The economic outlook for 2003 is poor: the consumer spending boom went bust and the bulk of UK retailers experienced low or negative year-on-year sales growth during the crucial Christmas trading period; property prices are expected to plummet by as much as 20% in 2004-05; manufacturing is still in the doldrums; interest rates are uncertain; and, worst of all, there is no end in sight.
The downturn has not just affected the magic circle’s M&A practices. Law firms throughout the UK are streamlining their operations in an urgent move to try and maintain profitability and partner earnings in the face of static, or falling, revenues.
As a result, one of the key issues facing firms in 2003 will be “What price reputation?”.
