Yesterday, ALM released its financial summary for the AmLaw 200. (The AmLaw 200 consists of firms whose gross revenue is lower than that of the top 100 firms but above that of firms 200 and down. I previously discussed ALM’s findings concerning the financial picture of the AmLaw 100). ALM summarized the results yesterday in a webinar held by Gina Passarella, Editor in Chief of the American Lawyer, Ben Seal, an ALM reporter, and Nick Bruch, ALM analyst.
The results: like Sergio Leone’s old spaghetti western film, the financial status of the AmLaw 200 can best be described as some good, some bad and some really ugly. First, as Passarella, Seal, and Bruch were quick to point out, the AmLaw 200 is a really diverse group of firms. It includes smaller boutique type firms, lots of general corporate practice firms, some local firms, and some regional firms. (My old law firm, Frost Brown Todd, is in the AmLaw 200 and was a regional firm with offices in eight states).
So, generalizations and sweeping statements are hard. But, Passarella, Seal, and Bruch were able to find patterns that suggest that the general practice, “be all things to all persons” firms many of whom are in the AmLaw 200 may face some particular challenges in the near term. I would add in my view there are challenges across the board for mid-sized AmLaw 200 firms.
The Good
The good news is that the AmLaw 200 showed the best growth overall since the great recession. 3.1% growth in revenue, for example, was the best since 2012. 2.9% growth in net income. 2.6% growth in revenue per lawyer more than kept pace with inflation. Some of the AmLaw 200 did very, very well indeed in 2018. On the surface, the