More big firm economics

“Will the Balloon that is Big Law Bust?”

http://stayviolation.typepad.com/chucknewton/2007/01/will_the_balloo.html

“Big Law does not represent consumers, generally. It does not represent small business, and often it does not represent medium size business. Big Law represents Big Business. So, Big Law is competing with more lawyers to cover a finite number of clients who can afford to pay the millions and millions of dollars Big Law requires to feed its ever increasing lawyers, staff and landlords.

And, all of this comes at at a time when civil lawsuits are falling in traditional areas. The trend of denying consumers rights to pursue companies has to have an impact. ”

But–this assumes that the big business “pie” won’t grow through taking business from smaller and medium sized firms, soaking up consumer surplus, gaining monopoly power, or any number of tactics. See CBS’ purchase of lastfm for an example of big business buying potentially independent companies, or see Google’s acquisitions of any number of smaller companies.

Hmm…

Also see:

Rapid Growth Can Outrun a Law Firm’s Cash

http://www.morepartnerincome.com/blog/_archives/2007/6/13/2992555.html

and

Slow Growth vs. Law Firm Mergers

http://www.morepartnerincome.com/blog/_archives/2007/1/22/2671232.html

Advertisements

One Response

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: