to transformation, accountability, and innovation are taking the lead. M&A remains a keystone of Australia’s corporate legal services, while ESG law has transitioned into a regulatory necessity. Meanwhile, ADR continues to be a critical tool for efficient dispute resolution, though not yet at the top of the growth curve.

To stay competitive, law firms and legal departments alike must align their service offerings with these evolving client needs—and consider how tech and talent can enable scale.

Ready to build a legal team that moves as fast as the market? Teams Squared connects law firms with vetted, remote legal professionals across ESG, M&A, litigation support, and more.

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