June 29th, 2011 by Rebekah Smith
As financial experts, consultants, and valuation professionals, the outlook and performance of law firms has a direct impact on our practices. If companies are working on estate planning with attorneys then there tends to be a related decline in estate valuations. If merger and acquisition activity is down for a law firm, so is the need for a valuation professional. If litigation work declines, so does the need for financial and damages experts.
Altman Weil, Inc. (provider of management consulting services to legal organizations) conducted a survey regarding the confidence of law firms titled Law Firm in Transition Survey 2011. The survey was conducted in April and May of 2011 and includes completed surveys from managing partners and chairs at 240 U.S. law firms with more than 50 lawyers.
Highlights from the survey include:
In general, the survey concluded that law firm confidence was high going forward. They anticipate that revenues will increase as a result of more work. This is good news for those consultants and experts whose performance is tied to work generated by law firms. And as law firms consider alternate fee arrangements with clients (non-hourly), valuation professionals and experts may see some requests from attorneys they work with to consider the same in their practices.
Have you experienced this in your practice? If so, what type of requests have you had from attorneys for alternate fee arrangements?