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18 ¦ DECEMBER 28, 2020 NEWS

¦ From PANDEMIC on PAGE 17
the combination of Faegre Baker Dan-
iels and Drinker Biddle & Reath.
While instituting flexible fee ar-
rangements has played an important
role in firms maintaining close rela-
tionships with clients throughout the
pandemic, firm leaders said for the
most part they had returned to normal
by the closing weeks of 2020, with the
exception of a few more economically
precarious practice areas.
G. Mark Thompson, president and Photo: fizkes/Shutterstock.com

CEO of Marshall Dennehey Warner Coleman & true in 2020, Hildebrandt said, due in large part to
Goggin, said the “vast majority” of his firm’s clients the reduction in expenses that came with the shift
that requested payment discounts and deferrals have to remote work, combined with a diverse set of
returned to pre-COVID payment agreements. The high-performing practice areas, like health care and
firm’s hospital clients and municipal government bankruptcy.
clients were among those that asked for discounts “The way the large firms have performed is actu-
and deferrals on their fee payments as a result of the ally pretty remarkable,” Hildebrandt said. “It turns
pandemic and its financial impacts. out as the last quarter came about, many of the prac-
Thompson said while the firm’s hospital clients— tices were showing a return, like M&A and private
which requested flexible fee arrangements due to a equity. Most firms at the end of the year are going to
downturn in elective surgeries amid an inundation have increased revenue or at least the same revenue,
of COVID-19 patients—have returned to their pre- and profits are going to be very high.”
COVID payment rates, Marshall Dennehey’s base of Some industry observers said firm leaders may be
municipal government clients haven’t yet returned looking to hold onto partner distributions heading
to pre-COVID fee arrangements as a result of finan- into 2021 so they can preserve cash flow into the
cial distress. first quarter, which is historically a lower-perform-
“That is going to remain a problem going for- ing period—recession or not.
ward,” Thompson said. Jeff Lowe, global practice leader of legal search
Thompson added that one of the ways Marshall firm Major, Lindsey & Africa, said many firms are
Dennehey has braced itself for economic uncertain- less concerned about end-of-year cash flow than
ty is having a diversified set of practice areas. they are about setting themselves up financially for
“That’s given us a competitive advantage that we’re a successful 2021.
hoping to leverage and expand moving forward,” he “If you’ve already had a great year, it just puts
said. pressure on your next year,” Lowe said. “They would
Brad Hildebrandt, chairman of Hildebrandt rather know they have accounts receivable coming
Consulting, said the majority of practice areas that in in January when it’s going to count toward next
struggled as a result of the pandemic-induced reces- year. It’s sort of like starting the new year with a head
sion—like M&A work, business transactions and start.”
in-person litigation—have successfully rebounded ¦

by the fourth quarter as attorneys and their clients Justin Henry covers business news and trends at
adapted to a virtual work environment. law firms, with a particular focus on the Pennsyl-
The legal industry is historically one of the fast- vania market. Reach him at [email protected] or
est to rebound from a recession, and this remained on Twitter @jstnhenry87

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