Cold Feet: MegaFirm Calls Off Merger Talks
It looks as if the current economic climate is impacting more than year-end bonuses and head-counts. One would think, however, that, in more difficult economic times, unless the other partner is in serious difficulty, it would be better to join forces and gain from the synergy than go it alone. Thus, there must be more to this story than has been reported thus far.
Monday, December 8, 2008
lawjobs.com Career Center - Three Ways to Save Big Firms
lawjobs.com Career Center - Three Ways to Save Big Firms
This article states the problems of the current situation for large firms very well and then posits three conclusions:
1. Abolish the distinction between partners and associates;
2. Outside investment in law firms as is already permitted in England and Australia; and
3. Have meaningful covenants not to compete.
All of these conclusions deserve further study and comment, which will come in due course.
This article states the problems of the current situation for large firms very well and then posits three conclusions:
1. Abolish the distinction between partners and associates;
2. Outside investment in law firms as is already permitted in England and Australia; and
3. Have meaningful covenants not to compete.
All of these conclusions deserve further study and comment, which will come in due course.
Wednesday, December 3, 2008
Law.com - White & Case to Undergo Major Reorganization
Law.com - White & Case to Undergo Major Reorganization
The subtitle of this article could be "Global, but not Integrated." But that is now all going to change for W&C it seems. There are some very interesting cross-currents here. The regional structure still leaves open the question of how integrated the individual offices will be, even if they might be better integrated with the other offices in the region. Will the offices in the various regions be integrated with the offices in the other regions, and, if so, how? On the other side is the client team concept, which, at least for the five clients involved, should integrate the entire firm and all its offices behind the needs of the specific clients involved. This structure bears some watching to see how well it plays out and whether it really solves the problems inherent in having a firm with many far flung offices that are essentially independent of one another.
The subtitle of this article could be "Global, but not Integrated." But that is now all going to change for W&C it seems. There are some very interesting cross-currents here. The regional structure still leaves open the question of how integrated the individual offices will be, even if they might be better integrated with the other offices in the region. Will the offices in the various regions be integrated with the offices in the other regions, and, if so, how? On the other side is the client team concept, which, at least for the five clients involved, should integrate the entire firm and all its offices behind the needs of the specific clients involved. This structure bears some watching to see how well it plays out and whether it really solves the problems inherent in having a firm with many far flung offices that are essentially independent of one another.
Tuesday, December 2, 2008
DLA Piper Reviews 40 U.K. Jobs in Redundancy Consultation
DLA Piper Reviews 40 U.K. Jobs in Redundancy Consultation
This looks like the usual suspects in the current market situation, real estate and finance. It looks as if the economic malaise is clearly settling in in most of the major jurisdictions around the world and not just in the major centers, such as New York and London. I suppose this is not surprising taking into account yesterday's news that we have been in a recession for almost a year now. That has to be taking its toll everywhere, not just in the major centers.
This looks like the usual suspects in the current market situation, real estate and finance. It looks as if the economic malaise is clearly settling in in most of the major jurisdictions around the world and not just in the major centers, such as New York and London. I suppose this is not surprising taking into account yesterday's news that we have been in a recession for almost a year now. That has to be taking its toll everywhere, not just in the major centers.
Wednesday, November 26, 2008
Legal Blog Watch
Legal Blog Watch: "Pressure to Cut Costs Drives More Work to India"
The statistics in this article are grim, if you are a US based major law firm. I am reminded of the 2008 Presidential Summit at the Annual Meeting of the New York State Bar Association. One of my co-panelists, Mary C. Daly, the Dean of St. John's Law School in Jamaica, New York, who, unhappily passed away a few days ago, emphatically said, to the surprise of many in the audience, that no serious law firm could ignore outsourcing more routine legal work to India. There were some caveats, of course, but the need to cut costs would drive the process she said. Now we are talking about the loss of 35,000 legal jobs within the span of a bit more than a year and 79,000 in a bit more than six years. I think this is even faster than Dean Daly envisioned.
The statistics in this article are grim, if you are a US based major law firm. I am reminded of the 2008 Presidential Summit at the Annual Meeting of the New York State Bar Association. One of my co-panelists, Mary C. Daly, the Dean of St. John's Law School in Jamaica, New York, who, unhappily passed away a few days ago, emphatically said, to the surprise of many in the audience, that no serious law firm could ignore outsourcing more routine legal work to India. There were some caveats, of course, but the need to cut costs would drive the process she said. Now we are talking about the loss of 35,000 legal jobs within the span of a bit more than a year and 79,000 in a bit more than six years. I think this is even faster than Dean Daly envisioned.
Monday, November 24, 2008
Law.com - Some Glimmers of Sunshine for Law Firms, Say Citi Experts
Law.com - Some Glimmers of Sunshine for Law Firms, Say Citi Experts
This is an article that requires some careful study and analysis. A look at the underlying data might also be necessary to do that properly. Aside from indicating that there might be some pain coming, it is interesting to note that firms with more than 25% of their lawyers abroad (note Nixon Peabody's recently announced objective) seem to be weathering the storm without too much difficulty. However, large New York based firms and firms with a lesser foreign presence seem to be bearing a much heavier burden. I continue to wonder how long overseas offices are going to be an economic benefit in these uncertain economic times.
This is an article that requires some careful study and analysis. A look at the underlying data might also be necessary to do that properly. Aside from indicating that there might be some pain coming, it is interesting to note that firms with more than 25% of their lawyers abroad (note Nixon Peabody's recently announced objective) seem to be weathering the storm without too much difficulty. However, large New York based firms and firms with a lesser foreign presence seem to be bearing a much heavier burden. I continue to wonder how long overseas offices are going to be an economic benefit in these uncertain economic times.
Sunday, November 23, 2008
Anarchy in the UK: More Layoffs Coming
Anarchy in the UK: More Layoffs Coming
Do you get the feeling that this is only the tip of the iceberg? Regrettably, the onset of the current economic uncertainties was very swift. As these uncertainties ripple through all business sectors, it is hard not to imagine they are also going to hit the practice of law at all levels. Weaker practices will probably feel it first, but all most certainly will. Those practices that prepare for the inevitable will no doubt attract more attention as they do so, but, in the long run, they will be stronger for it and will survive better.
Do you get the feeling that this is only the tip of the iceberg? Regrettably, the onset of the current economic uncertainties was very swift. As these uncertainties ripple through all business sectors, it is hard not to imagine they are also going to hit the practice of law at all levels. Weaker practices will probably feel it first, but all most certainly will. Those practices that prepare for the inevitable will no doubt attract more attention as they do so, but, in the long run, they will be stronger for it and will survive better.
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