The Lawyer’s new China Elite report contains the most detailed research available on the PRC legal market and contains unparalleled insight into the country's leading law firms. They vary in size, practice focus and geographic coverage, but they all share one common quality – ambition... Read more
This year, The Lawyer’s annual ranking of the largest UK law firms by turnover is available as an interactive, digital benchmarking tool. For the first time this will allow you to manipulate each data set against the metrics of your choice.
In this week’s main feature we’ve looked beyond the numbers to find out what really went wrong. Was it the gradual build-up of partner resignations? A lack of communication? The failed merger talks?
No, no and no. Above everything, all the signs point to this being a tale of the calamitous impact of supremely poor cash flow management.
“Many of these senior partners have grown up in an era where the only way is up,” said one source. “There are lots of firms sleepwalking to extinction for this reason.”
Don’t go making the mistake of thinking that the hooking up of Manches and Penningtons is a contrasting romantic story either. Four other firms were approached by Manches during the same period. Still, that doesn’t mean the deal won’t be a success.
As for the aftermath, for any other zombie firms out there, it’s time to heed some lessons.