Management: Earning a crust
As partnerships, law firms retain relatively little capital to invest in growth. It is vital, therefore, that they have easy access to their most readily available source of capital - their fees. Tom Aldridge reports
For some time it has been a complaint of the legal profession that a number of their major corporate clients are dragging their heels about the payment of bills, with at least one magic circle firm delaying its profit sharing payments to partners as a consequence. With the largest firms billing up to £1bn a year in the UK alone, what appear to be small delays to payments can have a dramatic effect on cashflow and ultimately profitability.
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