(J. Albert Diaz)
Holland & Knight experienced another solid year in 2013, reporting a 5 percent increase in gross revenue and an 8 percent boost in profit per partner.
The Miami-based law firm reported gross revenue of $627 million in 2013, up from $598 million in 2012. Net income was up 7 percent to $175 million from $164 million for a 28 percent profit margin. Profit per partner rose to $1.03 million from $950,000.
In 2012, by comparison, the firm’s gross revenue jumped 5 percent and profit per partner by 7 percent.
Total compensation paid to 347 non-equity partners rose 5 percent to $139 million. Average partner compensation was up 6 percent to $605,000.
The lawyer headcount at one of Florida’s largest law firms rose 3 percent to 956 from 926. The firm lost three equity partners to finish the year with 170 and gained two non-equity partners to increase to 347.
Revenue per lawyer was up 2 percent to $655,000 from $645,000.
Holland & Knight managing partner Steven Sonberg, who was recently re-elected to another five-year term, said he was pleased with the firm’s performance this year.
“We continued to remain well-connected to our clients,” Sonberg said. “We really do a pretty good job of understanding what their needs are and being responsive to those, both financially and strategically.”
Sonberg attributed the increase in gross revenue and the $10,000-per-lawyer revenue boost to additional lawyers—with the opening of offices in Dallas and Mexico City—and lawyers working harder. The Dallas office is now up to 26 lawyers and Mexico City, 16.
“People worked a little bit harder,” Sonberg said. “We try and manage our headcount and be sensitive to the changing demands of the legal industry.”
Holland & Knight is looking to add an additional office in Houston this year to accommodate its growing energy practice, and the firm could hit the 1,000-lawyer mark by next year, Sonberg said.
“We continue to view the United States as our primary focus,” he said. “Now that we are in Dallas, we will look at other markets as well, which have become strategic to us.”
Bill Brennan, a law firm consultant with Brennan Strategy LLC in Philadelphia, praised Holland & Knight for its ability to remain profitable by increasing its revenue while reducing its number of equity partners.
“This is a fascinating example of a law firm that is effective in managing its profitability,” he said. “The increased revenue and all the profits it generated were shared by a smaller number of equity partners, resulting in a big jump in net income per partner.”
Holland & Knight has 22 offices throughout the world.