2016
Law Firm
Leaders
Survey Los Angeles
EXECUTIVE SU M MARY
2016 LAW FIRM LEADERS SURVEY LOS ANGELES:
MORE LAW FIRM MERGERS AHEAD
88% report they
42% are open
64% want to
75% are smaller
were approached
to considering a
double down on
than their most
to combine with
combination with
the West Coast.
significant
another firm in
another firm in the
But respondents
competitors and
the past year. L.A.
next three to five
also want to grow
84% expect a more
remains a sought-
years. Of these,
nationally in New
competitive market
after growth
70% indicated
York (24%),
for sought- after
destination.
interest in a
Washington, D.C.
talent
transformational
(16%), Chicago
combination with a
(12%) and Seattle
larger or similarly-
(12%).
sized firm.
ABOUT
• Survey respondents were exclusively managing partners and other senior leaders of L.A. law firms ranging in size
from 20 to 200 attorneys.
• The objective was to learn about the outlook that respondents have for the future, including the nature and extent
of their growth aspirations.
• Of the nearly 70 firms who fit the geographic and headcount filters, over 1/3 contributed to the survey results.
• The survey was conducted in the second half of 2016.
• 90 attorneys is the average headcount for respondent firms.
• 75% of the average respondent firm’s headcount is based in greater Los Angeles and 93% of firm headcount is
based in California.
• 44% of the average respondent firm’s headcount is focused on Litigation, followed by Real Estate and Corporate,
at 20% and 12%, respectively. • 64% of respondent firms were ranked by Chambers in practice areas including Real Estate, Construction, Media &
Entertainment, Bankruptcy/Restructuring, Litigation and Environmental. WHAT FOLLOWS ARE HIGHLIGHTS FROM THIS YEAR’S REPORT.
For more information, contact Kent Zimmermann at 312-810-8008 or [email protected]
or Peter Zeughauser at 949-878-7444 or [email protected].
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1. When thinking about your firm in 2016 vs. the overall law firm environment in L.A., are you?
ENVIRONMENT GENERALLY FOR
LAW FIRMS IN L.A.
YOUR FIRM
20%
48%
80%
52%
Optimistic
Concerned
2. Do you expect that your firm’s Revenue Per Lawyer (“RPL”) will increase in 2016 versus 2015?
29%
Same or lower
51%
54%
1-5%
5-10%
10%+
13%
4%
0%
10%
20%
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30%
2
40%
50%
60%
3. Which of the following practices/ industry sector teams would you like to grow or
add in the next 3 to 5 years?
72%
Litigation
Labor and Employment
40%
Real Estate
40%
Transactional
40%
5
Healthcare
36%
28%
Other IP (Excluding Patent Litigation)
20%
Energy
12%
Other
Tax
4%
Patent Litigation
4%
0%
10%
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20%
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30%
40%
50%
60%
70%
80%
4. Which of the following practices/ industry sector teams would you like to grow or
add in the next 3 to 5 years?
68%
San Francisco
36%
New York
24%
Orange County
24%
LA (downtown)
16%
16%
LA (west)
Silicon Valley
16%
Washington, D.C.
16%
Chicago
12%
Seattle
12%
Austin
8%
Sacramento
8%
San Diego
8%
Boston
4%
Houston
4%
Miami
4%
Philadelphia
Dallas
Atlanta
0%
10%
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20%
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30%
40%
5. Do you expect that in 2016 the market for sought-after talent will grow more competitive?
16%
84%
YES
NO
6. In the past year, has your firm been approached to combine with another firm?
12%
88%
YES
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5
NO
7. Would you consider a combination with another firm within the next 3-5 years?
16%
42%
Interested
84%
Not Interested
0%
10%
58%
20%
30%
40%
50%
60%
70%
8. Of the firms interested in combining, what size of combining firm would you consider?
Smaller
30%
70%
Transformational
combination with
a similarly-sized or
larger firm
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9. What would be your top three objectives if you combine with another firm?
Putting the firm on a long-term trajectory of
stability
52%
Increasing profitability
48%
Diversifying practice areas outside of your
core practice focus
24%
Enhancing competitive position relative to
larger competing firms
24%
Expanding service offerings to clients
24%
Increasing the strength of the firm's brand
among clients and talent
24%
Ensuring generational leadership transition
20%
Growing headcount and top line growth
16%
Increasing the resources the firm needs to
attract and retain sought-after talent
12%
Expanding geographic footprint
8%
Other (please specify)
8%
0%
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10%
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20%
30%
40%
50%
60%
10. What are the three biggest challenges facing your firm in the next 3 to 5 years?
Increasing competition for clients, including
from full service firms and others
Transitioning leadership to the next
generation
64%
16%
42%
60%
Transitioning client relationships to the next
generation
56%
84%
58% 44%
Increasing downward rate pressure
32%
Softening demand from clients
Increasing competition for top talent,
including from full-service firms and others
20%
Other (please specify)
4%
0%
10% 20% 30% 40% 50% 60% 70%
11. How would you describe the headcount of your firm relative to your most significant
competitors?
8%
17%
75%
Smaller
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~Same
Larger
12. What are your three highest priorities for your firm in the next 3-5 years?
Building a firm that will be more stable for
the future
56%
Hiring sought-after laterals and groups
56%
Growing breadth and depth to become more
preeminent in the minds of clients and talent
48%
Growing market share by growing headcount
and gross revenue
48%
Upgrading the firm’s client base
24%
Diversifying into other practice areas
20%
Expanding to new geographies
12%
Other (please specify)
12%
0%
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20%
40%
60%
ABOUT
2016
Law Firm Leaders
Survey Los Angeles
The 2016 Law Firm Leaders Survey (Los Angeles) was
sponsored by leading law firm consultancy, Zeughauser Group.
For more information, contact Kent Zimmermann at 312-810-8008 or
[email protected] or Peter Zeughauser at 949-878-7444
or [email protected].
To learn more about Zeughauser Group, visit www.consultzg.com.
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