Law Firm Warning Signs

As December ends and January dawns, report cards on the legal profession are issued and crystal balls are studied. This year is no different with many articles offering assessments of the industry’s current state and its prospects.

Two pieces recently written about the industry’s present and the future are worth review. Mark A. Cohen’s Something’s

As the calendar year comes to a close, there is a lot to do at most law firms. Activities like collecting bills, distributing profits and casting next year’s budget can occupy many a leadership team. The tasks at hand can be time consuming and all engrossing. Given the importance of these short-term issues, thinking about

Hope is the denial of reality – Margaret Weis

As a law firm in decline continues to struggle, there are two primary scenarios in which denial furthers the rate, or degree, of decline:

  • undervaluing the risk associated with a significant undertaking; or
  • disregarding mounting evidence of decline.

Denying the Risk Associated With

Recent commentary on trends among law firms has highlighted the increasing popularity of requiring greater capital contributions from owners. As‘s Nell Gluckman notes, instead of capital requirements in the 20-25% range as was common for years, law firms more frequently are jacking up the owner capital requirements into the 30-35% level. In some

The American Lawyer article about recent attrition at Kirkland & Ellis gained attention in no small part because Kirkland’s reputation for success runs counter to the idea that people want to leave. While departures from even the most successful firms is inevitable, the depth of attrition at Kirkland reported by The American Lawyer was surprising.

In a newly posted piece, Casey Sullivan‘s Law Firm Mergers Reach Highest Point in Nearly a Decade reports that 2016 is to be yet another record year for law firm mergers.   As the cascade of announcements show (as well as the Altman Weil research compiled in its Mergerline), merger as a law firm

FocusDentons and McKenna Long recently announced the intent to merge.  Media reporting of the merger was substantial, including an April 8, 2015 article written by Sara Randazzo in The Wall Street Journal.   In her Dentons, McKenna Long to Merge, Ms. Randazzo quoted Denton’s global chairman Joseph Andrew as stating, “[O]ur goal was not

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,