Never has it been harder—or more crucial—to break out of the pack. Still smarting from the recession and facing fierce global competition, firms had been hoping for stability in 2011. But what they got—as shown by the results of The American Lawyer ‘s ninth annual survey of managing partners, chairs, and other leaders of Am Law 200 firms—was slow-paying clients, struggling transactional practices, and, if they’re lucky, the prospect of modest billing increases in the months ahead.
Indeed, nearly a third (29 percent) of respondents said they expect their once-bustling corporate practices to be their most challenged practice group next year. Barely any respondents—just under 2 percent—said they anticipate a significant increase in deal flow in 2012, while 36 percent expect it to be flat. Meanwhile, many firms are seeing collection times lengthen: Forty-three percent of respondents said their clients are taking longer to pay, with one law firm leader explaining in an interview that 90 days is the new 30. And while almost all respondents (98 percent) said they expect to raise rates next year, only 5 percent anticipate hikes of more than 5 percent.
