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Law firm profits set to be cut in half
Legal sector guru Ashley Balls is predicting that profit margins are likely to fall from their present level of 30 to 40% and could well end up at half that mark or even less.
Law firms could expect a decrease in profit margins Syda Productions
In 'Law Firm Strategies for the 21st Century', published this month by Globe Law & Business, he argues that they 'may settle at around 8% - 15%'. He believes that, as law firms become more dependent on outside capital, they will also adopt the profit margins 'found in other areas of business', at the 8 to 15% mark.
Pensions
Numbers of firms will 'almost certainly not' increase, as 'thousands will disappear'. Mr Balls believes that the economic downturn was just one driver of change. Also important were price resistance from clients, underfunded pensions in some firms and deregulation. Source: LawFuel.
