As we continue to see law firms fail, and dramatic efforts at restructuring continue at a heady pace, market analysts can’t help but look for a common denominator. Is there a quantifiable predictor of tomorrow’s troubled law firm?
While a number of things can push a firm into a transition mode, there seems to be
A headline from last week announced the law firm merger of Dykema with Texas’ Cox Smith. Although Michigan based Dykema already had a foothold in Texas, its merger with well-regarded Cox Smith represents a significant commitment by Dykema to its Texas strategy. The Dykema/Cox Smith combination also is further evidence that law firm mergers
As an interested observer of the legal landscape, there are three baseline realities that are especially interesting to explore:
• The rapid rate of law firm growth through mergers and lateral additions;
• The rate of law firm failures; and,
• A continuing level of unhappiness in the profession.
Given these three somewhat extreme
The century plus old quote “success begets success” couldn’t be further from the truth. Today success only buys you the opportunity to survive to compete tomorrow.
Lest you think otherwise, the legal profession is no exception. The intensity of competition in our industry increases daily. The marketplace is littered with once highly successful law
Law firm crisis can pop up at anytime during the year, but if it had a “season” it would be early on in the calendar. As I wrote in Like Divorce, Law Firm Crisis is More Likely as the New Year Starts
, the beginning of each year is when key lawyers cut and run,
As we enter the New Year, chances are good you’re dealing with a predictable slate of demands on your time: setting compensation and budgets; managing details associated with the latest departure; and interviewing this week’s lateral prospect. All important activities, and worthy of serious attention; but none of these is likely to make the
As 2014 draws to a close, there have been more than a few reports of generous associate bonuses at some well-known firms. In an industry that has had its share of challenging economic news since the Great Recession, news of these bonuses is a welcome change. While the increased bonuses are positive, especially for
As reviewed in Part One last week, the example of the Morgan Lewis/Bingham McCutchen mass lateral transaction may serve to stimulate the pursuit of distressed firms by healthy firms. Although distressed law firm transactions are nothing new, the model of that deal plus two new legal developments may foster greater distressed law firm activity.
The
Reports vary on the degree to which the business of law is recovering or improving; but few question the fact that competitive pressures are growing, thanks to:
