Law Firm Revenues Back on the Rise

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Summary: After the recession crushed the legal industry eight years ago, the industry as a whole is beginning to see levels back at the pre-recession levels.

Revenues are ticking upwards at many of the big law firms. According to Citi Private Bank’s Law Firm Group survey, the first quarter showed an increase in revenue of 5.8 percent. An increase of this amount has not been seen since before the recession hit the legal industry after the first quarter of 2008.

  

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The survey also showed for the first time in five years an improvement in demand, collections, and rates. Rates were up 3.2 percent, collection cycle shortened by 1.5 percent, and demand increased 1.8 percent.

See Citi Private Bank’s Quarterly Report Shows Moderate Confidence.

Citi acknowledges one factor that contributed to the improved numbers as the piles of unpaid bills from the end of 2015. Keeping the momentum going through the rest of the year may prove to be tough but the banks are hopeful.

Others are hopeful as well including legal consultant Peter Zeughauser. He said via email to The Wall Street Journal, “it’s a good sign that growth appears to be broad-based across geography, practice area and industry sectors.” He also backed up the fact that clients are willing to pay big bucks for some work since big firms aren’t losing as much work to cheaper competitors.

Read Law Firm Top Hourly Rates Reaching $2,000 to learn more.

Zeughauser elaborated in his email, “There will always be those who say the reset button was pushed, the golden era will never return, and the sky is falling. But, that just isn’t so for well-run firms.”

Do you think things are turning around for law firms? Tell us your thoughts in the comments section below.

To learn more about the Citi Bank surveys, read Citi Private Bank’s Law Firm Group Financial Report for the First Half of 2015.

Photo: legalproductivity.com