Lawyers know best: Is it time law firms left the LLP behind?
Recent legislative changes have paved the way for new, alternative structures in law firms, a sector that was previously dominated by traditional partnerships and LLPs – limited liability partnerships.
Alternative business structures (ABSs) – which allow non-lawyers to have a financial stake in a firm – have grown in popularity throughout the 2010s, and for good reason: ABSs can promote entrepreneurship, give lawyers greater control over their working lives, and provide law firms access to more capital, should they need it.
The Legal Services Act 2007 paved the way for ABSs, and from 2012 onwards, they came under the Solicitors Regulation Authority’s (SRA) regulatory remit, further legitimising the model.
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The days of associates being promoted to partnership and remaining at that firm for their careers are, for many lawyers, an historical anachronism. Though the grass can be greener in other pastures, it is not always the case. Given the increasing mobility of partners and increasing acceptance by firms that lateral hires can be key for growth, the panel discussed the motivations for partner moves; lateral hiring strategies; what a success lateral-hire strategy looks like; factors that may cause lateral partners to fail; and how to ensure the lateral hire can benefit the firm, its partners and the lateral hire.