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Prospering in the 'New Normal'
Over the past several months, the following headlines have appeared in the legal press:
- “Demand for attorney services has declined for the third consecutive quarter”
- “RPL grew at a 1.5% increase YoY from 2016 to 2017 in the AmLaw 100”
- “37% of General Counsel plan to expand their in-house legal staff in 2018”
While 2017 was a good year for some of the top firms in the AmLaw 100, for many mid-sized and AmLaw 200 firms, it was a flat to down year. The first quarter of 2018 continues the trend with the top AmLaw 100 firms seeing a .4% increase in demand while the legal market in general declined by .5%. It would appear that the old phrase “bigger is better” applies to this year's legal market.
Many law firms can and have survived “down” years in their history. In fact (for one client) a 10% revenue drop (resulting from a delayed multi-million-dollar client payment) combined with an even larger malpractice case settlement reduced partner income by almost 50%.
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