Best group in a recession Forum

[Anonymous User]

Other than bankruptcy, which groups are still very active in a recession?

[Anonymous User]

Bump

[Anonymous User]

Other than bankruptcy, which groups are still very active in a recession?

Current 3rd year, so no active experience in a recession. From what I've heard from more senior attorneys, everything will drop off except for restructuring and restructuring-related practices (i.e., M&A can be turned to distressed asset deals, litigation involving restructuring matters can help feed some litigators).

FWIW, most people I work with aren't too concerned about the risk of a major downturn, as there is a real feeling that if the floor were going to fall out that would have already happened.

[Anonymous User]

Other than bankruptcy, which groups are still very active in a recession?

Practices that can pick up bankruptcy adjacent work, like investment funds (e.g., distressed funds), also rate to be better positioned. Litigation also won't be as badly impacted as core corporate practice are (cap markets, structured finance, m&a, etc.).

[Anonymous User]

The truly countercyclical practice is bankruptcy but the other side of that is it can get very quiet during economic good times. If you're asking for the practice that seems least affected by the trend of the economy I'd probably say high-end white collar where the company or the C-suite is on the line or they're facing the prospect of e.g., a $1b penalty.

[Anonymous User]

Tax is very countercyclical as tax attorneys are involved in matters of all major corporate practices (M&A, CapM, BK, …). If you are in the tax group and focus on M&A or CapM/finance, and your firm is at least somewhat involved in BK, it’s generally a good idea to try to get involved so that you have some experience when the economy tanks.

[Lacepiece23]

Employment. More people getting fired.

[Bramwell]

It can be useful to approach this more broadly than just picking a practice area. Be open minded in your practice and always look out for how the market may be evolving. For example, if you are an M&A lawyer that only does SPACs, you had a great run for a couple years but now probably have no work. Don’t be afraid to stick your toes into adjacent practices (which may not feel natural in a big law siloed environment). Also consider whether the firm is heavily concentrated in one practice area, client or industry. More diverse client and industry base tends to be more resilient through periods of volatility.

[Anonymous User]

Criminal.

[Anonymous User]

Finance group in a firm with strong M&A and bankruptcy practices