Commentator predicts drop in law firm profits
Legal sector commentator Ashley Balls has predicted a significant drop in profit margins, saying that profits could decrease from 30-40% to somewhere between 8 and 15%. comments powered by Disqus
In his new book 'Law Firm Strategies for the 21st Century', Balls says that as law firms become more dependent on outside capital, they will also adopt the profit margins 'found in other areas of business'.
The book says that the number of firms will 'almost certainly not' increase, as 'thousands will disappear'. The changes, according to the argument, are precipitated not only by the economic downturn, but also by price resistance from clients, underfunded pensions in some firms and deregulation.