bti premium practices forecast 2014 executive summary

BTI PremiumPractices Forecast

Survey of Corporate Legal Spending

Compelling Research. Compelling Results.

©2013 The BTI Consulting Group, Inc. All rights reserved.

2014

Executive Summary

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©2013 The BTI Consulting Group, Inc. All rights reserved. +1 617 439 0333 www.bticonsulting.com BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending

Executive Summary

U.S. Spending by Global Companies Soars: Mid‐Sized Firms Wanted

U.S. spending by global companies is soaring—and 75% of their U.S. law firm hires are outside the Am Law 50.

Global company spending now accounts for 40% of U.S. corporate legal spending, up from 30% in 2010. We find global companies are more active in developing markets, building sales channels, and creating and filling product pipelines while investing in infrastructure and talent. The global companies operating in the U.S. have become a market unto themselves.

Global companies are propping up the U.S. corporate legal market, as corporate legal spending by the Global 500 borders on a boom by today’s standards. U.S. spending by global companies is growing at a compound annual growth rate of 7.2%. Non‐global companies’ U.S. legal spending is shrinking at a rate of 2.7%.

Global companies show vigorous interest in working with every size and manner of law firm. While the largest litigation and M&A will find its way to global law firms—the rest is up for grabs.

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Executive Summary

Thinking Global, Hiring Local

Global companies show an especially strong interest in using both mid-sized as well as larger firms in Litigation, Employment, IP, IP Litigation, Regulatory, Corporate and small- and mid-sized M&A. Again, large M&A and cross-border transactions will remain the province of large and global firms.

The law firms successfully targeting U.S. spending by global companies are focusing their pitches to discuss the more unique aspects of global companies. These include: Foreign Corrupt Practices Act, antitrust, transfer pricing, Labor-related issues and Regulatory issues. The pitches are tailored and customized for each client—and almost all come from firms who got their start in an advisory role.

Global firms are most impressed by what you know about them and their U.S. operations.

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1. The U.S. corporate legal market has two clear segments with global companies increasing spending and U.S.-centric companies shrinking spending

2. Global companies operating in the U.S. are increasing legal spending as they build market position all over the world—including the U.S.—producing demand for almost everything but litigation

3. “Resolution Revolution” continues—clients resolving large number of matters at lower cost

4. Labor & Employment slowly gains more attention from corporate counsel—as global companies adapt to U.S., and U.S.-centric companies face regulatory shifts and workforce changes

5. Shifting legislative and policy landscape driving bursts of spending in Regulatory

6. Strategic M&A provides selective opportunities to build market share, revenue stream and product lines through smaller and mid-sized transactions

7. Changing economics will bring about the occasional mega deal in more mature industries

8. IP Litigation continues to pose substantial strategic and operating risk to companies with all sectors driving spending

BTI Top Market Drivers for 2014

Executive Summary Top Market Drivers for 2014

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Executive Summary 1

Premium Practices Forecast 2014 5

• Legal Services Market 6

• Premium Practices Roadmap 2014 10

• Priority Practices 13

– Regulatory 15

– IP Litigation 18

– Class Actions 21

– M&A 24

– Tax 27

– Restructuring 30

• Tactical Practices 33

– Labor & Employment 35

– IP 38

• Opportunistic Practices 41

– Bankruptcy 43

– Bet-the-Company Litigation 46

– Investigations 49

Table of Contents Click on any title to go directly to the chapter

• Opportunistic Practices (cont.)

– Securities 52

– Litigation 55

• Cornerstone Practices 58

– Environmental 60

– Corporate 63

– Real Estate 66

BTI Opportunity Zones 2014 69

BTI Recommendations 72

About BTI 74

• Research Methodology and Approach 75

• Key Services to Help Our Clients 76

• BTI Research and Publications 78

• Terms of Use 79

• Contact BTI 80

mailto:[email protected]?subject=Premium Practices 2014

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Research Methodology and Approach

This report draws on more than 3,700 interviews conducted over the span of 13 years. BTI’s ongoing Annual Survey of General Counsel includes between 50% and 55% of companies participating in prior years. This approach provides for accurate analysis of longitudinal trends while simultaneously allowing for insights into new, changing and up-and-coming opportunities.

Spending, budget and practice assessments for 2013 and 2014 are based on nearly 300 new one-on-one telephone interviews with decision-makers at top-spending companies:

• Average revenue of $16.4 billion

• Median revenue of $4.1 billion

This year’s new analysis relies on interviews conducted between March 11, 2013 and July 22, 2013 with legal decision-makers, including:

• 46.8% General Counsel or Chief Legal Officer

– 44.3% direct reports to General Counsel

BTI conducts all interviews using multiple techniques. These include:

• Structured questions

• Quantitative questions

• Forward-looking questions

• Experience-based questions

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Key Services to Help Our Clients

BTI dissects each and every aspect of the client experience through more than 13,000 independent interviews with C-level executives and systematic analysis. BTI has helped professional services firms boost client service for 24 years.

BTI is the leading provider of strategic research to the legal community—performing more market research about law firms than virtually anyone. BTI has helped more than 150 law firms and professional services firms improve client service through compelling research and advice. We conduct the only continuous benchmarking market study in the legal services industry, now in its 13th year.

More than 70 of the 100 largest law firms use BTI’s services and research to:

• Implement robust client feedback programs

• Assess brand awareness and market positioning

• Target market opportunities

• Establish best practices and benchmarks to drive performance

BTI conducts the most insightful, custom client surveys as part of world-class client feedback programs to drive consistent client service delivery for leading professional services firms. Clients use BTI’s fact-based approach and powerful decision-making tools to drive change, create urgency and substantially boost performance.

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BTI performs a broad range of services for its clients, including:

Strategic Market Research

• High-Impact Custom Client Feedback Surveys

• Market Awareness and Brand Health

• Client Development Research

• Client Satisfaction Surveys

• Best Practices for Superior Client Service

• Private Briefings on Market Trends

Consulting

• Client-Centric Business Strategies

• Strategic Business Planning

• BTI Client Focus Boot Camp

• Garnering Premium Rates by Articulating Superior Value

Key Services to Help Our Clients

Private Briefings

BTI also offers private briefings both in person and via the web. Chock full of client-based insights, perspectives and facts, BTI briefings draw from our research, experience and other resources to provide provocative, constructive insights to help you boost client satisfaction, increase client retention and improve your performance. We can tailor our briefing to include specific feedback on your firm.

Please call Michael B. Rynowecer at +1 617 439 0333 ext. 5048 to learn more about BTI’s custom research and services.

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BTI Research and Publications

BTI Client Service A-Team 2014: Survey of Law Firm Client Service Performance http://www.bticlientserviceateam.com 17 activities drive superior client relationships. 4 matter most. Discover how clients rate more than 250 law firms in these key activities—including Client Focus, Commitment to Help, Legal Skills and Provides Value for the Dollar. Learn which firms rank best, The BTI Client Service 30. New release November 2013. Email Michael B. Rynowecer at [email protected] to pre-order your copy now. Coming soon.

BTI Litigation Outlook 2014: Changes, Trends and Opportunities for Law Firms http://www.btilitigationoutlook.com Delve into the world of Litigation with a comprehensive, high-impact analysis of client spending, buying habits and opinions on over 240 law firms—by name. The only fact-based tool based exclusively on 300 one-on-one interviews with corporate counsel. Proven to boost ROI on business development efforts. Get your copy of the BTI Litigation Outlook 2014 today.

The 2013 BTI Brand Elite: Client Perceptions of the Best-Branded Law Firms http://www.btibrandelite.com More than 3,400 in-depth interviews with corporate counsel reveal 9 distinct dimensions of law firm brand drive client selection and hiring—and are proven to generate new business and higher profits. BTI’s report delineates exactly how clients perceive nearly 400 law firms and which 18 enjoy the best brand image in the eyes of clients.

The 2013 BTI Client Service All-Stars http://www.bticlientserviceallstars.com Corporate counsel’s keen assessment of outside counsel separates the attorneys who deliver excellent client service from those simply delivering good client service. This year, 307 attorneys step up to meet—and exceed—clients’ expectations and earn recognition, by name, from corporate counsel for delivering the absolute best client service.

You can order these and other compelling BTI research or publications at www.bticonsulting.com.

http://www.bticlientserviceateam.com/

mailto:[email protected]

http://www.btilitigationoutlook.com/

http://www.btilitigationoutlook.com/

http://www.btibrandelite.com/

http://www.btibrandelite.com/

http://www.bticlientserviceallstars.com/

http://www.bticlientserviceallstars.com/

http://www.bticonsulting.com/

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Terms of Use

This copy of BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending is licensed to you for private, non-commercial use for internal company purposes. No portion of this information may be copied or transmitted in any form, shape or manner without the prior written consent of The BTI Consulting Group, Inc., of Wellesley, MA. Any violation of this license may be punishable by applicable federal statutes and subject the user to additional and compensatory licensing fees. Copyright ©The BTI Consulting Group, Inc., 2013.

Address any questions to:

The BTI Consulting Group, Inc. 396 Washington Street Suite 314 Wellesley, MA 02481 +1 617 439 0333

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Contact BTI

Please contact Michael B. Rynowecer, BTI President, at +1 617 439 0333 ext. 5048 or at [email protected] with your questions, thoughts and comments.

mailto:[email protected]?subject=Premium Practices 2014

The BTI Consulting Group, Inc.396 Washington Street, Suite 314Wellesley, MA 02481-6209

Tel: +1 617 439 0333Fax: +1 617 439 9174

www.bticonsulting.com

The BTI Consulting Group, Inc.396 Washington Street, Suite 314Wellesley, MA 02481-6209

Tel: +1 617 439 0333Fax: +1 617 439 9174

www.bticonsulting.com

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