Why can't the law firm go public?

This is an article that the author hesitated for a long time before writing. However, in order to attract more people to care about and support the investment in China's lawyer career, the author still dedicated this article, hoping that this article can bring brand-new development ideas and ideas to lawyers in China and the lawyer industry in China. First of all, look at the management of the law firm from the success of McDonald's. Now, if you tell people that the law firm will be listed in five to ten years, people will certainly look at you in surprise, touch your brain and wonder if you have brain problems, career problems or neurological problems. Indeed, so far, no law firm in the world has been listed, even the largest law firm in Britain, Gao Law Firm and McKinsey Law Firm, which rank second and third, have not been listed. On the contrary, with a history of 152 years, China's Ministry of Justice granted the first foreign law firm a license to practice in China, and eventually it disintegrated globally and withdrew from the market due to financial problems. The main assets of Goldtech's new york office were acquired by Baker Mackenzie in mid-September, 2005. The main partners, including the last president of Saint-Gotha, have officially become the partners of Baker Mackenzie, and the partners of dozens of other offices in Saint-Gotha around the world will also go their separate ways. The failure of law firm's listing is not only a legal and institutional problem, but also the fundamental reason. Law firms all over the world only pay attention to professional and business development, but not to asset management and capital operation. In fact, this puzzle has a successful precedent in other industries. For example, McDonald's always makes the seemingly unprofessional and nonstandard French fries burger business the most standard and professional in the world, and then makes massive copies around the world, so that its business can occupy every corner of the world. At the same time, starting from asset management, he bought the most prosperous real estate in the world as his main business, and at the same time, he was running a real estate business instead of a fast food business. Of course, the rapid expansion of the assets of the garrison's main business and subsidiary business makes it logical to go public for capital operation. McDonald's trains standardized management talents around the world through McDonald's University to help you develop fast food business. By developing real estate business, we will ensure the continuous appreciation of capital and assets. This is the core value and competitiveness of McDonald's success. What is the relationship between the successful experience of McDonald's and the management of the law firm? The following is an analysis of the management status of law firms in China. At present, domestic law firms come from Beijing, Shanghai, Guangzhou and Shenzhen. Take 1000 square meters of office space as an example. The monthly rent, air conditioning fee and property management fee are calculated at 100 yuan per square meter, and the monthly rent of law firms is1000 yuan, which is1200,000 yuan a year. For law firms with commission system and corporate management, the operating cost is more than half. These benefits are earned by property companies or owners of office space. Even if the office space of some law firms is purchased by partners, these assets are not their own assets. At present, most law firms do not have their own real estate and assets. After deducting the lawyer's commission or salary and operating costs, the capital accumulation is almost zero, and even if there is, it is pitiful. Therefore, the law firm under the existing model does not have the ability to expand its capital, and can only concentrate on the lawyer business, while the existing benefit distribution system cannot provide capital accumulation for the law firm. The rental fee is a continuous and almost risk-free benefit of the law firm, but this benefit has been someone else's dish for many years and has not formed the law firm's own assets or capital accumulation. In addition, the business fees of the law firm are quite limited, which leads to the fact that the law firm has no ability to accumulate assets or capital, and there is no listing financing without capital expansion. From the perspective of reverse thinking, from the opposite side, it may be concluded that if a law firm wants to have a strong ability to accumulate and expand assets and capital quickly, it must start with investing in the necessary office space and real estate of the law firm. To this end, the author once wrote an article "China lawyer industry urgently needs strategic investment", but few people responded. Second, the skills and business training of the law firm have solved the problems of assets and capital accumulation and expansion of the law firm, so the market expansion and business training of the law firm has become a method problem, not a bottleneck problem. The old business model, in which the law firm mainly recruits lawyers and the business and expenses brought by lawyers drive the development of the law firm, has seriously hindered the expansion of the law firm and blocked its expansion neck. Under the original development model, lawyers all invest in their own business and their own abilities. Of course, lawyers should strive for the maximum business and fees for themselves, and the less profits left to the law firm, the better. Under this model, it is almost impossible for law firms to find their own way out. On the contrary, what if the law has all the ability to invest and train lawyers? Looking at the growth period of a young lawyer, it takes about five years to explore and develop the experience and skills in the first stage. If the law firm invests in the growth of this lawyer, it will take five years as a stage. Practice has proved that through special training, a young lawyer can complete the accumulation of experience and skills within one to two years, and the investment in the first two years will be rewarded in the last three years. If every lawyer invested 50,000 yuan each year in the previous two years, it would be 6,543,800 yuan. The business and expenses that may be brought to the law firm in the next three years are 300,000-500,000 yuan. According to the proportion of 46%, the law firm can get a return of120,000 to 200,000 yuan. If the lawyer continues to serve the law firm for five years, the business expenses that may be brought in the next five years will be at least 3 million yuan to 5 million yuan, and the law firm may get a return of 900,000 yuan to 6.5438+0.5 million yuan according to the proportion of 37%. After ten years of service, the annual lawyer fee is more than one million yuan, which brings more than 200 thousand yuan to the law firm every year. No one wants to invest in such a profitable investment, which is a strange phenomenon in the lawyer industry. In fact, the key to the problem lies in the dislocation of ideas and understanding, which has caused the short-sightedness of an industry development. Many colleagues are worried that the lawyers they have trained will fly when they mature. This kind of worry is totally unnecessary. People who have such worries have a simple reason: 1. Their own motives are impure, not to help others achieve things, but to exploit others' labor. 2. Insufficient investment in training lawyers, insufficient investment in money, enthusiasm and care, and winning people's hearts by hypocrisy will certainly not last long. 3, the method is not in place, lawyers are professional legal workers, everything can be based on the contract, and the rights and obligations of both parties can be clearly defined through the contract or agreement, especially the high liability for breach of contract and compensation for early termination. The last reason is the lack of ability to cultivate and achieve others, or the wrong target, so it is normal to pay more tuition fees. In fact, if a lawyer has worked in a law firm for five years, adapted to the team and cultural atmosphere of the law firm, and his interests are guaranteed, he will generally not choose to leave easily. People who come and go frequently are eager for quick success and instant benefit, so it is no problem to keep such people. What the law firm ultimately retains is not the interests, but the harmonious cultural atmosphere of lawyer affairs, which brings lawyers a sense of personal growth and professional accomplishment. Therefore, the managers of law firms must have a far-sighted strategic vision, noble sentiment, broad mind, and the courage and ability to be the first and pave the way. This is also a charm requirement for law firms and leading figures. Third, the market expansion of law firms The market of China lawyer industry is too narrow, which is not recognized by the market, but by lawyers who care too much about the gains and losses of interests. Always regard yourself as a noble lawyer in the west, and every effort should be rewarded accordingly, otherwise they will refuse to provide services to the society. China people have always rejected and despised people who are too utilitarian, and the public image of China's lawyer has gone from bad to worse, which is not unrelated. Of course, from the lawyer's personal point of view, it is also in line with human nature and human nature to get the maximum return with the least effort. However, China's national conditions are different. We work in the desert, and there are no ready-made fruits to pick, and there are no big trees planted by our predecessors to enjoy the cool. The lawyer industry in China should develop by leaps and bounds, starting with 100% dedication and 1% return. Without this mental preparation, choosing to be a lawyer will be very painful. According to the law of 20/80, 80% of the time and energy of law firms are used to provide free legal services to the society, and 20% of the time and energy create the value of 1.000% of law firms. Whether it is a law firm or an individual lawyer, only in the process of making a great contribution to society can they find the value and significance of their existence, and at the same time find a steady stream of spiritual motivation and business sources for themselves, which is the core competitiveness of law firms. However, such a management model can only be completed by corporate or enterprise law firms, and can only be undertaken by law firms that have the ability to expand assets or capital. The existing small workshop-style law firm or farmers' market-oriented business model can't undertake this mission and responsibility. Of course, many of them are the process of market expansion, team building, business process and benefit distribution mechanism reengineering. These other industries have provided us with successful experiences and models, and we only need to use them, as long as we know what models and mechanisms are suitable for law firms. The author has studied, explored, thought, precipitated and accumulated in the management of manufacturing, circulation and service industries at home and abroad for many years. On the one hand, it is to prepare for cultivating the non-litigation business market, at the same time, it is also to find a suitable management model for law firms, to prepare for training management lawyers needed by enterprises and to prepare for training professional managers of law firms. It can be summed up in twelve words: adjusting ideas, breaking through bottlenecks and seeking development. Fourth, seek to integrate resources with accounting firms, investment or management consulting companies. Law firms listed by backdoor or shell have the same nature, the same resources and the same service methods as accounting firms and investment or management consulting companies, and the only difference is the different service contents. Moreover, from the perspective of international and domestic development, a large number of lawyer businesses, especially corporate non-litigation businesses, have been occupied by other intermediaries, and lawyers only monopolize the litigation field. If we can integrate lawyer business, accountant business and consulting business into one product service, it will be more competitive and have greater market space. Accounting firms, investment or management consulting companies are also faced with the situation that they have to pay a considerable part of their profits, which is suitable for and needs strategic investment. From a global perspective, due to the constraints of law firms' laws and systems, law firms do not have the conditions for listing for the time being, and neither do accounting firms in China. However, there is no legal obstacle to the listing of investment consulting companies. As long as the asset scale and operating performance meet the magic weapon requirements, they can go public. Therefore, the listing method of law firms can meet the listing requirements only by borrowing the shell of consulting companies. At the same time, the shell of consulting company can cultivate market and business. With the shell of consulting company, we can cultivate and bring up the lawyers or professional managers we need. In short, it is impossible for a law firm to make strategic investment and expansion, and it is possible to borrow the shell of a consulting firm. The existing legal or institutional obstacles are no longer obstacles, including the difference between partnership and cooperation, which is meaningless at all, as long as it can unite a group of lawyers.