Market value

These law firms are thriving during the economic recession
These law firms are thriving during the economic recession

The global financial crisis has been tough on nearly everyone. While we gradually come to grips with just how bad, exactly, our stock portfolios are looking, there may be some strategy to be gleaned from a handful of practices that are doing particularly well in the current economic climes. So in the spirit of taking a lesson away from a bad experience, Precedent sought out some recession-savvy firms and companies to ask the simple question: how’s business?

Larry Ellis, Insolvency
Position: Associate
Firm: ThorntonGroutFinnigan LLP
Nature of business: A restructuring and commercial litigation boutique

State of affairs: “Generally speaking, we’re fairly busy even when the economy is healthy and that’s because even then you’ll have companies that run into problems…. But in this economy, there are a number of influencing factors that have been negative for a while. The fact that [these negative market factors] are lasting and cumulative means that we’re starting to see an increase in companies that require restructuring. Bad cases, of course, for the companies, but good cases for us. Even liquidations.”

Brad Allen, Proxies
Position: Senior Vice President
Firm: Laurel Hill Advisory Group
Nature of business: A shareholder communications firm that solicits proxies or tenders when people want to take over companies and need shareholder approval

State of affairs: “We just launched our business late last year. People said to us it was a crazy time to start a business, but it actually proved to be a really good time. What we found right away, because of the economic cycle and the fact that stock markets were down, is that although the takeover bids were disappearing…people resorted to doing the next best thing, which is try to replace the members of the board of their target company…It’s a busy time for us. It doesn’t last forever so we enjoy it while it’s here.”

Larry Klar, Equity
Position: Managing partner of The Succession Fund
Firm: Argosy Partners
Nature of business: A private equity fund that owns common share equity positions in a number of private companies

State of affairs: “The companies in our portfolio are all performing to different levels — some of them are extremely well-suited to manage through the challenging economic environment…. We’re like the Holiday Inn, as investors: we hate surprises. We stay close to managers and encourage them to stay close to us because it’s at these times that there will be unexpected tough issues to deal with…Those companies that do best have strong, healthy balance sheets and have nimble management teams that aren’t encumbered by bureaucracy.”

Allan Stitt, ADR
Position: President
Firm: ADR Chambers
Nature of business: Training in negotiation and conflict-resolution; and arbitration and mediation business

State of affairs: “Both arbitration and mediation pick up in tough times. Mediation picks up because people would prefer to avoid the extra cost and time involved with resolving the dispute. Arbitration is a bit different. The parts that will really pick up are in expedited arbitration…where you can get the whole thing done very quickly and inexpensively. In the case of a market crash, we would see business pick up six months to a year later. That’s certainly been our experience. I think we will see the arbitration that’s attributed to the [current economic] times hitting in a few months.”

Sheila Gibb, Family
Position: Associate
Firm:  Epstein Cole LLP
Nature of business:  Family law and some solicitors negligence work, including adoption, divorce, child custody, child support, property division, and spousal support

State of affairs: “Our firm is very busy but I don’t attribute the business to the current economic crisis. I would say that bad economic times don’t drive the practice of family law but rather that the practice of family law is better able to weather them… I would say that family law is more recession proof than other areas of law… Financial difficulties are often a source of marital difficulty. That said, we might be too early in this current crisis to see that kind of effect.”