TROUBLE IN LAW FIRM LAND
If you start reading between the lines, more and more law firms are facing serious viability issues. In today's WSJ, there is an article on law firms asking its partners to make capital contributions to firms because of poor performance last year that is carrying over to this year.
Over the past 10 years, top law firms have been in a race to grow larger and larger. Much of the growth was fueled, by yes you guessed it, cheap credit. Add to the race to grow, the intense competition to attract top law students with ever increasing salaries and the seeds for disaster were planted. It looks like more and more law firms are facing issues and lenders, landlords and partners are staring at losses.
This piece from Bruce MacEwen lays out some good comments on the issues law firms are facing. It is worth the read.
Cheers, Mike
Thursday, January 29, 2009
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Kill the lawyers.
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