An interesting article from consultant Mark Gould suggesting that the perceived strength of partnership - commitment to the business - could actually be a fundamental weakness when it comes to keeping alive law firms that an external funder would have give up on.
As the global financial crisis bit, and the regulatory landscape shifted for law firms, there was a sense that the coming years would see the collapse of a significant number of firms. That doesn’t seem to have happened. There have been a few notable failures (often due to specific local issues, rather than the market conditions), a few mergers and acquisitions, and some stagnation or downsizing. On the whole, though, traditional law firms have survived with often minimal changes to the way they do business. This fact may be attributable to the generally slow pace of change in the legal sector or to the fact that new legal businesses have still to make a real dent in the market. I think there is another factor that needs our attention — firms survive because people keep them alive