How Did Big Law Profits Surge? Demand and Big Rate Hikes Were Key - Law.com

What You Need to Know

• High demand, couple with other factors, helped profitability growth outpace revenue gains at many firms.
• Firms are becoming savvier at pricing, increasing rates for in-demand transactional work.
• Other factors are behind the profit surges, including a shift in practice mix, leverage and head count changes.

Profits growth of more than 5% would be a great year for any big law firm. But a look at the early reports of Am Law 200 financials shows many law firms with eye-popping profit per partner hikes of more than 20%, including at Sidley Austin, Dechert, McDermott Will & Emery, Hogan Lovells and Alston & Bird, among others.

Many firms’ profit gains were higher than their revenue growth. And unlike 2020, the profit surges up and down the Am Law 200 were not uniquely tied to expense cuts.

Want to continue reading?
Become an ALM Digital Reader for Free!

• Free access to 1 article* every 30 days
• Access to the entire ALM network of websites
• Unlimited access to the ALM suite of newsletters
• Build custom alerts on any search topic of your choosing
• Search by a wide range of topics

Already have an account? Sign In Now

*May exclude premium content

source: https://www.law.com/2022/02/28/how-did-big-law-profits-surge-demand-and-big-rate-hikes-were-key/

Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.