Page 158 - 2019 - Leaders in Legal Business (n)
P. 158
MPs and COOs – 100 Largest Tony Williams1
Law Firms
Principal, Jomati Consultants
The development of the world’s 100 largest law firms has been quite amazing over the last
10 years and looks to be even more substantial over the next decade.
According to The American Lawyer figures, we now have 30 law firms with annual
revenues of more than $1 billion USD; six of those firms have annual revenues of more than $2
billion. In 2008 there were only 18 law firms that passed the $1 billion mark, one of which was
Dewey & LeBoeuf, which subsequently crashed and burned. However, in 2008 there were seven
firms with revenues of more than $2 billion,
primarily as a result of an exchange rate of U.S.
$2 : £1, which propelled the four U.K. Magic
Circle firms into that top echelon, whereas now
with U.S. $1.50 : £1, only Clifford Chance makes
that particular cut.
The total revenue generated by the 100
largest firms was $78.63 billion in 2008 and
reached $84.90 billion by the end of 2013.
Although much of this revenue growth was the
result of merger activity, it does show that most
of this group has navigated the global financial
crisis well and have in many cases improved their market position, market share, and equity partner
profitability.
It is, however, necessary to look at the drivers for this growth in law firms (especially
during a time of recession and subdued recovery for most Western economies) and to consider
how the market will develop further over the next 10 years.
Traditionally, it has been thought that there were relatively few economies of scale in a
legal business. Size brought more significant conflict issues and consumed large amounts of
partner time on “management” issues — so why the urge to become bigger?
In the last 10 years, the key drivers appear to have been:
1) Globalization;
1 Tony Williams is a principal at Jomati Consultants LLP, a U.K.-based international management consulting firm for law firms, lawyers and in-
house counsel that specializes in strategic expansions, reorganizations, and client strategies. Before founding Jomati Consultants, Tony was
worldwide managing partner of Andersen Legal and head of its U.K. practice, where he developed the firm’s international strategy. Prior to joining
Andersen Legal, Tony was managing partner of the world’s largest law firm, Clifford Chance. He was with Clifford Chance for almost 20 years
and prior to his managing partner role he was a corporate partner in London, Hong Kong and the managing partner of the firm’s Moscow office.
For his role in the orderly and controlled dissolution of Garretts following the Enron crisis, he was named “Partner of the Year” by The Lawyer
Magazine in 2002. Tony is also a founding member of Halsbury’s Law Exchange, an independent and politically neutral legal think tank that
contributes to the development of law and the legal sector.
143
Law Firms
Principal, Jomati Consultants
The development of the world’s 100 largest law firms has been quite amazing over the last
10 years and looks to be even more substantial over the next decade.
According to The American Lawyer figures, we now have 30 law firms with annual
revenues of more than $1 billion USD; six of those firms have annual revenues of more than $2
billion. In 2008 there were only 18 law firms that passed the $1 billion mark, one of which was
Dewey & LeBoeuf, which subsequently crashed and burned. However, in 2008 there were seven
firms with revenues of more than $2 billion,
primarily as a result of an exchange rate of U.S.
$2 : £1, which propelled the four U.K. Magic
Circle firms into that top echelon, whereas now
with U.S. $1.50 : £1, only Clifford Chance makes
that particular cut.
The total revenue generated by the 100
largest firms was $78.63 billion in 2008 and
reached $84.90 billion by the end of 2013.
Although much of this revenue growth was the
result of merger activity, it does show that most
of this group has navigated the global financial
crisis well and have in many cases improved their market position, market share, and equity partner
profitability.
It is, however, necessary to look at the drivers for this growth in law firms (especially
during a time of recession and subdued recovery for most Western economies) and to consider
how the market will develop further over the next 10 years.
Traditionally, it has been thought that there were relatively few economies of scale in a
legal business. Size brought more significant conflict issues and consumed large amounts of
partner time on “management” issues — so why the urge to become bigger?
In the last 10 years, the key drivers appear to have been:
1) Globalization;
1 Tony Williams is a principal at Jomati Consultants LLP, a U.K.-based international management consulting firm for law firms, lawyers and in-
house counsel that specializes in strategic expansions, reorganizations, and client strategies. Before founding Jomati Consultants, Tony was
worldwide managing partner of Andersen Legal and head of its U.K. practice, where he developed the firm’s international strategy. Prior to joining
Andersen Legal, Tony was managing partner of the world’s largest law firm, Clifford Chance. He was with Clifford Chance for almost 20 years
and prior to his managing partner role he was a corporate partner in London, Hong Kong and the managing partner of the firm’s Moscow office.
For his role in the orderly and controlled dissolution of Garretts following the Enron crisis, he was named “Partner of the Year” by The Lawyer
Magazine in 2002. Tony is also a founding member of Halsbury’s Law Exchange, an independent and politically neutral legal think tank that
contributes to the development of law and the legal sector.
143