Look ahead and plan
Did you manage to obtain any sort of credit during the last two years? If so, congratulations. That is quite an accomplishment. If not, no worries, because not many other companies did either. That said, some good news for the coming year is that credit is expected to be more available in 2011 than it has been in several years.
More credit is just one of the major points of interest for attorneys during the next six to 12 months. Because of those increased lines of credit, much of the next year will likely include a focus on mergers and acquisitions. Some attorneys say that M&A activity increased during the first half of 2010 before slowing some during the last four months, but no matter your city or region — and Akron, Canton and the rest of Northeast Ohio are expected to be no different — M&A activity will likely be prevalent by the time the calendar turns.
“The recession has provided a number of opportunities for entrepreneurs to acquire businesses, who are looking to expand in a down market, and that’s providing more legal work for many lawyers,” Balmert says. “Some of our clients are more active and busier than I remember them being.”
Alternative fee structures and arrangements — or at least discussions about them — are also expected to increase in 2011. Some firms have provided them for years as an option, others have added them only during the last couple of years as clients asked for them, but there does seem to be a split between clients who are more open to alternative fee structures and those who hold tight to the hourly rate.
Even if you have no interest in alternate fee structures and will renew your proverbial subscription to the hourly rate, at least starting a conversation with your attorney or legal team about some other option might not be a bad idea, especially with the economy and cash flow still in flux.
“I do believe that most firms are willing to explore alternative billing arrangements these days, and that can lead to cost efficiencies for clients,” Balmert says. “But I don’t think that a desire for a lower legal spend should be the sole driver in making that decision, and certainly not without reviewing with current counsel whether there’s some way to work toward an economic arrangement that makes sense for both the lawyer and the client.”
