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Apr 27, 2023Liked by David Lat

Because of lower overhead, those partners leaving the larger firms are likely getting a bigger cut of what they're bringing in, increasing their own compensation. Can't say I blame them for making the leap!

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Yes! One of several reasons we're seeing so many of these moves. Plus fewer client conflicts (both actual and illusory). Virtual firms are also growing because they offer lower overhead and can let their partners take home more.

For certain types of practices, like billion-dollar, cross-border M&A deals, the overhead makes sense. But for other types of practices, it definitely doesn't.

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Apr 27, 2023Liked by David Lat

Agree on all points. While I know people hire lawyers not necessarily law firms, the lawyers' name power, in my opinion, carries enough prestige that they're better off forming their own boutique unless the virtual firm lets the lawyers just practice without having to run a firm. Also doubt that virtual firms provide enough associate and support staff support unless it comes out of the partners' pockets. I don't think virtual firms will ever be as prestigious as the non-virtual AmLaw 50-75 firms.

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