End of Year Brings Lumps of Coal for Law Firms
Looks like most Am Law 200 firms can expect a couple of lumps of coal this Christmas. According to The Am Law Daily, global deal volume dropped by a third in 2008 and the downward spiral is expected to continue through next year. Though hostile takeover work remains strong for now, private equity-sponsored deals tanked, down by 72 percent to an all-time low.
How will the drop in deal work affect firms' bottom lines for 2008? Clearly, 2008 won't be a banner year, but firms won't know how bad it was until they complete client fee collections. Most firms typically wait until December to collect outstanding fees, often seeking payment for work performed three or six months earlier, explains the Boston Business Journal. And because of the number of M&A deals that fell through, experts expect clients to balk at fees charged for deals that never got done. Firms may find themselves writing off a larger percentage of fees than anticipated.
Posted by Carolyn Elefant on December 24, 2008 at 10:49 AM | Permalink
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