Choosing a Lateral Firm
Whether you’re a law student or an associate with lateral aspirations, you may find yourself in the position of choosing between several jobs. If you’re choosing between Biglaw firms, this can be particularly difficult because firms are often similar on paper; it’s hard to distinguish two-names-and-an-ampersand from three-names-and-an-ampersand. Weigh these factors:
Compensation. Even between market paying firms, there are some questions worth investigating. Does the firm pay the market rate through year eight? Or does their lockstep model end at year three? A firm that pays the market rate to first years but that looks to cut costs elsewhere may not be as reliable come bonus season. Or come year four, at the very least. More senior associates should also consider additional metrics like revenue per lawyer (RPL) and profit per equity partner (PPEP) in determining firms’ financial competitiveness.
Client base. Do you want to work exclusively with pharmaceutical companies? Really? Well, I’m sorry to say that you cannot be helped. However, if you do not want this to be the case, make sure you thoroughly investigate your target firms’ client bases. These may differ based on practice group, but they can be investigated through transaction press releases (corporate), court filings (litigation), and by reading firm websites and LinkedIn posts.
Reputation. If you choose a law firm based on its prestige ranking (read: its Vault ranking), you will at least likely be setting yourself up as a marketable candidate, should you want to switch firms later. However, it would be better to fine-tune your choice based less on the firm’s overall reputation and more on its reputation in a particular geographic market and practice area. For instance, a firm may be well-known in Philadelphia, but carry far less name recognition in Miami, where you eventually want to end up. Or the firm may be weak in capital markets, but strong in white collar litigation. If nothing else, the firm you choose should strengthen your résumé (for purposes of advancing your own goals).
Partnership and equity partnership. More senior associates with partnership aspirations absolutely must determine whether a target firm (a) has a two-tiered partnership, (b) their realistic chances of making partner, and (c) their timeline for making partner. These last two questions are much harder to answer, and often require asking some awkward questions before agreeing to join a firm.
Of course, this list is not exhaustive. There are (many) worthwhile considerations to explore in addition to the above.
