Editor's comment: If it ain't broke...
"This is not a new topic. It is just becoming a bandwagon topic." I salute the above partner commentator in this week's Big Question on the business model of law, as I couldn't have put it better myself. While the recession has led to a familiar chorus of claims that the traditional partnership-based model is facing extinction, evidence for such assertions is thin in many cases and laughable in others. I'll go further: not only is there no evidence that partnerships have struggled relative to the general economy, on most logical readings the business model of commercial law firms has outperformed most other industries. That's hardly surprising. An industry built on low debt with diversified revenue streams based largely around non-discretionary spending is hardly at the sharp edge of the recession. Partner profits were down 4.3% in 2008 at top 100 US firms and will be down by more than that in the UK in 2008-09, but it still remains a highly profitable business with an earning outlook most industries would kill for right now.
This premium content is reserved for
Legal Week Subscribers.
Subscribe today and get 10% off.
A PREMIUM SUBSCRIPTION PROVIDES:
- Trusted insight, news and analysis from the UK and across the globe
- Connections to senior business lawyers within the leading law firms and legal departments
- Unique access to ALM's unrivalled, market-leading reporting in the US and Asia and cutting-edge research, including Legal Week's UK Top 50 and Global 100 rankings
- The Legal Week Daily News Alert, Editor's Highlights, and Breaking News digital newsletters and more, plus a choice of over 70 ALM newsletters
- Optimized access on all of your devices: desktop, tablet and mobile
- Complete access to the site's full archive of more than 56,000 articles
Already have an account? Sign In Now
For enterprise-wide or corporate enquiries, please contact Paul Reeves on Preeves@alm.com or call on +44 (0) 203 875 0651