Monday, January 5, 2009

Is high leverage model of firms set to change?

Pyramid of Cestius, Rome, ItalyImage via WikipediaOver the last couple decades, high leverage--the practice of having each equity partner supported by three or more associates or income partners--was accepted as a basic tenet of profitability. But is the pyramid an unstable structure? Our report includes a chart ranking the Am Law 100 by leverage.

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From the January Issue of The American Lawyer: Past the Tipping Point

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