The American Lawyer released its annual Global 100 report, a ranking of the world’s 100 largest law firms by gross revenue, profits per partner, and total attorney headcount. Overall, gross revenue grew by 4.7 percent to $119.6 billion, and profits per equity partner increased, on average, by 0.4 percent. Attorney headcount also saw an increase this year, with an annual growth of 8.0 percent. Additionally, that same assessment can be applied to the Global Second Hundred, which grew at a 3.6% clip, resulting in total revenue of $33.1 billion, bringing the aggregate figure for the full Global 200 to $152.7 billion. According to the report, much of this growth can be attributed to head count increases, particularly in the Second Hundred, where firms increased their complement of lawyers by 10.2%.
The report revealed that a total of 50 firms cracked the $1 billion mark, up from 46 firms last year. Of the Global 200 firms on the list, United States accounted for 139 of the world’s top-grossing firms, followed by 25 from the United Kingdom, 10 firms from China, and 7 firms from Canada. Seventy-five firms equaled or topped $1 million in PEP, compared with 73 firms last year, the report notes. Additionally, this is the fifth time in the history of Am Law’s global ranking that U.S.-based firms occupied the top four spots. The top five firms in their respective order were Kirkland & Ellis, Latham & Watkins, DLA Piper, Baker & McKenzie and Dentons.
A wider look at the Global 100, ranked by revenue, offers a picture of stability, the report adds. Eight of the firms in 2019’s top 10 remained there this year, as Allen & Overy and Linklaters both slipped slightly. And only one firm, recent trans-Atlantic merger product Womble Bond Dickinson, exited the top 100, replaced by labor and employment specialists Jackson Lewis. The Global Second Hundred does have a handful of newcomers. The highest among them is Spain’s Uría Menéndez, at 167. The other fresh faces are Australia’s Corrs Chambers Westgarth, China’s Jingsh Law Firm and U.S. firms Foley Hoag and Fisher Phillips, (as quoted in The American Lawyer).
See the full rankings and highlights from The Global 100 on The American Lawyer.
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The American Lawyer recently published results from its annual Am Law rankings, the Am Law 200 report, noting that for the first time in years the second hundred largest grossing law firms matched the growth of the top one hundred in nearly every key financial metric. Overall, the Second Hundred increased gross revenue on average by 5 percent, profit per equity partner grew 4.6 percent, revenue per lawyer increased 2.9 percent, and overall headcount rose 2.1 percent.
According to the report, twenty-one Am 200 law firms saw double-digit revenue growth and forty firms saw revenue increase by more than five percent. Within those numbers, there were pronounced differences among different groups in the Second Hundred, as firms ranked 151 through 200 nearly doubled the growth of those ranked 101 through 150, posting a 7.2% revenue increase on average, compared with 3.9% for the top half of the list, the report notes.
Among the Second Hundred firms, Burr & Forman had the largest increase in revenue, jumping 14 spots to No. 155, up 32% from last year. Two firms dropped from the Am Law 100 to the Second Hundred this year: Baker Donelson (101) and Williams & Connolly (102). Meanwhile, three firms joined the Am 200 law firms: Cole Scott & Kissane (163); Hanson Bridgett (192); and Pryor Cashman (178).
Additionally, twenty-five Am Law 200 law firms based or founded in the Midwest increased their revenue on average by 8% last year. Seven of them posted double-digit gains, far exceeding the average 5% growth the Am Law 200 and the 6% growth Chicago-based firms saw in 2018. Those seven firms were Barnes & Thornburg, Polsinelli, Ice Miller, Porter Wright, Robins Kaplan, Benesch, and Spencer Fane.
“Now, as this year’s Second Hundred stare down another major financial crisis, one that will likely be worse than the last, they can learn from the lessons of the past: focus on strong leadership; stay nimble; capitalize on their smaller size; stick with growth strategies; and diversify services when appropriate. Faced with a daunting future, it could mean the difference between success and failure,” (as quoted in The American Lawyer).
See more highlights from The Am Law 200 on The American Lawyer.
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The American Lawyer released its annual Global 100 report, a ranking of the world’s 100 largest law firms by gross revenue, profits per partner, and total attorney headcount. Overall, gross revenue grew by 8.1 percent to $114.2 billion, and profits per equity partner increased, on average, by 4.6 percent. Attorney headcount also saw an increase this year, with an annual growth of 5.7 percent. According to the report, law firm mergers, rapid growth among Chinese law firms, and a healthy American market coalesced to turn 2018 into a spectacular year.
The report revealed that a total of 46 firms cracked the $1 billion mark, up from 34 firms two years ago. Of those 46 billion-dollar firms, United States accounted for 77 of the world’s top-grossing firms, followed by 12 from the United Kingdom, and five from China. Additionally, this is the fourth time in the history of Am Law’s global ranking that U.S.-based firms occupied the top five spots. The top five firms in their respective order were Kirkland & Ellis, Latham & Watkins, Baker & McKenzie, DLA Piper and Skadden Arps.
“Globally, most key practice areas were subject to brisk demand. The merger and acquisitions environment was active, albeit stronger in some markets than others. Disputes work, particularly international litigation and arbitration, kept practitioners busy. And an anticipated dip in investigations did not materialize, with sanctions, the Foreign Corrupt Practices Act and money laundering matters dotting the headlines. Other factors, beyond growing demand, also helped boost the numbers including two significant mergers between U.S.-based firms and two significant trans-Atlantic mergers: Nelson Mullins combination with Broad and Cassel and Hunton & Williams merger with Andrews Kurth Kenyon on the domestic side, and the creation of Womble Bond Dickinson and Bryan Cave internationally,” (as quoted in The American Lawyer).
See the full rankings and highlights from The Global 100 on The American Lawyer.
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The National Law Journal released its annual NLJ 500 rankings, which analyzes data on the largest law firms by headcount. According to the report, the number of lawyers in the NLJ 500 grew 2.5% in 2018 to 169,477, and the average firm size rose by eight lawyers last year to 339. By comparison, the NLJ 500 grew by 1% in 2017 and by about 2% in 2016. Partnerships expanded by just over 1% last year, driven by non-equity partnership growth of 3.8% in 2018, the report also revealed.
According to the report, three firms in the top ten saw upward movement, including Latham & Watkins, Kirkland & Ellis, and Morgan Lewis. New York, Washington D.C., Chicago, Los Angeles and Boston were the top cities with the most lawyers in this year’s listing. Additionally, one group that showed unexpected growth in the 2019 National Law Journal rankings was the category of “other” lawyers, which encompasses counsel, senior attorneys, of counsel and staff attorneys. This cohort showed a net gain of 1,171 lawyers—up 6.4% in 2018. That’s compared to a net gain of 99 lawyers, or just 0.5%, in 2017.
“The 2019 NLJ 500 tells the story of more growth in 2018 than we saw in the previous two years,” said Lisa Helem, Editor-in-Chief, The National Law Journal. “Overall, the 2019 NLJ 500 findings, especially at the top of the list, along with profit increases for much of the Am Law 200, reflect an industry enjoying rising demand and faster growth. The average head count increase—still in the low single digits—is a far cry from the 4% or 5% growth firms saw in the pre-recession period from 2005 to 2008. But given the ugly contraction that followed, there’s something to be said for this year’s more modest gains,” (as quoted in The National Law Journal).
See more highlights from NLJ 500 rankings on The National Law Journal.
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The American Lawyer published results from its annual Am Law 200 report, which includes data and rankings for the nation’s Second Hundred highest grossing law firms. Overall, gross revenue increased on average by 3.1 percent, net income grew by 2.9 percent, profit per equity partner grew by 2.8 percent, revenue per lawyer increased 1.6 percent, and overall headcount rose 1.5 percent. According to the report, eleven Second Hundred firms saw double-digit revenue growth and thirty-eight firms saw revenue increase more than five percent.
The 2019 Am Law 200 report shows a tempered version of the financial strength demonstrated by the Am Law 100 notes Gina Passarella, Editor-in-Chief of The American Lawyer and ALM’s Global Legal Brands. “Firms, on average, performed well, but the growth was significantly less than what the first 100 firms experienced, highlighting the added pressures faced by smaller firms with less differentiation. In that sense, the Am Law 100’s better performance in 2018 is emblematic of another feature of that larger group: greater historical volatility. Second Hundred managing partners need not look upon that with envy,” (as quoted in The American Lawyer).
See more highlights from The Am Law 200 on The American Lawyer.
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The American Lawyer released their 32nd annual Am Law 100 report, which includes data and rankings for the nation’s 100 highest grossing law firms. Overall, gross revenue grew by 8 percent in 2018, coming in at a record breaking $98.7 billion. Additionally, net income increased by 7.8 percent, profit per equity partner grew by 6.5 percent, revenue per lawyer moved up 4.2 percent, and total attorney headcount rose 3.6 percent.
According to the report, thirty-seven firms posted gross revenue over $1 billion in 2018, six more law firms than in 2017. Additionally, ninety-three firms reported gains in revenue, up from 85 firms last year. For 2018, the top 10 firms accounted for 26 percent of the Am Law 100’s total revenue. The next 17 firms accounted for the next 25 percent of revenue. Firms No. 28 thru 53 accounted for another quarter of the revenue, and the final 47 firms generated the remaining 24 percent of the total Am Law 100 firms, (as quoted in The American Lawyer).
For the second straight year, Kirkland & Ellis landed the No. 1 spot as the highest grossing law firm in 2018, with $3.757 billion in revenue, up 18.7% from 2017. Latham & Watkins remained in the No. 2 spot, rising 10.5% in total revenue to $3.386 billion. Baker & McKenzie retained the No. 3 spot, with $2.900 billion in revenue. DLA Piper remained in its respective spot from last year coming in at No. 4 with $2.836 billion. Skadden Arps claimed the No. 5 spot, up 3.5 percent to 2.673 billion in 2018.
See more highlights from The Am Law 100 on The American Lawyer.
Contact Bill Sugarman for more information.
The American Lawyer released their annual Global 100 report, a ranking of the world’s 100 largest law firms by gross revenue, profits per partner, and total attorney headcount. Overall, gross revenue for the Global 100 grew by 6.4 percent to $105.7 billion, and profits per equity partner among Global 100 firms increased, on average, by 3.4 percent. Attorney headcount also saw an increase this year, with an annual growth of 10.7 percent.
For the third time in the history of Am Law’s global ranking, U.S.-based firms occupied the top five spots. Kirkland & Ellis advanced two spots this year to claim the No. 1 spot, knocking Latham & Watkins and Baker & McKenzie down to spots 2 and 3, respectively. Kirkland and Latham both cracked $3 billion in total revenue for the first time in 2017. But while Latham posted a commendable 8 percent increase in revenue, Kirkland’s grew at a whopping 18 percent, more than any other American firm. DLA Piper and Skadden Arps remained in their respective spots from last year, coming in at number 4 and number 5.
Another takeaway for all these firms—and those on the outside looking in—is the gap between total revenue growth and PEP. Even with plenty of money coming in, costs are growing across the world. That, according to former Clifford Chance managing partner Tony Williams, is causing firms to “look much more carefully at who becomes an equity partner and who stays one.” Those elite American firms, consolidating their hold on the top of the list, are already doing this. Now it’s up to those who wish to be in their position to follow suit, (as quoted in The American Lawyer).
See highlights from the full article on The American Lawyer.
Contact Bill Sugarman for more information.
The American Lawyer published results from its annual Am Law 200 report, which includes data and rankings for the nation’s Second Hundred highest grossing law firms. Overall, gross revenue decreased on average by 0.2 percent, net income decreased by 1.4 percent, profit per equity partner decreased by 1.4 percent, revenue per lawyer decreased by 0.3 percent, and headcount rose 0.1 percent.
Although the group as a whole declined in all major metrics, the report revealed that eight Second Hundred firms saw double-digit revenue growth and 22 firms had growth of 5 percent or more. Among the Second Hundred firms, Kobre & Kim had the largest increase in revenue, up by 49 percent. According to the report, one firm dropped from the Am Law 100 to the Second Hundred this year: Pepper Hamilton. Meanwhile, six firms moved onto the Am Law 200. They were Buchalter; Cole Schotz; Eckert Seamans; Goldberg Segalla; Herrick Feinstein; and Marshall Dennehey Warner Coleman & Goggin, (as quoted in The American Lawyer).
“The 2018 Am Law 200 data reflects a stark contrast to this year’s Am Law 100,” notes Gina Passarella, Editor-in-Chief of The American Lawyer. “The declines in key financial metrics among the Am Law Second Hundred were more to do with the firms who fell off the list via merger or closure than an overall decline in financial health of the group as a whole. These stats show there is much more volatility in the Second Hundred when it comes to who is on or off the list than we saw with the Am Law 100.”
Senior Analyst at ALM Intelligence, Nicholas Bruch adds, “Two important findings emerge from the Am Law 200 data. First, many firms within the Second Hundred are struggling with the transition the legal market is undergoing right now. Am Law Second Hundred firms fared less well, on average than their larger peers. The second finding is more hopeful. Many firms within the Second Hundred produced strong years. This points to a fact we see very clearly in the Am Law data: that some firms are finding ways to manage difficult market conditions and outperform the market.”
See more highlights from The Am Law 200 on The American Lawyer.
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The American Lawyer released their 31st annual Am Law 100 report, which includes data and rankings for the nation’s 100 highest grossing law firms. Overall, gross revenue increased on average by 5.5 percent, net income increased by 6.1 percent, profit per equity partner grew by 6.3 percent, revenue per lawyer moved up 3.2 percent, and headcount rose 2.2 percent.
According to the report, thirty-one firms posted gross revenue over $1 billion in 2017, four more law firms than in 2016. Additionally, eighty-five firms reported gains in revenue, up from 82 firms last year. Kirkland & Ellis landed the No. 1 spot as the highest grossing firm in 2017, with $3.165 billion in revenue, up 19.4% from the previous year. Latham & Watkins, who had been on top for the last three years, dropped one spot to No. 2 with a record $3.064 billion in revenue. Baker & McKenzie remained in the No. 3 spot, with $2.670 billion in revenue. DLA Piper advanced one spot to No. 4 this year, after a 6.6% increase in revenue, knocking Skadden Arps down to the No. 5 spot.
“Despite increasing pressures on price and demand, more firms saw growth in revenue and profits in 2017 than they did in the prior year. A closer look at the data shows the firms toward the top of the 100 are growing at faster rates than the bottom half of the list, continuing a trend of stratification we have seen building over years. But all in all, most firms figured out a way to show increasing returns in 2017,” notes Gina Passarella, Editor-in-Chief of The American Lawyer.
See highlights from the full report and article on The American Lawyer.
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