Law Firms Recruiting Business Executives Gain a Competitive Edge

Competition among law firms to bring in business and recruit top talent has never been more intense as firms grapple to differentiate themselves to attract new, and retain existing, clients.

Some firms have approached this challenge by bringing on senior legal executives from various industries, financial institutions, and government agencies to enhance their practices in a client-oriented manner. A survey published in March by BTI Consulting Group, “The Stark Divide Driving Profit or Stranglehold for Law Firms,” demonstrates that clients are looking for advice that addresses the full range of their business realities.

As attorneys who joined a firm after years of corporate executive experience, we have some collective learnings and experiences that firms and counsel of all backgrounds may wish to consider in delivering client service.

Trusted business adviser. Clients appreciate practical, business-minded recommendations that go beyond merely outlining the legal issues. They find it most helpful when their adviser accounts for the business context in which the matter is occurring, including the strategic and legal goals of all parties around the table.

In an M&A deal, for instance, the client needs to be advised on M&A law, plus tax implications, financing considerations, dispute resolution, regulatory impacts, and employee matters.

Where it makes sense, business-focused legal advice can include how to proactively progress transactions and other alternative strategic initiatives. Clients appreciate their outside counsel understanding exactly their position and offering advice on how to reach their objective.

Critical business issues. Law firm partners are best positioned if they know how to “see around the corners” and assemble the “win team” for particularly sensitive matters.

The BTI survey pointed out the primacy of dealing with transformational evolution. Actual C-suite and boardroom experiences—whether on the client side or significant experience advising in that setting—are valuable perspectives law firm partners can offer clients.

Opening channels for clients. Law firms that bring clients new opportunities and solutions are at a significant advantage.

These can span introductions to potential investments, acquisitions, or divestitures; investors or acquirors; merger or joint venture partners; board members; industry thought leaders; and public relations, crisis-management, and lobbying advisers. Law firm partners who have held executive positions in industry roles are well-positioned to make these connections.

Bet the company advice. All time-tested companies go through periods of transformation. Lawyers who have participated and/or helped lead strategic planning at companies or non-legal firms can advise companies how to focus on organic and inorganic growth to stimulate transformation—and how to use their networks to best accomplish these transformations.

Recruiting. Law firms that espouse a business-first approach, through their business-trained partners, will be able to recruit top talent from outside of law firms, including public and private companies, government, and other advisory firms. Lawyers with experience on the client side also can impart lessons from a client mindset to associates and partners.

Efficiency in billing. Law firm partners who have been clients may possess unique insight into how clients may view law firm billing from both budgetary and success perspectives. From our prior positions, we also sometimes tell clients not to start spending on outside counsel until the optimal time.

Law firms that offer the most sophisticated advice from a variety of perspectives are highly differentiated. And counsel with deep in-house operational experience are uniquely positioned to provide perspectives and solutions, especially in the most critical situations.

This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law and Bloomberg Tax, or its owners.

Author Information

Mitchell Raab is partner and chair of Olshan Frome Wolosky’s corporate/securities law group. He previously structured and negotiated private equity and distressed debt investments for a hedge fund.

Edward Taibi is partner in Olshan Frome Wolosky’s corporate/securities law group. He is a former corporate executive who worked across legal, transactional, business development, and operational responsibilities in a wide spectrum of industries.

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