That’s not how law firms work and not how this merger is structured. This at best a lateral move, with increased earning potential in comparison to what was possible in a firm bleeding lawyers and client.
There is nothing “crazy lucrative” about this. I don’t understand how you are coming to that beside mistaking this for something like a corporation selling itself for cash or stock.
A year ago that firm would have been worth hundreds of millions of dollars, at the moment it’s a fire sale. They’re almost surely losing millions on the deal.
They’re leaving basically with whatever they were already paid as a partner for the years they were there. Law firms don’t operate like or pay like traditional businesses. Partners at firms like this almost always have to be offered a partnership, and buy their way in. Some partnerships at prestigious firms can have buy-in fees upwards of a million dollars.
The partners then are paid a percentage of the business, depending on seniority and managing status. If there is no business, there is no pay. If the firm goes under, or is bought out, there is little pay because the firm isn’t worth much, if anything.
They’re basically leaving with what they’ve already squirreled away and not spent with potentially lavish lifestyles over the years.
Then why did they do it? Must have been crazy lucrative for them.
Two options really…
That the question.
Who wants that for such a law firm? Who wants to work for such a firm?
They didn’t think ahead or the consequences of their action. Wildly lucrative institutions don’t sell themselves off to competitors.
Any assumption that it was crazy lucrative is based on a need for things to make sense.
No, no - the sale wasn’t crazy lucrative for the firm, it was crazy lucrative for the partners who sold it off.
That’s not how law firms work and not how this merger is structured. This at best a lateral move, with increased earning potential in comparison to what was possible in a firm bleeding lawyers and client.
There is nothing “crazy lucrative” about this. I don’t understand how you are coming to that beside mistaking this for something like a corporation selling itself for cash or stock.
Regardless of how it’s structured, the partners at Cadwalader have to be walking away with a lot of money from the deal.
A year ago that firm would have been worth hundreds of millions of dollars, at the moment it’s a fire sale. They’re almost surely losing millions on the deal.
They’re leaving basically with whatever they were already paid as a partner for the years they were there. Law firms don’t operate like or pay like traditional businesses. Partners at firms like this almost always have to be offered a partnership, and buy their way in. Some partnerships at prestigious firms can have buy-in fees upwards of a million dollars.
The partners then are paid a percentage of the business, depending on seniority and managing status. If there is no business, there is no pay. If the firm goes under, or is bought out, there is little pay because the firm isn’t worth much, if anything.
They’re basically leaving with what they’ve already squirreled away and not spent with potentially lavish lifestyles over the years.