Here’s yet another report about the overall sluggish marketplace for legal services for even the largest US-based law firms. It’s a buyer’s market, and corporate clients are taking advantage as they work to reign in their spend on outside counsel. We think this long-term market trend has positive implications for smaller and mid-size law firms who find themselves in the position to provide a much more attractive “value proposition” than BigLaw. Here are few highlights of this week’s article:
- Overall growth among the AmLaw 100 firms was anemic in 2015, slowing to its lowest level since the Great Recession in 2008. Indicators aren’t predicting an uptick anytime soon.
- Within the AmLaw 100 firms, the top 28 firms – They use the term “Super Rich.” – are distancing themselves from the rest of the pack when it comes to financial performance with Revenue per Lawyer (RPL) or at least $1 million and Profit per Partner (PPP) of at least $2 million.
- By any measure, Wachtell stands apart from the crowd. With just 261 lawyers, its PPP stands at an eye-popping $6.6 million. That’s $2 million more than second-place Quinn Emanual at $4.4 million.
- The sharpest declines in financial performance in 2015 were seen at Arnold & Porter, Baker & McKenzie, Hunton & Williams and K&L Gates.
As we like to say at MPF, bigger is not always better.