Head of Advisory Services, Law Firm Group
Jeff Grossman, Head of Business Development, Law Firm Group
August 28, 2019Posted InLaw Firm Group
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The legal industry should see relatively good performance in 2019, but it will be a challenge to see a repeat of 2018’s strong results.
We are pleased to announce the release of Citi Private Bank Law Firm Group’s Q2 2019 Quarterly Flash Report, which provides an overview of current financial trends in the legal industry, as well as forward-looking insight. Our results are based on data collected through our Quarterly Flash survey of 191 law firms: 77 Am Law 100 firms, 54 Am Law Second Hundred firms and 60 niche/boutique firms. Thirty-six of these firms fit our definition of either international (less than 25% but more than 10% of lawyers based outside the United States) or global (at least 25% of lawyers based outside the United States).
We saw improvement, albeit modest, in industry performance from the first quarter results to the first half of 2019, but so far it’s a different year than last year. With marginal demand growth, and a continued lengthening of the collection cycle, 2019 has reverted to a rate story. Meanwhile, expenses have continued to grow at a faster pace than revenue, placing pressure on margins. Looking ahead, the back half of the year should benefit from strong inventory balances at the midyear point. It will be a challenge for the industry to see a repeat of 2018’s strong performance in this year’s results, but expect it to be a good year relative to earlier post-recession years.
To read more about our findings, please refer to Law Firm Margins Tighten as First-Half Expenses Outgrow Revenue an article authored by Citi Private Bank’s Gretta Rusanow and Jeff Grossman in The American Lawyer.1
For more information about Citi Private Bank’s Quarterly Flash Reports, please contact us.
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