At year’s end, white-shoe law firms race to collect the bulk of the year’s client fees by the end of December.
This year is different though, with a number of law firm managing partners worried that the current recession will make the job of collection even tougher.
Most law firms bill every three months, or even every six months, which is why the payments take so long to come through. Law firms typically use traditional methods of collection, such as calling clients and reminding them to pay with the partner involved often making the phone calls.
Many merger and acquisition deals fell through in Wall Street’s downfall, which makes it likely that some clients will balk at high fees for deals that never got done.
— Martine Beerman