The annual McCormick Group review of five-year financial statistics reveals a surprisingly wide disparity in the financial performance of U.S. law firms during the years 2009-2014.
Overall, the 80 firms studied reported an average increase in revenue of 21.33 percent and an average increase of 24.75 percent in profits per equity partner during those five years. Twelve firms reported more than 30 percent increases in both revenue and profits per equity partners during the time period. On the other hand, an equal number of firms reported aggregate increases of less than 10 percent increase in both revenues and profits per partner. Four firms reported declines in both revenues and profits per equity partner between 2009 and 2014.
Among those firms in the “30-30” club are such high-profile firms such as Gibson, Dunn & Crutcher, Kirkland & Ellis, Latham & Watkins, Paul Weiss and Simpson Thacher & Bartlett. But there were several lesser-known firms that made the list, including Akerman and Fenwick & West.
The study also shows 2014 was a substantially better year for firms than 2013, with an average increase in revenues of 5.71 percent, as compared to an increase of 2.67 percent from 2012 to 2013. The average increase in profits per equity partner was even higher, at 7.90 percent, as compared to a 2.72 percent increase the previous year.
This study was based on reports from American Lawyer Media and other public sources. For a chart listing each firm’s reported results for 2009, 2013, and 2014, please contact Steve Nelson at snelson@tmg-dc.com.
