Law360’s Post

The significant increase in billing rates at elite law firms is about to shake things up in the legal world, making clients a bit nervous. A recent survey showed that a whopping 86% of large firms in the U.S. and U.K. are getting ready to raise their rates, with some planning eye-popping increases of 41% to 60%. And this comes right after an 8.3% rate jump across the industry in 2023, which means clients might be in for some hefty bills. Meanwhile, top firms are battling it out to snag partners with mind-blowing $20 million compensation packages, creating quite a stir in the legal circles. https://lnkd.in/g4RiXYwE

Thinking about the future of your law practice? Whether planning an exit or seeking ownership, we offer seamless solutions for transferring law practice ownership. Our approach ensures confidentiality, maximizes value, and tailors transition to your needs. With flexible compensation structures, we help you achieve your financial and professional goals. Curious about how we can support your next steps? Connect with us today and explore the possibilities for your practice's future! #LawFirmSuccession #SellYourLawFirm #LawPracticeTransition #LegalExitStrategy #LawFirmOwnership #LPE #LPEMarketplace

Happy to contribute to Law.com International this month about trends in partner performance and compensation. The growing tier of non-equity partners will continue to put firm economics at risk - impacting everything from PPP/RPL to leverage to the development of next-gen equity partners and leaders. All of this starts with having the insights needed to know how this tier (and the rest of the partners) truly contributes to the firm. And that goes well beyond the billable hour... Do you have the right metrics to measure your firm's desired outcomes and ideals? #businessoflaw

The other pay gap: A new report shows the gap between agreed-upon rates and what ends up getting billed has consistently widened at law firms since Q1 of 2022. https://lnkd.in/ggeXYnkm

Law firm billing rates are going up again which is causing many clients to push back. This leaves #biglaw partners with one of three choices: 1) aggressively markdown their actual bills to the client, killing their realization rates; 2) come up with a mutually acceptable fixed fee arrangement; or, take their client and business to a #midsizedlawfirm that has much more agreeable rates.  Many #BigLaw partners explore #fixedrate options with their clients, and this article explores what those options might look like. #fixedfeeoptions https://lnkd.in/e3vke-wB

Thinking about the future of your law practice? Whether planning an exit or seeking ownership, we offer seamless solutions for transferring law practice ownership. Our approach ensures confidentiality, maximizes value, and tailors transition to your needs. With flexible compensation structures, we help you achieve your financial and professional goals. Curious about how we can support your next steps? Connect with us today and explore the possibilities for your practice's future! #LawFirmSuccession #SellYourLawFirm #LawPracticeTransition #LegalExitStrategy #LawFirmOwnership #LPE #LPEMarketplace

With demand increasing in litigation and transactional practices, and jumps in productivity and billing rates, as well as slowing expense growth, law firms “look stronger than ever,” according to new data. Full story: https://loom.ly/cP3Cbqs

Our Co-founder and Partner Scott Yaccarino adds his comments to The American Lawyer's analysis of survey data on Am Law 100 law firm pay ratios. "Equity partner compensation ratios will likely continue increasing at the top tier of the market as those select firms continue to stretch the highest end of their compensation system to attract and retain the most profitable and transformative partners." #legalindustry #lawfirms #lawfirmleadership #lawfirmlife #biglaw #legalrecruitment #legalcareers #lawcareers

51% of law firms plan to give their lawyers additional training on commercial awareness. The BigHand report showed that firms need their lawyers to understand the firm’s commercial position and associates to have detailed discussions with clients on value for money to address and reduce their profit problems. According to the report, “The shift towards a commercial focus for lawyers is inevitable — and firms will fare far better if they drive the conversation, rather than clients.” It continued to say, “And that demands a different culture, one supported by a legal workforce with the confidence to take a business-focused approach to all client engagements”. Despite many firms increasing their billable hours this year, the report highlighted the necessity of law firm leaders to turn their attention from discounting and billing billable hours write-offs to improving financial transparency from the matter onboarding process and throughout the lifecycle. Do you think your firm supports commercial awareness? Or is more work needed to ensure your company boosts its profitability? Find out more: https://lnkd.in/gf7hrcx7 #HQGlobalSearch #LawFirms #Lawyers #EmployeeEngagement

Law360 turned to Miles & Stockbridge #governmentcontracts lawyer Stephen Ramaley for his thoughts on obstacles in a plan meant to increase the number of small businesses in the federal supplier base and boost their access to federal contracting dollars. Steve, who helps small businesses across the country navigate complex size regulations in bids and contracts, says the Office of Management and Budget memo creates uncertainty for all involved.   "It's been a long time cooking [and] this memo addresses a lot of subjects that have been well known to practitioners for a very long time ... [but] the devil's in the detail in these things," Steve said. Read more here: https://www.mslaw.com/news (Login may be required.) #smallbusiness #governmentcontracting #govcon