Alex Novarese

October 12, 2011 | International Edition

The international market is going through a period of flux, as forces that have been bubbling away for years gradually twist the industry into different shapes. Looking at the results from this year's Global 100 gives some indication of how this is playing out, but the patterns are still far from set. There is a growing push for firms outside the top tier to achieve real scale fast – as typified by international moves from Norton Rose, Ashurst and Hogan Lovells. Certainly, there is an increasing premium being placed on scale. Whether articulated or not, a common aspiration among many major firms in the UK is to secure a good position in the global top 50 by revenue.

By Alex Novarese

3 minute read

October 12, 2011 | International Edition

Rising profits at expansive US law firms and continued weakness in sterling look set to sustain competitive pressure on globally ambitious UK firms for years to come, according to new research. This year's Global 100 – a joint initiative from The American Lawyer and Legal Week – shows leading US players gaining a stronger grip on the upper echelons of the profession globally, based on both profitability and fee income. The three largest law firms in revenue terms are either US-based or the result of unions structured through vereins – with Baker & McKenzie, Skadden Arps Slate Meagher & Flom and DLA Piper topping the income rankings.

By Alex Novarese

6 minute read

October 07, 2011 | International Edition

What makes City law firms cost as much as they do? As the heated debate generated by FT GC Tim Bratton's recent blog illustrates, it's a familiar topic. The usual suspects put forward include partner profits, hourly billing, associate salaries, the media and plain old greed - and there's something to all the aforementioned. Still, much as they offend the Value Police, I'd argue that the influence of some of these villains is overstated, while some key factors go little noticed. So, for what it's worth, I'm jotting down what I'd argue are the strongest factors propping up law firm rates.

By Alex Novarese

6 minute read

October 05, 2011 | International Edition

Since the 1980s, it's been clear who is in charge at large City law firms: corporate and banking partners. The reason is fairly obvious – unlike the US and many foreign markets, City law firms make most of their money from transactional work and their corporate practices have become the dominant power blocs at most top 25 (and a good number of smaller firms). Partnership remuneration may be relatively flat and law firms are supposedly consensus-driven. There's some truth to that, but not all partners are created equal. The direction of most City law firms is set by a relatively small group of partners, the vast majority of whom are drawn from transactional disciplines. When managing partners talk about getting buy-in, getting this group on board is what they mean. That ambitious law firms must lead off their corporate teams has become a cliche so utterly prevalent that it is hardly ever acknowledged, let alone queried.

By Alex Novarese

3 minute read

October 05, 2011 | International Edition

Given the political charge it had built up, it was inevitable that media reaction to the final report from the Independent Commission on Banking (ICB) would be framed as a win or loss for the banks. Even on that basis, it was a tricky call – the final proposals issued last month proving a little tougher in terms than expected, but with a longer-than-predicted timeframe for implementation of 2019. And on reflection it becomes clear that this awkwardly British process totally defies easy categorisation.

By Alex Novarese

8 minute read

September 28, 2011 | International Edition

What is the world coming to when Ashurst – of all firms – pulls off a deal that is both globally transformative (for it) and hugely illustrative of the current shifts in the international market? True, you wouldn't necessarily know the deal carries that much weight from the initial reaction. That's largely due to the novel structure used to bind the two firms, which has left rivals somewhat nonplussed.

By Alex Novarese

3 minute read

September 21, 2011 | International Edition

Don't get me wrong – there's a lot of truth to the criticism that law firms aren't good at differentiating themselves. In a fragmented industry, many large firms blur into each other – either because the business has grown in a haphazard fashion or the firm can't stomach the internal politics of selling some parts of the business over others. That said, you still have to wonder if the benefits of a law firm being highly differentiated – even having a unique selling point – are oversold. Fifteen years of covering business makes me suspect so. The world is teeming with famous brands that ran with ideas others came up with, only did it better – Apple is probably the most celebrated current example. And what evidence is there that law firms benefit hugely from being first-movers or unique? A very select handful of legal institutions can be said to have attained that status, and very good for business it is, too. But what can the wider legal market extrapolate from the genesis of Wachtell Lipton Rosen & Katz? Not much.

By Alex Novarese

3 minute read

September 21, 2011 | International Edition

Cards on the table - unlike a fair number of lawyers, I don't see how you can make the case that legal aid can avoid cuts at a time of hugely strained public finances. On balance, there is also something to the Government's argument that legal aid in England and Wales is relatively costly by international standards, even if the case has been overstated and some of the reasons for that expense are in dispute.

By Alex Novarese

3 minute read

September 16, 2011 | International Edition

There's only one thing that gets law firms more flak than not bothering to do anything to tackle entrenched social issues or the personal cost their businesses demand of their staff. And that's law firms bothering to do something to tackle etc, etc... Take PRIME, the new initiative launched this month by 23 major law firms - including the entire magic circle - with the aim of improving social mobility in the law. The aim is relatively simple: to usher in a cross-profession model for quality work experience for the kind of teenagers that rarely have their eyes opened to the possibility of a career in law.

By Alex Novarese

5 minute read

September 14, 2011 | International Edition

It was probably inevitable from the moment the two aeroplanes struck the Twin Towers a decade ago that the world was about to face a period in which the competing interests of security and liberty – two issues that go to the heart of the law's role in society – would come into prolonged conflict. The former of these interests was dominant in the five years after the attacks as the US and UK pushed on with a legally controversial conflict and ushered in a series of aggressive anti-terrorism measures. In the process, the US often sought to recast terrorism in legal terms applied to war rather than criminal procedures.

By Alex Novarese

3 minute read