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Law Firms Pursue Growth by Poaching in Tough Climate

Published February 01, 2012 ■ Trends and Research

Wall Street Journal (02/01/12)

As law firms cut back on entry-level hires, they have increased their efforts to acquire partners from other practices. Partner defections increased in 2011, and legal industry observers predict the trend will continue in 2012 as firms compete for business amid sluggish demand for legal services.

Lateral hires remained by far the most popular option for growth last year, according to an Altman Weil survey of 240 law firms. More than 91% of partners who responded said they planned to pursue more lateral hires. A report to be published today by American Lawyer finds that 2,460 partners exited or joined top law firms in the first nine months of 2011.

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Ortoli | Rosenstadt: What Exactly Is a Seller Responsible for When Selling Its Staffing Firm?

Buyers of a business generally expect sellers to be responsible for certain liabilities relating to when the seller owned its business—a concept mergers and acquisitions professionals refer to as indemnification. Indemnification is one of the most heavily negotiated, and potentially most significant, provisions of a purchase agreement, and understanding the terminology common to such agreements is essential when negotiating a deal. Attorney Paul Pincus of Ortoli Rosenstadt LLP explains what sellers are liable for, how a seller’s liability may be limited, and how buyers may seek to fund potential indemnity claims.

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Law Firms Pursue Growth by Poaching in Tough Climate

Ortoli | Rosenstadt: What Exactly Is a Seller Responsible for When Selling Its Staffing Firm?

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