Greenberg Traurig grows revenue and partner profits as firm gears up for efficiency push
US firm posts 4% revenue rise alongside 5% increase in PEP
March 07, 2017 at 09:49 AM
4 minute read
Greenberg Traurig has continued to make steady gains in 2016, with revenue growing more than 4% to nearly $1.4bn (£1.1bn).
However, the full-service firm, which celebrates its 50th anniversary this year, plans to take a break from expanding in 2017 and will instead concentrate on efficiency and profitability. It is taking a wait-and-see approach, said firm executive chairman Richard Rosenbaum – in part because of the political climate and concerns about a move away from globalisation.
Greenberg Traurig's $1.37bn in gross revenue last year was an increase of 4.2% on 2015. The firm's net income grew by 6.4% to $476.5m (£391m). Profit per equity partner grew 4.7% to $1.5m (£1.2m). The firm's profit margin was 35%.
Greenberg, which had 308 equity partners in 2016, added 33 full-time-equivalent non-equity partners, bringing the total for the year to 982 equity and non-equity partners. The firm's full-time-equivalent lawyer headcount grew 4.2% from 1,809 to 1,884.
Rosenbaum said its revenue was higher than the firm had expected – in part because it hired more lawyers than planned, including some in private equity, high-end litigation and leadership.
Among the firm's high profile lateral hires in 2016 was former New York City Mayor Rudolph Giuliani, who took a leave of absence in October to work on the Trump campaign but has since returned to the firm.
Rosenbaum said private equity, related M&A and litigation were busier in 2016, and the firm saw a comeback in bankruptcy and insolvency work. He expects to see more of this in 2017, he said. Greenberg also is emerging as a major player in technology and medical devices, he said.
Greenberg opened its Berlin office in 2015, so 2016 included the first full-year results for that outpost, which outperformed expectations. Other foreign offices also did well, including Warsaw, which was up 20% from the prior year. Those offices pay lawyers in local currency, he said, which allowed Greenberg to avoid most currency fluctuation issues.
The firm's realisation rates have remained steady, hovering around 85%. Greenberg did not raise rates as much as some other elite firms, Rosenbaum said, and did a good job of managing alternative fee matters. An increasing percentage of the firm's work is done through non-billable hours, with fixed fees being the larger component.
This year the firm will be working to integrate its past lateral growth, consolidate resources and strengthen profitability.
Rosenbaum expects that the legal market in 2017 will be shaped by political activity in the US and abroad, and he expects to see growth in demand for litigation, government regulatory work at the federal and state levels, bankruptcy and insolvency matters, and possibly real estate transactions and M&A.
"We're cautious about transactional growth; that's why we're not planning major growth this year," Rosenbaum said. "This year we're really planning to focus on the excellence, the efficiency, our profitability and not so much on any full boats of lawyers."
Real estate work will continue, but many people believe that economics may cause a drop in that work, he said.
"Most of us are just waiting to see what happens with some of the political things going on, not only with the US, but globally," said Rosenbaum, who described the trend as "almost anti-globalisation." He asked: "What is that going to do to trade and to business?"
Closing borders, leaving the eurozone and adopting a mentality that says 'let's take care of ourselves first' will affect trade and the economy, but what that effect will be is still unclear, Rosenbaum said. The trend away from globalisation may mean fewer companies will be bought and sold internationally.
"If that happens, that's going to impact law firms that were built to serve that kind of globalised business environment," Rosenbaum said.
But if the 'America first' approach encourages investment in the US in the short term, Greenberg will be well positioned, as it is still primarily invested in the US, he said.
"There are firms that have more than 50% of their lawyers outside the US," Rosenbaum said. "If I was one of those firms, I'd probably be sleeping a little less well right now."
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllFCA Fines Metro Bank £16.7M Over ‘Financial Crime Failings’
Milbank Leads Bonus Race, Announces Year-End Pay News
K&L Gates Hires Energy Partner from Gibson Dunn in Singapore
Trending Stories
- 1Judicial Ethics Opinion 24-58
- 2Sweet James Clinches $17.4M Personal Injury Jury Verdict in California's Kings County
- 3In Lame-Duck Session, US Senate Confirms Illinois Federal Judge on Bipartisan Vote
- 4Gordon Rees Opens 80th Office, ‘Collaboration Hub’ in Palo Alto
- 5The White Stripes Drop Copyright Claim Against Trump Campaign
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250