Edge International

Edge International Review

Low leverage: A low road to ruin for law firms?

A truly worrisome trend is spreading from American law firms throughout the world: institutionalized low leverage. Many partners welcome the higher profits and managerial relief this trend produces. But in the longer term, this short-sighted policy threatens serious damage to firms, clients, and partners themselves.

Lawyers in other countries carefully monitor the U.S. legal market, sometimes regarding it as a trendsetter and even a model. In recent years, however, a U.S.-led trend to-wards lower average levels of leverage could have serious-long term consequences for that market and any others that follow it. This has implications for the legal profession, for firms, for partners, and importantly, for clients.

Sean Larkan
Author

Edge Principal Sean Larkan is a former corporate/tax lawyer with extensive experience in conference and retreat presentation and facilitation. He is the author of Brand Strategy & Management for Law Firms.