Fox Rothschild’s Revenue Up 10 Percent, PPP Up 3.6 PercentMay 11, 2011 – In The News
Fox Rothschild was one of the few Pennsylvania firms to have growing revenues in 2010. The firm's gross revenue in 2010 was about $239.3 million, up nearly 10.3 percent from 2009, when its gross revenue was approximately $217 million.
Its profits per equity partner (PPP) grew by 3.6 percent, from about $550,000 in 2009 to about $570,000 in 2010.
Mark Silow said 2010 was a "year of investment" that included both geographic and practice growth. He also said revenues grew because many of Fox's existing lawyers had productive years.
"Part of that involved a few alternative fee arrangements, whether they were contingency or bonus fee arrangements," he said, adding that alternative fee arrangements accounted for about $6 million of the firm's revenue in 2010.
"Our client base is very much an entrepreneurial middle-market client base and they're more comfortable entering into more entrepreneurial fee arrangements," Silow said.
Silow also credited the litigation and bankruptcy practices as well as the return of transactional work for the increase.
"We started to see the return of transactional work about halfway through the year. We saw the second half of the fiscal year be very active on the corporate transactional front. In the last six months, real estate and corporate [attorneys] were leading the firm in billable hours."
While other firms have experienced revenue gains by keeping a tight rein on costs, Fox Rothschild took the opposite approach.
"Our expenses actually went up this year," Silow said. The firm has invested money in expanding its bankruptcy practice in Las Vegas and its litigation practice in West Palm Beach as well as opening an office in Washington, DC. Silow said the firm was in a position to make these types of investments last year because it never had to make any drastic cuts during the recession.
"We have operated the same way in good times and in lean times," he said. "We continue to invest in the practice, we continue to grow headcount, we continue to expand facilities and we have not had the sharp drops in costs because we haven't had any sharp drops in headcount."
For 2011, Silow said Fox Rothschild is "actively looking for quality lateral partners and merger opportunities with smaller firms. We're dedicated to building our newest presence in Washington, D.C., and we're looking for added strength in every area and in every other office."