Major law firms are seeing a dropoff in deal work as a result of coronavirus, with practice areas affected including mergers and acquisitions and other corporate work, sources inside and close to firms tell Business Insider.
Firms with practice areas in private equity, bankruptcy, restructuring and litigation, such as Kirkland & Ellis and Latham & Watkins, are expected to fare well, while firms that are already grappling with turnover — and comparatively lower profits — may be targeted in a hiring war. The past 11 years have been relatively good to this field overall, with many of the top 100 firms increasing salaries of entry-level associates. The very top of the market pays $190,000, plus bonuses of $10,000, to graduates right out of law school.
Other deals that hadn't been inked are falling through entirely, though lawyers declined to cite specific examples that haven't been reported publicly. Joe Alexander, a senior private-equity partner at DLA Piper, told Business Insider that business is starting to slow. "Corporate is starting to slow down, no question," he wrote in an email. "They are starting to delay deals."
"It is challenging for business executives in many sectors to make bold moves at this time," he said, declining to speak publicly because he was not authorized to do so.