How do Best Friend Law Firms Work?

[TheCustardPants]

Hi guys!

I have an interview coming up at Slaughter and May. One thing I've noticed is that they don't have international offices, and like Travers Smith, they have 'best friend' law firms whom they partner with.

My question is, how does this really work in detail? Do they simply work with the local law firm in a region (let's say, Japan), and work on a client matter 50/50 - and then take 50% of the billing from this client? And what are the advantages/disadvantages of this?

Thanks!

 

[TCLA Community Assistant]

Hi guys!

I have an interview coming up at Slaughter and May. One thing I've noticed is that they don't have international offices, and like Travers Smith, they have 'best friend' law firms whom they partner with.

My question is, how does this really work in detail? Do they simply work with the local law firm in a region (let's say, Japan), and work on a client matter 50/50 - and then take 50% of the billing from this client? And what are the advantages/disadvantages of this?

Thanks!

It won’t be 50/50 - how it will be split will be based on how many hours/size of the project in each local jurisdiction. Slaughters won’t be taking 50% of the fee if they were only doing 5% of the work. Same if they were doing 85% of the work.

It’s really just a referral system more than anything, tied up with some joint branding /marketing and other infrastructure aspects (eg secondments). The referrals will go both ways though - Slaughters will be getting an inflow off work from their partner law firms who have deals that come into the UK. Both sides leverage each other’s brand and ensure a level of quality work is met.

Major advantage is not having to 1) invest and 2) have the running costs for multiple offices. Disadvantage is that relationships and businesses change. If you can’t directly influence the strategy of your best friend firm, there nothing stopping them finding a new best friend in time or entering your own market in time.