With up to 20% of Am Law 200 ‘badly weakened,’ will more firms fail? (video)
Posted Apr 25, 2013 9:27 AM CDT
By Lee Pacchia
A substantial percentage of the nation's largest law firms enter the sixth year of the Great Recession "badly weakened," and more firms are expected to fail, according to law firm consultant Kent Zimmermann of the Zeughauser Group.
Their problems boil down to "too many attorneys for too little work," he tells Bloomberg Law's Lee Pacchia. Zimmermann says firms should be concerned when average billable hours fall below 1,600 for two consecutive years and when realization rates—the percent of bills the firm collects—fall below 90 percent.