Two primary drivers for deal activity, company market valuations and overall economic conditions, are diverging more than ever. That’s creating opportunities for both law firms and their corporate clients—and challenges for others.

M&A lawyers are increasingly talking about “the winner and the losers” in the market. That’s reinforcing the need for law firms to have a diversified range of clients, including clients that are more resilient and buoyant in today’s economy, some observers say.