The ABA Journal reports:
Law firms working on mergers and acquisitions typically get paid when and if a deal closes. That’s bad news for law firms working on deals that got delayed or fell apart in the economic downturn.
Mel Immergut … told the American Lawyer that some law firms will have to write off much of their deal work. The situation is particularly bad for firms working on stalled or collapsed mergers, private equity deals and corporate financings…
One lawyer [said] law firms will be reluctant to insist on strict payment terms since they will be competing for future work. “Law firms don’t have a lot of leverage here,” the lawyer said.
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