Law Firm Finds New Life, Not Death, in Bankruptcy Reviewed by Momizat on . A First: Law Firm Finds New Life, Not Death, in Bankruptcy  The Wall Street Journal's Law Blog Jacqueline Palank reports: A South Florida law firm recently used A First: Law Firm Finds New Life, Not Death, in Bankruptcy  The Wall Street Journal's Law Blog Jacqueline Palank reports: A South Florida law firm recently used Rating:
You Are Here: Home » Mergers and Acquisitions/Exit Planning » Law Firm Finds New Life, Not Death, in Bankruptcy

Law Firm Finds New Life, Not Death, in Bankruptcy

A First: Law Firm Finds New Life, Not Death, in Bankruptcy 

The Wall Street Journal’s Law Blog Jacqueline Palank reports:

A South Florida law firm recently used bankruptcy to do something no one in the legal industry has done before: sell itself to another firm.

Companies across corporate America, from Blockbuster to General Motors, have sought court protection while they try to sell continuing businesses to potential white knights. But until last week, law firms usually used bankruptcy to shut down.

So the $7.8 million cash-and-debt sale of midsize law firm Ruden McClosky out of bankruptcy to fellow South Florida law firm Greenspoon Marder made legal and bankruptcy history, as I reported in this WSJ story. What’s more, the deal will likely inspire other struggling law firms to turn to bankruptcy as a place to find new life rather than a place to die, restructuring professionals say.

That’s because law firms are facing unprecedented financial pressures, brought on by the economic downturn and fierce competition. Past fixes, from layoffs to mergers, are no longer enough to keep the lights on and save jobs.

“I am seeing much greater interest on the part of law firms that are experiencing financial stress to consider ‘out of the box’ solutions to their financial dilemmas, including bankruptcy,” says Bill Brennan, a principal with legal consulting firm Altman Weil. “I expect that this will become much more common in the very near future.”

The National Association of Certified Valuators and Analysts (NACVA) supports the users of business and intangible asset valuation services and financial forensic services, including damages determinations of all kinds and fraud detection and prevention, by training and certifying financial professionals in these disciplines.

Number of Entries : 1593

©2017 NACVA and the Consultants' Training Institute • (800) 677-2009 • 5217 South State Street, Suite 400 Salt Lake City, UT USA 84107

event themes - theme rewards

UA-49898941-1
lw