Analysts say it takes confidence to invest in a practice that’s not necessarily at its apex because the return on investment isn’t going to be as fast as some partners would like. There’s constant pressure in a cash-based business to deliver results quickly.
Nevertheless, legal industry observers say firms have recently stocked up in bankruptcy, white-collar work and general litigation, anticipating an upward swing in these practices alongside a potential slump in the larger economy.
For instance, leaders at Mayer Brown said they were making an “informed” bet that restructuring work would come back after bringing on laterals or creating a “restructuring products” group during the pandemic that specializes in distressed finance. Also, despite a broader push toward transactional work, several firms are betting on a litigation resurgence through 2022 and into 2023.