Out-of-state law firms generated nearly $4 billion in revenue from their Texas operations last year, which is more than the Texas headquartered firms made, according to new numbers from “The Texas Lawbook 50.” The exclusive data finds that 40 non-Texas firms are still increasing market share, as lawyer headcounts and revenue-per-lawyer rising at above-average rates in 2020. The Texas Lawbook has an in-depth analysis.
Closely Watched Revenue Per Lawyer Up 6th Year in a Row in Texas
There’s a new king of revenues per lawyer in Texas. For the first time ever, two law firms operating in Texas had RPLs of $1.8 million or more in 2020.
The Texas Lawbook 50 ranking of corporate law firms in Texas shows 21 firms achieved an RPL of $1 million or more last year, but only three of them have Texas roots.
The Texas Lawbook has the exclusive data and the details.
Overcoming Pandemic Fears, Firms Grew Texas Revenues
One year ago, corporate law firms in Texas feared financial disaster as they faced the Covid-19 shutdowns. Instead, three-fourths of The Texas Lawbook 50 largest law firms operating in Texas had higher revenues in 2020 than in 2019. Two-thirds posted record revenues, including several based in Texas. Six law firms grew their Texas revenues by 30% or more. The new data shows Texas businesses facing crises relied on their lawyers more in 2020 than ever before.
In a ‘Watershed Event,’ a New No. 1 in Texas Revenue
For the first time in decades Baker, Botts, Fulbright, Vinson and Elkins are not in the name of the top revenue generating corporate law firm in Texas. Vilified and envied for their aggressive recruiting practices and phenomenal growth, a non-Texas-based law firm increased revenues by 35% and headcount by 22% in 2020, conquering the top spot in The Texas Lawbook 50, our annual ranking of corporate law’s Texas revenues. How did they do it? It is all in the numbers. The Texas Lawbook has the in-depth report.
Pandemic Hampered Hiring in 2020, Texas Lawyer Headcount Flat
The top 50 corporate law firms operating in Texas added an average of one lawyer per firm in 2020. Firms now flush with business are worried about overworking their lawyers and are keen to hire new lawyers in 2021, but the talent just isn’t available. Of course, even one new face is more than most industry insiders anticipated a year ago as the Covid-19 pandemic and sinking oil prices plunged the economy into recession. The Texas Lawbook has the data and an in-depth report.
Lateral Hiring Fell in 2020 – You Can Probably Guess Why
Exclusive new data shows that the pandemic put a deep chill on the overheated Texas lateral market last year. Not only did firms stop recruiting, but lawyers stopped answering. But analysis shows it didn’t solve the long-term core problem: too much demand for too little talent in Texas. The result: $250,000 signing bonuses. The game of musical chairs is back.
Pandemic Finances – From Fear to Confidence (Part 3)Lawyers Plan to Put New Skills to Work
How would the COVID-19 pandemic have disrupted the legal business before laptops and the internet – an era within the living memory of some lawyers still practicing, when secretary-typed documents, wall-wired telephones and telexes or faxes were the main alternatives to face-to-face engagement. Would lawyers have taken foolish risks with their health – just to make a living? Would communications obstacles shut down legal practices and squeeze revenues enough to cause some firms to fail? The Texas Lawbook takes a look.
Pandemic Finances – From Fear to Confidence (Part 2)The Saving Grace: Technology and Firm Culture
Texas corporate law firms salvaged their 2020 revenues because of strong demand from clients trying to navigate a perplexing business environment and a surprising capacity, heretofore hidden or rarely called upon, to supply those services remotely. Even though firms leapt into it literally overnight with no time to plan and prepare, remote working proved effective and efficient last year.
“The pandemic impacted how we did business much more than the business we did,” said King & Spalding’s Houston office leader Tracie Renfroe.
Pandemic Finances: The Charts
2020 Revenues v. 2019 More or Less Than Expected? Pandemic or Oil? Revenues per Lawyer Above $1 Million Revenues per Lawyer Below $1 Million Profits Per Partner: Top 13 Profits
Pandemic Finances — From Fear to Confidence (Part 1) In 2020, Texas Firms Dodge Worst Fears
Eleven months ago, law firm leaders looked into the abyss. Covid-19 had shuttered offices. Oil prices had plunged. Unprecedented disruptions loomed for corporate clients. The law firms feared drastic declines in revenues, wiped-out profits and painful layoffs.
The Texas Lawbook surveyed 26 law firms on what really happened during the pandemic. In the first of a three-part series, The Lawbook provides an advanced look at 2020 Texas law firm finances and operations. “All of us should be on bended knee, giving thanks,” said Jackson Walker’s Wade Cooper.