Home

Report Reveals 2009 Not So Bad for BigLaw
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

BigLaw appears to have weathered 2009’s tough economic climate in decent order, according to a report issued this week by the Zeughauser Group. A survey of 52 of the AM Law 100 law firms that have released their 2009 financials showed gross revenue fell an average of 3.8 percent last year and profits per equity partner decreased by just 0.8 percent.

As noted in the report, although it’s a small sample, the results are substantially better than most analysts had predicted.

“The combination of the relatively soft drop in PPEP and 3.8 percent drop in (gross revenue) indicates that many of the firm’s managed to produce better-than-expected PPEP by cutting costs deeply, principally by reducing headcount. Notably, some firms are bringing on first-year- associates whose start dates had been deferred earlier than expected,” the report said.

  
What
Where


It goes on to state that the lateral market is entering “a state of hyperactivity” because of “inexorable pressure to grow the top line in the face of continued rate pressure.”

The report also touches on the narrowing profitability gap between the biggest law firms and the rest of the market. It notes the gap has closed the past two years, but it likely isn’t sustainable in the long-term.

“We believe this is a temporary phenomenon, and that the top firms will resume their pace-setting profitability trajectory as the economy strengthens,” the report notes.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




While BigLaw appears to have weathered last year’s economic storm, the study warns circumstances are likely to remain difficult.

“Market conditions are forcing firms that had two consecutive years of weak performance to take a fast and sharp knife to expenses, including continuing to counsel out chronically under-performing lawyers at all levels,” the report reads. “Under-performing non-equity partners will continue to be at risk through 2010. Firms in the lateral market need to place greater emphasis on vetting laterals than ever before.”





 

RELEVANT JOBS

National Firm seeks seasoned Corporate M&A partner in Austin with Big Law experience

USA-TX-Austin

Culhane Meadows PLLC, one of the largest non-traditional (remote-workplace) law firms in the country...

Apply now

National Firm seeks seasoned Corporate M&A partner in Houston with Big Law experience

USA-TX-Houston

Culhane Meadows PLLC, one of the largest non-traditional (remote-workplace) law firms in the country...

Apply now

National Firm seeks seasoned Corporate M&A partner in Dallas with Big Law experience

USA-TX-Dallas

Culhane Meadows PLLC, one of the largest non-traditional (remote-workplace) law firms in the country...

Apply now

Trusts and Estates Paralegal

USA-PA-Philadelphia

We are looking for a paralegal with a 4-year degree and paralegal certificate, or equivalent experie...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Litigation Associate Attorney

USA-CA-San Francisco

San Francisco office of a BCG Attorney Search Top Ranked Law Firm seeks associate attorney with 1+ y...

Apply Now

Civil Defense Litigation Attorney At Law

USA-MO-Olivette

Olivette office of our client seeks civil defense litigation attorney at law with 1-10 years of expe...

Apply Now

Labor and Employment Law Associate Attorney

USA-CA-Walnut Creek

Walnut Creek office of our client seeks labor and employment law associate attorney with 5-7 years o...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top