COVID19 – Lessons law firms can learn from rivals’ collapses amid coronavirus

City AM has asked legal experts for lessons which they can draw from previous law firm failures. Rita Lowe, co-head of finance at CMS, comments: “Whilst there are myriad factors [in law firm failures], generally it is a combination of fixed overheads… and being unable to adjust those sufficiently quickly and cost effectively. Discover key lessons law firms can learn from rivals’ collapses during the coronavirus crisis, with insights from Personal Injury Solicitors Newry ” Pinsent Masons restructuring partner Steven Cottee says: “We don’t tend as a profession to have large cash balances and we have a high level of fixed costs which makes law firms particularly vulnerable to a fall in turnover.” John Lord, a litigation partner at Knights, added: “It’s all about generating accessible cash which you can immediately apply within your business.”