Baker & McKenzie's results for 2012/13 are the latest in a string of strong results published by large global firms, and show that it has achieved record turnover of over US$2.4bn.
The turnover figure is 5% up on the previous year. Profit is up by 9% to $862m, and equity partners are earning an average of $1.2m each, which is 10% more than last year and jolly handy, thank you.
Asia Pacific was clearly the star of the show, with revenue growing by 28% in the region and 60 lateral partners being recruited in the last year alone. A spokesman for the firm provided an insightful analysis by rolling out the usual guff about being client-driven, keeping an eye on costs and investing in talent.
It seem clear that global firms are generally doing rather better than those with a more UK / European focus: Freshfields, Linklaters and DLA Piper all posted very decent increases in turnover and profits. And although things weren't quite so bouncy at A&O and Clifford Chance, their partners are still making over a million a year.
But the rest of the market is generally pretty squeezed and not finding it so easy. Addleshaws and BLP were down, Manches is a car crash and partners at Trowers & Hamlins are resorting to hunting down the back of the sofa. There are exceptions of course, and high end boutique firms such as MacFarlanes are performing very well.
However the ability to access the most profitable global deals, and the natural hedging that comes with a global operation is looking increasingly attractive. SJ Berwin has just announced its sort-of-merger with KWM: expect more consolidation between larger firms to come.
Tip Off ROF
The turnover figure is 5% up on the previous year. Profit is up by 9% to $862m, and equity partners are earning an average of $1.2m each, which is 10% more than last year and jolly handy, thank you.
Asia Pacific was clearly the star of the show, with revenue growing by 28% in the region and 60 lateral partners being recruited in the last year alone. A spokesman for the firm provided an insightful analysis by rolling out the usual guff about being client-driven, keeping an eye on costs and investing in talent.
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A happy baker yesterday |
It seem clear that global firms are generally doing rather better than those with a more UK / European focus: Freshfields, Linklaters and DLA Piper all posted very decent increases in turnover and profits. And although things weren't quite so bouncy at A&O and Clifford Chance, their partners are still making over a million a year.
But the rest of the market is generally pretty squeezed and not finding it so easy. Addleshaws and BLP were down, Manches is a car crash and partners at Trowers & Hamlins are resorting to hunting down the back of the sofa. There are exceptions of course, and high end boutique firms such as MacFarlanes are performing very well.
However the ability to access the most profitable global deals, and the natural hedging that comes with a global operation is looking increasingly attractive. SJ Berwin has just announced its sort-of-merger with KWM: expect more consolidation between larger firms to come.