The Paycheck Protection Program was meant to be a short-term boost to help sustain businesses and workers through the immediate uncertainty of the coronavirus crisis. But the pandemic shows no signs of ending soon, and midsize law firm leaders are seeking to stabilize and plan for what comes next.  Mary K Young observes that revenues for most firms appear to be down 8% to 10% compared with expectations—a substantial drop-off, but not quite as drastic as some of the most distressing projections being tossed about this spring. She suggests that PPP loans should be considered simply as one component of a firm’s annual revenue for 2020. According to Young, building a manageable budget is no easy task with so many open questions swirling around the economy, but the approach is simple: hope for the best, plan for the worst.

Recent criminal charges against former eBay employees show how bad things can get when employees are not encouraged to step forward and report unethical behaviors. In this article, Alex Dimitrief says employees are motivated to raise concerns when leaders set positive examples and unequivocally welcome the scrutiny of principled investigations of alleged misconduct at senior levels, the polar opposite of the Trump administration’s firing of inspectors general and unseating of the U.S. Attorney in New York.

In 2019, 28% of respondents to a survey by the Corporate Legal Operations Consortium said they shifted more work in-house, compared with 20% who outsourced more legal work.  Industry experts predict this trend will continue long after the pandemic crisis wanes because of cost savings and the increasing sophistication of corporate teams.  Alex Dimitrief sees this trend as an opportunity for firm leaders to hone in on specialized work where they can deliver great value to in-house departments in a way that isn't cost ineffective to a company.

Kirkland & Ellis has brought in nearly $100 million this year representing distressed retailers and other large, public companies in a rash of mostly pandemic-related bankruptcies. The firm represents the debtor in 11 of 24 large, public bankruptcies this year.  Kent Zimmerman observes that there’s a widely held perception that Kirkland has one of the best restructuring practices in the world. The high demand for the firm's bankruptcy practice is another example of how it can really pay off to be among the best in chosen areas of focus.

Mary K Young and Alex Dimitrief, via a webinar, will examine what is on the minds of General Counsels and how best to communicate with and serve them in light of the challenges they are facing with COVID-19.  Mary K  and Alex  will hold a conversation that taps into Alex’s unique understanding of what in-house counsel are facing. Alex will draw on his experience helping to guide General Electric through the 2008 global recession among other crises.

The conversation will include a discussion of:

• What General Counsels are thinking about during this crisis and what their highest priorities are
• Where relationships with law firms rank on a GC’s list of priorities during a crisis like this and what this means for law firms
• Things law firms can do to make a good and long-lasting impression on their clients and what law firm relationship partners should avoid doing
• How marketing and business development staff can help their firms navigate this pandemic
• Types of communications from law firms that in-house counsel welcome and types to be avoided

June 9, 2020 - 5:00 pm to 6:00 pm

To register for the webinar, please visit the LMA Caring for Clients webpage.

America’s blue chip companies issued record amounts of debt in March and April, powering a renaissance for the often overlooked Big Law practice that helps companies issue bonds, and helping some law firms avoid layoffs and pay cuts.  Kent Zimmerman observes that capital markets groups in many firms are now outperforming private equity, which is a reversal of what many firms saw before the crisis. and that it won't be long before private equity comes back. It’s just a question of when.

Alex Dimitrief discusses ten lessons he learned at General Electric during the financial crisis and other periods of angst about how general counsel and their teams can help their companies navigate the coronavirus pandemic.

Kirkland & Ellis’ new chairman Jon Ballis has wasted little time making his mark, poaching a rising star dealmaker away from one of Big Law’s most untouchable firms this week, despite a global pandemic slowing the economy and scaring rivals away from making big-dollar hires.  Kent Zimmerman sees the move as a demonstration of the chairman's commitment to continue the firm’s long-term investment in building out M&A.

To deal with economic uncertainty, industry adviser Kent Zimmermann said Am Law 100 firms are seriously considering numerous meaningful cost-cutting options, including cutting partner draws, and are predicting a modest decline in revenue.

Big Law has been anticipating an uptick in bankruptcy and restructuring work. Thanks to the COVID-19 pandemic, it may be coming sooner than expected.  Mary K Young comments on the challenges for lawyers working from home and those firms best positioned to handle the anticipated increase in bankruptcy cases.