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Shoosmiths' partner profits halved

Profits halved and T/O down 4% is serious and potentially catastrophic. The short term solution is to retire partners and establish a more corporate structure. The present leverage ratio is insupportable and has an overall impact on pricing with too much emphasis on the top end. It is highly likley many partners fail to personally generate sufficient fees to cover thier fixed and variable costs (including personal drawings). This kind of business model, in an environment where clients have effectively gained control of the pricing model, is high risk and unsustainable. Partners hahve to generate more or go.

6-Jul-2009

10:25 pm