First Economic Downturn for Law Firms since 1998
In its first downbeat client advisory in 10 years, law marketer Larry Bodine (left) says Hildebrandt researchers expect new kind of economic downturn for law firms — one without the usual surges in litigation, bankruptcy or reorganization.
Bodine cites:
- The precipitous drop off in structured finance work triggered by the sub-prime mortgage crisis.
- A decline in M&A and transaction work.
- A drop-off in litigation, particularly in Texas and California, based on new federal court case filings in many areas of law.
- Work once thought to be complex, like project finance, is now viewed as routine and is priced accordingly.
- Corporate procurement departments are getting involved in hiring law firms, and demanding rate freezes or discounts.
- There were 19 reported dissolutions of law firms in the US in 2007, up from the 9 reported in 2006. “We may well see a further upturn in that number during 2008.”
FREE DOWNLOAD: 2008 Hildebrandt Client Advisory (PDF, 23 pages)
