Perspective
Sep. 27, 2012
Getting 'real' about law firm balance sheets
It is the total equity invested in the enterprise relative to the need for short term working capital that matters, not how much more a smaller class puts in to their firm compared to "peer" firms. By Ed Reeser
Using capital wisely can be more important than having lots of capital.
As we observed in the first installment of this two-part series, a "tightening of the belt" on distributions at the equity partner rank won't necessarily by itself solve the problem of cash flow squeeze, so what can a firm do? We are seeing firms institute programs of withholding of income as "bonus pool" money for income partners, and perhaps so...
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