COVID-19’s effect on your practice check in Forum

[Anonymous User]

V40 life sciences mid level - 275 in March, 240 in April and May is on a similar pace... everyday is the same and it’s oh so brutal.

Is this general corporate or tech trans by chance? Feel free to PM if you’d prefer.

[Anonymous User]

BL IP litigation associate here. Everyone is slow. Not sure anyone is on track to hit hours. Some associates aren’t even close. We were slow before COVID. Firm has relied on IP to keep it afloat during oil slowdowns (yes, I’m in Texas) but I’m worried what will happen if neither o&g nor IP pick up soon.

[Anonymous User]

EC/VC midlevel in SV. Had 290 last month, slowing down a bit this month but still fairly busy. The end of the PPP loan rush has eased things, as has lesser M&A activity. Investors remain out there looking for opportunities, even if there's a lot more flat and down rounds than usual.

[jarofsoup]

EC/VC midlevel in SV. Had 290 last month, slowing down a bit this month but still fairly busy. The end of the PPP loan rush has eased things, as has lesser M&A activity. Investors remain out there looking for opportunities, even if there's a lot more flat and down rounds than usual.

Question what do you do if you bill 290 and they cut your salary? I am not but just want to know what you would do.

Also 290 is almost a fuck it, this is not worth it level of work.

[Anonymous User]

EC/VC midlevel in SV. Had 290 last month, slowing down a bit this month but still fairly busy. The end of the PPP loan rush has eased things, as has lesser M&A activity. Investors remain out there looking for opportunities, even if there's a lot more flat and down rounds than usual.

Question what do you do if you bill 290 and they cut your salary? I am not but just want to know what you would do.

Also 290 is almost a fuck it, this is not worth it level of work.

Firm hasn't cut associate salaries (yet) and of the best EC/VC shops in SV (or nationwide for that matter), it's definitely in the upper tier, so wouldn't exactly be yearning to lateral at the drop of a hat. Would obviously be irritated about it, although of said EC/VC shops, my firm looks like it's in a good financial situation so if they end up cutting salaries, imagine its peers will be doing so as well.

[Anonymous User]

Interesting article about Quinn here: https://abovethelaw.com/2020/05/quinn-e ... -pandemic/

How much cash on hand do big firms typically have? Let's say Davis Polk. In normal times, how much do you think? 15-20M?

[Anonymous User]

Interesting article about Quinn here: https://abovethelaw.com/2020/05/quinn-e ... -pandemic/

How much cash on hand do big firms typically have? Let's say Davis Polk. In normal times, how much do you think? 15-20M?

Heavily depends on the firm, but could be a lot more. Some V10s have $150M+ in the bank.

[Popopo2019]

Interesting article about Quinn here: https://abovethelaw.com/2020/05/quinn-e ... -pandemic/

How much cash on hand do big firms typically have? Let's say Davis Polk. In normal times, how much do you think? 15-20M?

Heavily depends on the firm, but could be a lot more. Some V10s have $150M+ in the bank.

Data Point: At an all associates town hall yesterday, chair of V10 said there was 250mm in the bank.

[Monochromatic Oeuvre]

Interesting article about Quinn here: https://abovethelaw.com/2020/05/quinn-e ... -pandemic/

How much cash on hand do big firms typically have? Let's say Davis Polk. In normal times, how much do you think? 15-20M?

All of a firm's booked profit, minus partner draws, is cash on hand until the end of the fiscal year. So it's highly seasonal. Most firms end their fiscal years in December. If associates/counsel bonuses are paid at the end of the fiscal year (as is most common), then after the profits are paid out firms only keep a nominal amount on hand, maybe just a few months' worth of expenses (I've heard of even less). But right before the profits are distributed, all of it besides the draws that have already been given throughout the year is cash on hand. So, hundreds of millions of dollars.

As has been noted ITT, some firms have profit margins thin enough that a recession really does force them to cut salaries and partner draws to keep the lights on. Quinn is not one of those firms. I have no idea why they do anything they do.

[Anonymous User]

Interesting article about Quinn here: https://abovethelaw.com/2020/05/quinn-e ... -pandemic/

How much cash on hand do big firms typically have? Let's say Davis Polk. In normal times, how much do you think? 15-20M?

datapoint we were told at our V50: $80m+ in cash on hand, plus an additional $100m LOC that can be drawn down. No debt outside undrawn LOC. FWIW, no austerity measures yet; but have a feeling they might be coming.

[Anonymous User]

Regulatory midlevel, about as busy as always (March to May should all be between 140 and 160 billables w/o BD). Firm seems to be doing as well as last year until now (as of end April).

Is the situation for regulatory in DC the same?

[HarrisonK]

How are tax practices doing?

[nealric]

How are tax practices doing?

In-house tax (not firm), but my impression is that it's a mixed bag. Deal work is completely dead right now, so tax practices that are mostly deal advisory are slow. However, the CARES act did create some advisory/planning work with things like the 5-year NOL carryback. Controversy work has likely slowed somewhat, but controversy tends to be longer term in nature, so there would still be some work- many auditors and appeals officers are still working remotely, although I doubt many new audits are being opened.

[Anonymous User]

How are tax practices doing?

V10 tax junior. As busy as ever. Restructuring and cap. markets are going gangbusters and keeping us busy. M&A is also fairly active despite Covid.

[ATXStudent]

How is the Houston market doing rn for transactional associates? Is deal flow way down / what is your take on the situation in Houston?

[Big Red]

How is the Houston market doing rn for transactional associates? Is deal flow way down / what is your take on the situation in Houston?

That's going to be really practice group specific and you might want to make a separate thread if you want to root out what O&G slowdown means

[Anonymous User]

In BL real estate (mostly origination, some equity), and things are totally dead. I'm quite junior and I know some people in my group are busy-ish, but I'm starting to think that this is a practice area that will never be the same and it may be time to try to pivot.

[QContinuum]

In BL real estate (mostly origination, some equity), and things are totally dead. I'm quite junior and I know some people in my group are busy-ish, but I'm starting to think that this is a practice area that will never be the same and it may be time to try to pivot.

"Never be the same" is a bit of an overstatement, IMO. Companies and investors will still need to buy and sell real estate. That said, it might well take a year or more for real estate deal flow to bounce back to pre-COVID levels, between the economic crash and the unprecedented public health uncertainties. If you're a first- or second-year, it wouldn't be unreasonable to consider pivoting. If you're a third/fourth-year, maybe that might lean more toward trying to ride out the slowdown?

[The Lsat Airbender]

In BL real estate (mostly origination, some equity), and things are totally dead. I'm quite junior and I know some people in my group are busy-ish, but I'm starting to think that this is a practice area that will never be the same and it may be time to try to pivot.

"Never be the same" is a bit of an overstatement, IMO. Companies and investors will still need to buy and sell real estate. That said, it might well take a year or more for real estate deal flow to bounce back to pre-COVID levels, between the economic crash and the unprecedented public health uncertainties. If you're a first- or second-year, it wouldn't be unreasonable to consider pivoting. If you're a third/fourth-year, maybe that might lean more toward trying to ride out the slowdown?

Agreed. Even if there's a brutal correction over the next 12 months and REITs get slaughtered etc. etc., there's still going to be investors who want to buy in at that new, lower price point. The industry might not repeat the run it's had since 2008, but most won't, and they're all still gonna need lawyers.

A mature-career lawyer with a lot of focus on, say, Manhattan office space, or PE deals involving brick-and-mortar retail, should probably be sweating. But a junior or midlevel who likes real estate might as well stick around.

[Anonymous User]

Regulatory midlevel, about as busy as always (March to May should all be between 140 and 160 billables w/o BD). Firm seems to be doing as well as last year until now (as of end April).

Is the situation for regulatory in DC the same?

D.C. regulatory associate as well. Billed around 160-180 the past two months, this month is slower but should end up at 120-140. BD work has exploded in anticipation of a slowdown which has made this period somewhat unpleasant.

[objctnyrhnr]

As my state’s courts gradually get back to normal and as the local fed court continues to try to avoid all delay that might otherwise be caused to this, my large market v25 biglaw commercial lit practice appears to be approaching something in the pre pandemic range. Was worried for a few weeks there when everything shut down, as were my colleagues. We still have the fortune500 clients being unusually stingy as could be expected, but it’s far from dead here.

How are other market biglaw general lit practices doing?

[Anonymous User]

As my state’s courts gradually get back to normal and as the local fed court continues to try to avoid all delay that might otherwise be caused to this, my large market v25 biglaw commercial lit practice appears to be approaching something in the pre pandemic range. Was worried for a few weeks there when everything shut down, as were my colleagues. We still have the fortune500 clients being unusually stingy as could be expected, but it’s far from dead here.

How are other market biglaw general lit practices doing?

Slower than normal but not worryingly slow. A busy month will get back on hours track. Clients are stingy on costs. Not ramping up to pre-pandemic levels yet

[Flarmanarnar]

Can someone speak to how structured finance/securitization practice groups are doing right now?

[Anonymous User]

M&A associate and basically completely dead. Maybe an hour a day on some corporate housekeeping work.

At this point part of what I'm telling myself is "how much is being paid 200k to sit at home playing video games all day" worth, even if it ends eventually.

[Anonymous User]

M&A associate and basically completely dead. Maybe an hour a day on some corporate housekeeping work.

At this point part of what I'm telling myself is "how much is being paid 200k to sit at home playing video games all day" worth, even if it ends eventually.

200k/yr