Warning Signs of Law Firm Failure
Here’s the full article and the 3 shared characteristics shared by failing firms:
- Below average financial performances that included excessive leverage, significant deferred obligations, low productivity and poor realization was one main category.
- Internal dynamics involving leadership problems, incompatible goals among partners, differences in compensation philosophies and a lack of succession planning was the second common theme.
- External dynamics dealing with competitive pressures over a historical client base, access to new clients or an ability to recruit was the third major component shared by failed firms.