Following the launch of its innovative contract lawyer business ‘Peerpoint’ last November, Allen & Overy has made a move to develop the high-end service further, today (5 September) announcing the hire of Richard Punt, the managing partner for clients and markets at accountancy giant Deloitte, as Peerpoint’s chief executive officer.
‘The question is do law firms have the guts to change or just wait for their own giant killer’ – LB’s head talks future of law with Lex 100
Alex Novarese, editor-in-chief of Legal Business, sat down with Lex 100 recently to discuss the current state of the legal industry and its potential future for those considering a career in law.
The Friday Edit: Interesting things that happened this week…in case you were doing something else
Welcome to a new and hastily-named feature on Legal Business’s blog in which we reflect on the week and highlight notable and interesting articles for readers shamefully doing other things than living on our website over the last four days. The format will likely evolve since I’m making it up as I go along.
Guest post: End of an era – the legacy of Des Hudson
Eight years is a long time at the helm of an organisation like the Law Society, and so as he departs Chancery Lane as its chief executive for the last time, Des Hudson takes a lot of baggage with him. But what is the legacy of a man who started off as a breath of fresh air after taking over from the unpopular Janet Paraskeva, and ended up on the wrong end of a vote of no confidence from the profession?
Continue reading “Guest post: End of an era – the legacy of Des Hudson”
Schadenfreude alert on High Street as Co-op’s legal services division slumps to £5.1m loss
The Co-operative group’s push into high street legal services continues to falter, with the unit making a £5.1m loss for the 26 weeks to 5 July.
Clifford Chance takes HSF partner in bid to boost its capital markets practice in Paris
Magic Circle firm Clifford Chance has hired longstanding Herbert Smith Freehills’ partner Alex Bafi, one of London’s high-profile US securities lawyers, as it expands its capital markets practice.
The early Bird & Bird catches the worm – firm prepares to practise Chinese law
Bird & Bird has put plans in place to gain entry to a pilot scheme in China that will allow international firms to practise Chinese law for the first time.
Continue reading “The early Bird & Bird catches the worm – firm prepares to practise Chinese law”
Freshfields hires US M&A and leveraged finance heads in New York expansion
Freshfields Bruckhaus Deringer has hired division heads for its M&A and leveraged finance practices in a drive to increase the firm’s US footprint and increase market share in cross-border deals.
Continue reading “Freshfields hires US M&A and leveraged finance heads in New York expansion”
Clifford Chance takes corporate team from Willkie Farr two years after leaving Freshfields
Magic Circle firm Clifford Chance has made a private equity push in continental Europe with the hire of Willkie Farr & Gallagher partner Fabrice Cohen in Paris, who moves as part of a three-lawyer team.
Bingham’s City arm faces restructuring team exodus to Akin Gump
Bingham McCutchen is set to suffer the departure of a team of City partners from the firm’s trophy financial restructuring group to US rival Akin Gump Strauss Hauer & Feld‘s London office.
Continue reading “Bingham’s City arm faces restructuring team exodus to Akin Gump”
Boies Schiller hires WilmerHale’s Miles to boost London arbitration
US litigation powerhouse Boies Schiller & Flexner has hired long-serving arbitration partner Wendy Miles from Wilmer Cutler Pickering Hale and Dorr to kick start a London arbitration practice.
Continue reading “Boies Schiller hires WilmerHale’s Miles to boost London arbitration”
LB100: The Second Quartile – Close Hauled
It’s an unforgiving environment, but 2014 once again shows the well-captained mid-tier outfits sailing free.
‘I’m a great believer that you can always do better and however good a particular year was, you have to exceed that. And we are far from perfect.’ So says Simon Beswick, managing partner at Osborne Clarke (OC), one of the strongest performers in the Legal Business 100 (LB100) this year.
The Bristol-based firm saw turnover rise 26% in 2013/14 – the largest single increase in the LB100 – and has seen revenue rise by 69% since 2009.
Continue reading “LB100: The Second Quartile – Close Hauled”
Converging on boom-time profits without a boom – the big four now and then
They say averages lie, though in my experience not as much as people, but producing an annual report with 2,000 data points as we do with this month’s LB100 means it can be hard even for professional anoraks such as myself to find the nuggets of meaning in the thickets of information.
Well, when in doubt I start with the market leaders, so I dug up the numbers on London’s big four in their peak of 2008 to compare against this year’s results to see how they have changed. Continue reading “Converging on boom-time profits without a boom – the big four now and then”
Women in law – A belated bandwagon, but still welcome
Rarely, even in the conservative game of law, has so necessary a measure been so long avoided until the status quo became laughably, farcically, untenable. The move is for major law firms to start articulating public benchmarks for their proportion of female partners – corporate speak for the series of concrete targets announced this year to stem the huge outflow of talented women from the profession.
For years the profession had claimed that meritocracy and changing attitudes would feed through into higher than the circa-20% female partnerships currently at most firms; over the last five years it has become apparent how baseless that conventional wisdom was as gender diversity has barely budged. Indeed, there is some evidence that the two primary tools by which law firms increasingly manage their partnerships – lateral hiring and partner exits – are both favouring male lawyers over women and offsetting any number of women’s networks and mentoring schemes.
Continue reading “Women in law – A belated bandwagon, but still welcome”
LB100 2014: Statistically speaking, you may not need a bigger boat
Last year delivering our annual results issue Legal Business remarked that the age of turbulence facing law firms since the 2008 banking crisis was far from over. And so it has proved. Despite all the talk of returning confidence, and clear evidence of recovery in the UK economy, it’s still choppy out there. Stripping out another year of consolidation, the numbers are a little better than 2013 but that’s about it. Mergers have driven the market to nearly £21bn in revenues but average partner profit of £640,000 across the top 100 is still a way off the all-time peak of £703,000 recorded in 2008. The world’s second largest legal market is tracking inflation.
Continue reading “LB100 2014: Statistically speaking, you may not need a bigger boat”
Bakers’ Leite set for second term leading world’s largest law firm
Eduardo Leite looks set to be re-appointed as chairman of Baker & McKenzie shortly after it regained its position as the world’s largest law firm. Leite, who took charge of the US-bred practice in 2010, has faced no opposition for the post and partners at the firm understand his re-election will be a formality.
His next term is expected to be confirmed by partners during the firm’s upcoming annual meeting in London in October. Bakers typically looks to extend leadership positions on a rolling basis, with Leite set to stay on as chairman for between two and four further years.
Continue reading “Bakers’ Leite set for second term leading world’s largest law firm”
Reviving deal market lifts LB100 as top UK firms edge up profits and fees
While the headline Legal Business 100 (LB100) results are once again inflated by significant merger activity at every level, there is evidence that many of the top 100 grossing firms in the UK are enjoying organic growth again.
Total revenue for the LB100 for 2013/14 is £20.82bn, an increase of 9%, while lawyer headcount swelled 6% to 65,111. With revenue growth slightly faster than 2012/13 but headcount growth slower, average revenue per lawyer (RPL), profit per lawyer (PPL) and profit per equity partner (PEP) were all up by 3% to £320,000, £98,000 and £640,000 respectively.
Continue reading “Reviving deal market lifts LB100 as top UK firms edge up profits and fees”
Weil, Gotshal & Manges settles multimillion-pound negligence claim with private equity house
Weil, Gotshal & Manges has paid over £3m to settle a professional negligence claim made against it in late 2013 by private equity house Bancroft.
The case was set to be heard before the commercial court in July but the US law firm agreed a confidential settlement that Legal Business understands to be between £3m and £5m.
LB100: The Top 25 – Wind in their Sails
Consolidating firms are jostling for position in the race to dominate international and UK markets. But even amid fairer conditions, the course to victory is uncertain.
‘To reach a port we must set sail –
Sail, not tie at anchor
Sail, not drift.’
Franklin D Roosevelt, 1938
‘One feels from the body language out there that firms which have come through the recession successfully are beginning to unwind, beginning to stretch a bit, beginning to feel as though more business is coming back – particularly in the corporate market. The corporate partners who had to lay low for some years are starting to unfurl their wings a little bit and ruffle their feathers.’
Accounts show fee and profits slide at Edwards Wildman in London as partner departures pile up
Having endured a difficult time in recent months with an exodus of partners from its London office, US law firm Edwards Wildman Palmer published its UK limited liability partnership (LLP) accounts in August, which recorded a 10% drop in UK turnover, alongside a 21% drop in profit.
The LLP accounts, dated to 31 December 2013, show revenue fell to £25.1m from £27.8m, operating profit decreased to £8m from £10.1m and net debt rose to £323,827 from £54,952.
