Avoiding Extinction in A Turbulent Legal Market: The Other Side of Consolidation
April 01, 2003
The early days of 2003 have brought a stark reminder to the leaders of law firms. While strong law firms have experienced an exceptional level of prosperity and growth in a consolidating market, continued expansion and ever increasing profitability are not the only potential destinies for law firms today. As the high profile closures of long established firms such as Brobeck; Peterson & Ross; Hill & Barlow and others demonstrate anew, firms can fail. And with failure come career interruption, client uncertainty and financial distress for many.
Professional Development Comes of Age
April 01, 2003
As law firms grow in size and complexity, they are increasingly realizing that professional development of their lawyers can no longer be left to the haphazard of on-the-job experience. Competing effectively today requires strategic thinking about cultivation of the law firm's primary business asset: its lawyers.
The Contingent Workforce: Employer Expectations and Legal Realities
April 01, 2003
When individuals are not considered to be employees, employers are often insulated from various discrimination suits. While this is not the main reason an employer hires contingent workers, it can be an added benefit. However, just as it is important to classify individuals properly for benefit and tax purposes, law firms also need to classify individuals properly to ensure they understand the possible discrimination issues up front and will not be unwittingly blind-sided by someone whom they thought was a contingent worker, but who is subsequently determined to be an employee. The U.S. Court of Appeals for the Second Circuit held in Eisenberg v. Advance Relocation & Storage, Inc. that when determining whether a worker is an employee for Title VII purposes, the analysis needs to focus on the "extent to which the hiring party controls the manner and means by which the worker completes [his or] her assigned tasks, and not on how [he or] she is treated for tax purposes or whether [he or] she receives benefits." The factors used by the court were derived from the 13 factors set forth in the U.S. Supreme Court case, Community for Creative Non-Violence v. Reid, 490 U.S. 730 (1989). The court in Eisenberg focused on how the "anti-discrimination laws were not intended to be skirted by the terms of individual employment contracts."
Effective Communication In The 21st Century
April 01, 2003
How many times have you heard it? It's the little things that count. Trite as this axiom might sound, nowhere does it hold more truth and power than in the competitive world of business - where the little niceties and social amenities, these things I call the half-percents, can mean the difference between simply existing and gaining the edge so necessary for success in today's fiercely competitive business environment. Whether you are dressing down, communicating via voice-mail or e-mail, 21st Century business etiquette should be followed.
Coping with Poor Corporate Hygiene in the Early Stage
April 01, 2003
Part 2 of 2. Last month, Dan Mahoney and Jim Thorton discussed the costs of "poor corporate hygiene" in early stage companies to include the overzealous use of options (and how it affects the cap table), as well as the pitfalls of short-sighted legal structuring. The lack of attention to these issues can often render an early stage company unfundable in the next round. This month, Dan and Jim discuss the potential benefits, but more importantly the likely costs, of short-sighted corporate partnering, bad licensing and how ineffective boards can negatively impact early stage companies.
Secondary Private Equity Funds: The Perfect Storm
April 01, 2003
The recent growth and maturity of the private equity market has generated significant secondary market opportunities. In a maturing private equity industry, the secondary market has become increasingly viewed as a tool for private equity portfolio management and a source of liquidity, in a relatively illiquid market.
