Remaking News of the Week: Why PEPP averages mislead

Nick’s analysis (acknowledging Hugh Simons) shows increases in revenue per lawyer are having the biggest impact for most firms in the Am Law 200. Followed by increases in associate (and non-equity partner) leverage, decreases in cost per lawyer and de-equitisation. Price increases are predictably and conspicuously absent from the profit-contributing levers.

So there you have it, just as Ben Farrow’s May 2016 Has the juice been squeezed from the BigLaw business model showed in a meta-analysis. Ben concluded “this business model has a ceiling, and it’s fast approaching”.

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