Editor’s Note: this is the second in a three-part series looking at issues related to peer selection. Part I looks at a new approach to selecting peers. Part III will be published next week. Part III looked at the drivers of profit per equity partner.
The previous article described a data-driven method for identifying financial peers for a selected law firm. To recap, revenue is combined with two additional metrics: revenue per lawyer and profit margin %. Peer firms are identified as those which are most similar to the selected firm on all three metrics combined.
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