Law Firms As A Business
You know that law firms offer their time and knowledge to clients. You know that clients are charged for this on an hourly basis. You know that minus the taxes and the fixed costs, partners then take home these profits. Simple, right? Not exactly.
The modern day commercial law firm is far more complex. Clients are unhappy with the traditional billable hour model. Legal technology has fundamentally changed the fee structure and economics of a law firm. And in practice, the profit a partner makes depends heavily on how a firm structures its profit pools. This course was designed to help you really understand the mechanics of a legal business.
Brought to you by a range of teachers, including L.M., a corporate associate at a global law firm, and Richard Tromans, founder of a management consultancy focused on legal technology, this course will provide you with an in-depth understanding of:
1. The business of a law firm, including:
- Different operating models of a law firm and how it affects client work;
- Financial metrics of a law firm - breaking down key terms like alternative fee arrangements, utilisation rate, and realisation rate; and
2. The key trends affecting the legal market in 2021, including:
- Practical challenges and opportunities arising from legal technology disruption; and
- The rising threat of cyber security issues to law firms
Ultimately if you are a candidate applying for training contracts, this course will help you stand out from the crowd. You will be able to pair your understanding of commercial news with a deeper knowledge of how it affects a firm’s profit, growth and wider strategic goals. Impress partners, not just with the insights you have on their client’s business, but with the insights you will gain from this course on their own business.
If you are a future trainee, this course will provide you with an essential understanding of your role within the business, the business dynamics of pitching to clients and your firm’s position in the market.
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StartDeep Dive: Law Firm Structures (18:41)
StartThe Core Financial Metrics of Law Firms: From Revenue to Utilisation (42:06)
StartFixed Fees and Conditional Fee Arrangements
StartQuestions & Answers (28:54)
StartAppendix - Using Companies House To Research A Law Firm