Corporate lawyers leave large firms to join small firms

The legal industry has changed considerably since the global financial crisis in 2008. And while much attention has been given to the mergers between mid-sized firms, there is another interesting change afoot at the other end of the law firm scale. According to this article, corporate lawyers are flocking toward small law firms. The trend toward smaller firms has been called disaggregation, and it can be explained by looking at how client behavior has changed. Rather than relying on one firm for a package of legal needs, clients are increasingly looking to different experts to execute different tasks. Clients are more conscious than ever of getting good value for money, and many have the impression that specialist services will provide this value, while larger law firms will waste money by charging high fees for first-year associates. The value in small firms may be located in cheaper fees, but many small firms endeavor to provide value in a more specialized and personalized service and to focus on offering high quality work. They also have the advantage rarely having to turn clients away because of conflicts. Lawyers are taking advantage of the changing market to leave large law firms and launch their own enterprises. According to the 2010 lateral report of The American Lawyer 114 partners left Am Law 200 firms to start or join small practices from October 2008 through September 2009. That's up from 70 partners in the previous 12-month period.

Corporate lawyers leave large firms to join small firms law.com Wed, Mar 28, 2012