Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Partner Defections, Mergers and the Changing Business Model for Law Firms
Partner Defection
Partner defection often occurs due to the lack of support partners receive from the firm's management. And in a 2012 ALM Intelligence survey of attorneys who lateraled to a new firm, 48% of them were not partners when leaving but became partners within three years. It appears to be caused as much by poor management and professional development offerings, as it does an increase in compensation. In fact, this was confirmed by their 2014 survey where 42% indicated one of the primary reasons they left their firm was the 'firm culture.'
From the new firm's perspective, they are often disappointed with the transfer because the anticipated revenue stream does not occur. Here again it is firm management at fault for not doing sufficient due diligence on the promised book of business.
Mergers
Where larger firms move into a new market by merging with a smaller firm, raising billing rates often loses long-term clients of the smaller firm. Where large firms merge with large firms, client conflicts are often the major concern and become the most common 'given' reason for a proposed merger's failure. One critical point often overlooked in merger discussions is how the same practice areas for both firms merge, both in practice and in business development. This should be clearly resolved and decided before the merger, to prevent further defections.
Changing Business Models for Law Firms
Since the big economic hits began in 2007-08, law firms have done the obvious by reducing some overhead and increased the ratio of support staff to attorneys (i.e., more attorneys to one legal assistant). Some smart firms have brought in 4-7 year associates who can produce billing and client value immediately, instead of training law school graduates. A few have even changed their bonus structures to require successful business development efforts in order to receive a percentage of the bonus.'
But for many, they are still burdened by decision-making structures that are either consensus- or collegial-based. Decisions often take too long. And there is a real absence of long-range business planning, assessing their market places, practice area growth, etc. They seem to have copied the reduction side from corporate businesses but have failed to undertake the necessary analysis and focused decisions for their future.
Read more at www.ownthezonebook.com
Partner Defection
Partner defection often occurs due to the lack of support partners receive from the firm's management. And in a 2012 ALM Intelligence survey of attorneys who lateraled to a new firm, 48% of them were not partners when leaving but became partners within three years. It appears to be caused as much by poor management and professional development offerings, as it does an increase in compensation. In fact, this was confirmed by their 2014 survey where 42% indicated one of the primary reasons they left their firm was the 'firm culture.'
From the new firm's perspective, they are often disappointed with the transfer because the anticipated revenue stream does not occur. Here again it is firm management at fault for not doing sufficient due diligence on the promised book of business.
Mergers
Where larger firms move into a new market by merging with a smaller firm, raising billing rates often loses long-term clients of the smaller firm. Where large firms merge with large firms, client conflicts are often the major concern and become the most common 'given' reason for a proposed merger's failure. One critical point often overlooked in merger discussions is how the same practice areas for both firms merge, both in practice and in business development. This should be clearly resolved and decided before the merger, to prevent further defections.
Changing Business Models for Law Firms
Since the big economic hits began in 2007-08, law firms have done the obvious by reducing some overhead and increased the ratio of support staff to attorneys (i.e., more attorneys to one legal assistant). Some smart firms have brought in 4-7 year associates who can produce billing and client value immediately, instead of training law school graduates. A few have even changed their bonus structures to require successful business development efforts in order to receive a percentage of the bonus.'
But for many, they are still burdened by decision-making structures that are either consensus- or collegial-based. Decisions often take too long. And there is a real absence of long-range business planning, assessing their market places, practice area growth, etc. They seem to have copied the reduction side from corporate businesses but have failed to undertake the necessary analysis and focused decisions for their future.
Read more at www.ownthezonebook.com
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Stranger to the Deed Rule
In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.