While the rest of the western world prepared for the holidays, big firm lawyers, especially partners, were busy with a different task: trying to collect their outstanding bills before the end of the year. For some it was a chance to reconnect with clients; for others, it’s a necessary evil to get their (choose all that apply) managing partner, practice group leader, CFO, spouse, off their backs. As the songs say, it’s the most wonderful time of the year.
Collecting money in the fourth quarter will be a serious undertaking this year. All the leading indicators—the new LegalView Legal Market Index from TyMetrix, and the quarterly bulletins from Citibank and Wells Fargo—have reported that through September clients have held their purchasing of legal services in check. By those three accounts, the market has either improved slightly or dipped again when compared to 2012. Which means that those partners who’ve had work this year need their clients to pay up or many of their firms will miss their budget targets. At many firms, the cash-flow cushions of the past, like the concept of equity partner tenure, are just visions of sugarplums dancing in their heads.
