Law Firm Re-Equitization: How to Double Down on a Bad Bet with Somebody Else’s Money
"Re-equitization." It is a term, and more importantly a process, which relates to law firm partnership and capitalization structure. The concept is to convert salaried attorneys to partial-profit-participation minority owners. Several firms appear to have adopted the practice, suggesting that somebody is spreading it — possibly even getting paid well to sell it.
It is one of the most singularly bad ideas since lending your last $5,000 to Cousin Frank so he could pursue his "double down on losing bets" strategy on blackjack
So why doesn’t it work?
(Reprinted with permission of the Daily Journal Corp.-Copyright 2014)
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