Comments on: Brass Ring Getting Tarnished? http://lawshucks.com/2009/01/brass-ring-getting-tarnished/ A self-deprecating look at life in and after BigLaw Thu, 18 Mar 2010 22:47:08 -0400 http://wordpress.org/?v=2.9.2 hourly 1 By: lawshucks http://lawshucks.com/2009/01/brass-ring-getting-tarnished/#comment-43 lawshucks Fri, 09 Jan 2009 18:34:34 +0000 http://lawshucks.com/?p=393#comment-43 I agree with the sentiment but wonder whether we'll see actual change. Think about how long this model has been in place and what it's been through. 2001, 1997, 1991, all in recent memory and still the BigLaw model marches on. That being said, volatility=opportunity for those who take advantage. I agree with the sentiment but wonder whether we’ll see actual change. Think about how long this model has been in place and what it’s been through. 2001, 1997, 1991, all in recent memory and still the BigLaw model marches on. That being said, volatility=opportunity for those who take advantage.

]]> By: JT http://lawshucks.com/2009/01/brass-ring-getting-tarnished/#comment-40 JT Fri, 09 Jan 2009 16:22:05 +0000 http://lawshucks.com/?p=393#comment-40 Most areas of the economy are going to change dramatically, and law firms will be no different. The associates who are just coming into the system and the new partners are going to be slammed by what's about to happen (is happening?), but everyone is going to have to learn to be industrious. This isn't a bad thing, in the end it'll teach the younger attorneys to be quicker on their feet which will pay off in five years when 55-year-old partners are stuck in 1998 ideas of how things operate. Sucks right now, but rewriting the landscape can benefit the clever amongst us. Most areas of the economy are going to change dramatically, and law firms will be no different. The associates who are just coming into the system and the new partners are going to be slammed by what’s about to happen (is happening?), but everyone is going to have to learn to be industrious. This isn’t a bad thing, in the end it’ll teach the younger attorneys to be quicker on their feet which will pay off in five years when 55-year-old partners are stuck in 1998 ideas of how things operate. Sucks right now, but rewriting the landscape can benefit the clever amongst us.

]]> By: lawshucks http://lawshucks.com/2009/01/brass-ring-getting-tarnished/#comment-39 lawshucks Fri, 09 Jan 2009 15:49:22 +0000 http://lawshucks.com/?p=393#comment-39 Good idea. I'll see what I can find about the Oz firms. I have no idea about the background. I assume it's because I'm the admin. You might get one if you register... or you could at least give yourself a custom icon to replace that grey silhouette. Good idea. I’ll see what I can find about the Oz firms.

I have no idea about the background. I assume it’s because I’m the admin. You might get one if you register… or you could at least give yourself a custom icon to replace that grey silhouette.

]]> By: KingHippo http://lawshucks.com/2009/01/brass-ring-getting-tarnished/#comment-37 KingHippo Fri, 09 Jan 2009 15:01:54 +0000 http://lawshucks.com/?p=393#comment-37 Onions, you have some onions for demanding fancy backgrounds! Onions, you have some onions for demanding fancy backgrounds!

]]> By: Onions http://lawshucks.com/2009/01/brass-ring-getting-tarnished/#comment-35 Onions Fri, 09 Jan 2009 13:43:29 +0000 http://lawshucks.com/?p=393#comment-35 The brass ring is not "getting" tarnished; it already is. As for the lawyers managing their own business, how about an update on those law firms in Oz that went public? Most importantly, I want that fancy background for my comments, too. The brass ring is not “getting” tarnished; it already is. As for the lawyers managing their own business, how about an update on those law firms in Oz that went public?

Most importantly, I want that fancy background for my comments, too.

]]> By: lawshucks http://lawshucks.com/2009/01/brass-ring-getting-tarnished/#comment-34 lawshucks Thu, 08 Jan 2009 19:25:00 +0000 http://lawshucks.com/?p=393#comment-34 The quick answer (hence the comment, not a full-blown blog post) is "it depends." Is the buy-in an investment in an asset that will appreciate or depreciate? Can you pay cash? One of the common personal-finance rules of thumb is "never buy a depreciating asset on credit." Otherwise you get caught in a shame spiral of paying interest on disappearing value. On the other hand, if you think the firm's fortunes will improve and you can pay cash - why not? Contrary to UK law, under most firms' partnership agreements, it's slightly more difficult to oust a (true) partner than an employee, which is all a non-equity partner is anyway. You're buying yourself a bit of job security (both in the difficulty in kicking you out of the partnership and the intangible "commitment to the firm") and all you're giving up is the marginal ROE. In fact, you might take the belt-tightening as a sign that the firm is underpriced and it's an opportunity to buy in cheap. The quick answer (hence the comment, not a full-blown blog post) is “it depends.”

Is the buy-in an investment in an asset that will appreciate or depreciate? Can you pay cash? One of the common personal-finance rules of thumb is “never buy a depreciating asset on credit.” Otherwise you get caught in a shame spiral of paying interest on disappearing value.

On the other hand, if you think the firm’s fortunes will improve and you can pay cash – why not? Contrary to UK law, under most firms’ partnership agreements, it’s slightly more difficult to oust a (true) partner than an employee, which is all a non-equity partner is anyway. You’re buying yourself a bit of job security (both in the difficulty in kicking you out of the partnership and the intangible “commitment to the firm”) and all you’re giving up is the marginal ROE. In fact, you might take the belt-tightening as a sign that the firm is underpriced and it’s an opportunity to buy in cheap.

]]> By: Sugrhayzeus http://lawshucks.com/2009/01/brass-ring-getting-tarnished/#comment-33 Sugrhayzeus Thu, 08 Jan 2009 18:52:25 +0000 http://lawshucks.com/?p=393#comment-33 Riddle me this, Batman: what does the capital contribution at these firms, like CC, get you, if you are the one to make it? Is it just a buy-in for the privilege of working there, as it has been characterized in other writings cover the subject, or is this just "mass equitization" of a law firm? Someone needs to pull back the curtain on the subject. Riddle me this, Batman: what does the capital contribution at these firms, like CC, get you, if you are the one to make it? Is it just a buy-in for the privilege of working there, as it has been characterized in other writings cover the subject, or is this just “mass equitization” of a law firm? Someone needs to pull back the curtain on the subject.

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