Law Firm Report Sample Firm NB: Data used in this sample report is for illustration purposes only Disclaimer: All information contained in this report is derived from Legal Monitor research and information available in the public domain. Worldwide Legal Research does not make any representations or warranties, expressed or implied, as to the accuracy or completeness of the data and information provided in this report. While Worldwide Legal Research has made every effort to ensure that the information in this report is correct, it does not assume any liability to any party for any loss or damage caused by the use of this report or any errors or omissions therein. Contents Financial Analysis [Date range (2008-2012)] Revenue 3 Profit 4 People 5 Profit & Loss Account 5 Underlying data table 6 Annual Profit Bridge 7 Law Firm Partner Data [Date Range (2009-2012)] Partners across all regions 8 Partners in Asia 10 Partners in Continental Europe 11 Partners in Eastern Europe 13 Partners in the Middle East 14 Partners in North America 15 Partners in the UK 17 Underlying data table 19 Lateral Partner Analysis [Date Range (2009-2012)] Lateral Partner Hires 2009-2012 20 Lateral Partner Hires 2009 21 Lateral Partner Hires 2010 22 Lateral Partner Hires 2011 23 Lateral Partner Hires 2012 24 Lateral Partner Hires - Data (2009-2012) 25 Lateral Partner Leavers - Data (2009-2012) 26 Partner Promotions Analysis [Date Range (2009-2012)] Partner Promotions 2009-2012 27 Partner Promotions 2009 28 Partner Promotions 2010 29 Partner Promotions 2011 30 Partner Promotions 2012 31 Partner Promotions - Data (2009-2012) 32 Market Tracker [Date Range (2009-2012)] Methodology 33 Industry sector data sample: Technology, Media & Telecoms 34 Industry sector data sample: Retail/Consumer 34 2 Sample Law Firm Financial Analysis Revenue - 2009-2011 [Law Firm Name] Revenue Revenue % Change Firm name 0% Addleshaw Goddard 197.00 £200.00M -3.468% 161.00 -5% £100.00M -10% -12.183% £0.00M 2008 2009 2010 2011 2008 2009 2010 2011 Revenue Per Equity Partner (Millions) Revenue % Change Per Equity Partner £2.00M 1,841,121 10.46% 10.00% £1.50M 1,555,556 0.00% £1.00M -10.00% £0.50M Firm name Addleshaw Goddard -15.35% £0.00M Allen & Overy 2008 2009 2010 2011 2008 2009 2010 2011 Ashurst Beachcroft Revenue Per Fee Earner Revenue % Change Per Fee Earner Berrymans Lace Mawer 0.24291 1.50% Berwin Leighton Paisner Bird & Bird 0.00% £0.20M 0.21353 Burges Salmon Charles Russell Clifford Chance Clyde & Co £0.10M -5.00% CMS Cameron McKenna DLA Piper Dundas & Wilson DWF £0.00M -8.22% Eversheds 2008 2009 2010 2011 2008 2009 2010 2011 Field Fisher Waterhouse GUIDANCE: Absolute numbers are provided in graphs on the left (each year runs to an Years April year end - ie, 2009 represents financial year ending April 2009) and Purchased reports will the corresponding percentage changes on the right. For all percentage include data for 2012. graphs, each year is the difference between the prior year (ie, 2009 is the percentage difference between 2008 and 2009) Sample Law Firm 3 Profit Net Profit Net Profit % Change Firm name 77.00 0% -3.45% Addleshaw Goddard -10% £50.00M 45.00 -20% £0.00M -24.68% 2008 2009 2010 2011 2008 2009 2010 2011 Net Profit Margin Actual Change In Net Proft Margin 39.1% 0.007 40.0% 0 -2 28.0% 20.0% -4 0.0% -6 -5.583 2008 2009 2010 2011 2008 2009 2010 2011 Salary Cost Salary Cost % Change 64.000 1.786% £60.00M 0% 56.000 Firm name £40.00M Addleshaw Goddard Allen & Overy £20.00M -5% Ashurst Beachcroft £0.00M -6.667% Berrymans Lace Mawer 2008 2009 2010 2011 2008 2009 2010 2011 Berwin Leighton Paisner Bird & Bird Operating Cost Operating Cost % Change Burges Salmon 58.000 5.455% Charles Russell £60.00M 5% Clifford Chance 55.000 Clyde & Co £40.00M CMS Cameron McKenna DLA Piper £20.00M 0% Dundas & Wilson DWF £0.00M -1.786% Eversheds 2008 2009 2010 2011 2008 2009 2010 2011 Field Fisher Waterhouse Freshfields Bruckhaus Deringer Avg Profit per Partner % Diff Avg Profit per Partner Gateley 5.19% Herbert Smith £600.00 £586.00 Hill Dickinson 0% Hogan Lovells Irwin Mitchell £400.00 Linklaters Years £328.00 Macfarlanes -20% Purchased £reports200.00 will Mills & Reeve include data for 2012. Nabarro Norton Rose -30.89% £0.00 Olswang 2008 2009 2010 2011 2008 2009 2010 2011 Pinsent Masons 4 Sample Law Firm People Fee Earners Fee Earners % Change Firm name Addleshaw Goddard 811.00 2.17% 800 2.00% 738.00 600 0.00% 400 -2.00% 200 -4.00% -4.90% 0 2008 2009 2010 2011 2008 2009 2010 2011 Non Fee Earners Non Fee Earners % Change 612.0 0.00% 600 -5.88% 400 420.0 -10.00% Firm name Addleshaw Goddard 200 Allen & Overy -20.00% Ashurst -20.14% 0 Beachcroft 2008 2009 2010 2011 2008 2009 2010 2011 Berrymans Lace Mawer Berwin Leighton Paisner Equity Partners Equity Partners % Change Bird & Bird Burges Salmon 111.00 6.70% Charles Russell 100 Clifford Chance Average97.00 % Profit & Loss Clyde & Co 0.00% Average % P&L Account CMS Cameron MFciKremn nnaame DLA Piper Addleshaw Goddard 50 Dundas & Wilson 2008 2009 2010 2011 Allen & Overy DWF -10.00% Eversheds Ashurst [LawAddl eshaw % Revenue 100.0% 100.0% 100.0% F1ie0ld0 F.i0sh%er WaterhoBuseeachcroft Goddard 0 -12.61% Firm Freshfields BruckhauBs eDrerryinmgearns Lace Mawer 2008 2009 2010 2011 2008 2009 2010 2011 Gateley Name] Berwin Leighton Paisner % Operating Cost 28.4% 32.4% 32.9% 36.0% Bird & Bird Burges Salmon % Staff Cost 32.5% 34.7% 33.5% 35.4% Charles Russell Clifford Chance Clyde & Co % Finance Costs -0.3% -0.1% 0.6% 0.8% CMS Cameron McKenna DLA Piper Dundas & Wilson % Profit 39.3% 33.0% 33.0% 27.8% DWF Eversheds Field Fisher Waterhouse GUIDANCE: Freshfields Bruckhaus Deringer Years Gateley The Profit & Loss Account table looks at how costs (operating, Purchased reports will Herbert Smith staff and finance) impact profit. Costs and Profits are shown as a include data for 2012. Hill Dickinson percentage of revenue which is set to 100%. Hogan Lovells Irwin Mitchell Linklaters Macfarlanes Sample Law Firm 5 Mills & Reeve Nabarro Norton Rose Olswang Pinsent Masons RPC SJ Berwin SNR Denton Squire Sanders Trowers & Hamlins Watson, Farley & Willi ams Withers Wragge & Co Financial Analysis - Data Data Year 2008 Average Net interest 2009 Fee earner Fee Other profits per Net Profit Net profit Non-fee payable/ Total Fee Firm name Year (ex Income operating equity 2010 Margin (£m) earners (receivable Earners partners) (£m) cost partner ) 2011 (PEP) (£k) Addleshaw 2008 Goddard 630.00 197.00 39.1% 77.00 612.00 56.00 £586.00 -0.50 811.00 Addleshaw Firm name 2009 602.00 173.00 33.5% 58.00 576.00 56.00 £405.00 -0.10 776.00 Goddard Addleshaw Goddard Allen & Overy Addleshaw 2010 Goddard 573.00 167.00 33.5% 56.00 460.00 55.00 £426.00 0.96 738.00 Ashurst Beachcroft Addleshaw Berrymans Lace Mawer 2011 597.00 161.00 28.0% 45.00 420.00 58.00 £328.00 1.29 754.00 Goddard Berwin Leighton Paisner Bird & Bird Burges Salmon Years Charles Russell Purchased reports will Clifford Chance include data for 2012. Clyde & Co CMS Cameron McKenna DLA Piper Dundas & Wilson DWF Eversheds Field Fisher Waterhouse Freshfields Bruckhaus .. Gateley Herbert Smith Hill Dickinson Hogan Lovells Irwin Mitchell Linklaters Macfarlanes Mills & Reeve Nabarro Norton Rose Olswang Pinsent Masons RPC 6 Sample Law Firm Profit Bridge 2010/2011 - [Law Firm Name] Profit Bridge 2010/2011 Firm name Addleshaw Goddard £0.00 Allen & Overy -£0.33M Ashurst -£1.00 Beachcroft -£1.00M Berrymans Lace Mawer Berwin Leighton Paisner -£2.00 Bird & Bird Burges Salmon Charles Russell -£3.00 Clifford Chance -£3.00M Clyde & Co CMS Cameron McKenna -£4.00 DLA Piper Dundas & Wilson DWF Eversheds -£5.00 Field Fisher Waterhouse Freshfields Bruckhaus Deringer Gateley -£6.00 -£6.00M Herbert Smith Hill Dickinson Years Hogan Lovells -£7.00 Purchased reports will include data for 2012. Irwin Mitchell Linklaters Macfarlanes -£8.00 Mills & Reeve Nabarro Norton Rose -£9.00 Olswang Pinsent Masons RPC -£10.00 SJ Berwin SNR Denton Squire Sanders -£11.00 -£11.00M Trowers & Hamlins Watson, Farley & Willi ams Withers Fee Income - Staff Costs - Operating Costs - Finance Costs Profit Wragge & Co GUIDANCE: The Profit Bridge example above shows that between 2010 and 2011, the firm’s profit’s decreased by £11m. This was a result of a £6m decrease in ‘Fee Income’, a £3m decrease in ‘Operating Costs’ (a negative value on any of the cost lines indicates that costs have increased), a £0,33m decrease in ‘Finance Costs’ and a £1m increase in ‘Staff Costs’. Sample Law Firm 7 Law Firm Partner Data All Offices - Weighted Value Clifford Chance Select Measure Weighted Value Weighted Value Banking & Finance 194.8 Region Show All Africa Corporate/M&A 158.3 Asia Pacific Continental Europe Litigation & Arbitration 69.7 Eastern Europe Middle East Real Estate & Construction 44.3 North America South America Tax 31.5 UK Law Firm Insolvency 18.7 GUIDANCE: Addleshaw Goddard Allen & Overy Antitrust/Competition, EU & Trade 12.7 This bar chart shows the number of partners that the sample firm has across practice areas and Ashurst geographical locations as of January 2011. Berrymans Lace Mawer Employment & Pensions 11.8 Berwin Leighton Paisner Weighted value: each partner has a value of 1 - so Bird & Bird Insurance 6.0 if they specialise in 2 practice areas, for example, Burges Salmon they would have a weighted value for each practiceC harles Russell Intellectual Property 4.8 area of 0.5.