Big Law Firms Cut Their Way to Double-Digit Profits Growth in 2020

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Having faced many challenges in 2020, the law firm industry demonstrated its resilience and adaptability, resulting in better than expected industry performance. Expense management was a key factor driving industry average double-digit growth in profits per equity partner. And while demand declined slightly, the shift in work to more senior billers, coupled with a focus on collections throughout the year, helped drive revenue growth. Behind the averages, we saw wide dispersion across and within market segments, and particularly between the Am Law 50 and the rest of the industry. Looking forward, while there will be some headwinds, strong year-end inventory levels and positive activity momentum place the industry in a good position to start 2021.