A Banner Year for Law Firms? A Different Take on the 2019 Citi Report
A Forbes contributor has a an alternative take on the results of a recent annual survey of law firm fiscal performance that touted firms’ “strongest growth in a decade.”
Legal consultant Mark A. Cohen takes a close look at the 2019 Citi Hildebrandt Client Advisory.
“While the 6.3% revenue growth of Citi’s surveyed firms is impressive, it is offset by the 5.9% increase in firm costs,” Cohen points out. “That yields a miniscule 0.4% increase in profits. Longer collection cycles, declining realization, and ‘dispersion’— the near even split between firms that see demand increase and firms that see demand decline year-to-year– tell a different story than the Report’s bullish headline.”
He writes that the report also reveals several ominous trends for firms.
