As the U.K. and France transition to new political eras and the U.S. prepares for its own election, it’s worth remembering that the tough decisions faced by politicians are mirrored in the boardrooms of the world’s largest law firms. Just like political leaders, the managing and senior partners of the world are operating in high-stakes environments where every decision can have significant consequences. For example, in the last week, firms with international ambitions have been shutting down offices. Dechert announced the closure of its Hong Kong and Beijing offices, along with its Chicago office. It also no longer has a serviced office in Frankfurt. This was closely followed by Eversheds Sutherland’s announcement that it has placed its Beijing office under review, with some insiders suggesting an imminent closure. Eversheds’ potential move is significant as it would be the first U.K.-based firm to scale back in Greater China, highlighting the broader implications for the Asia legal industry. (Yes, Eversheds is technically a transatlantic firm, but it has more lawyers in the U.K. than in the U.S.) Similarly, Am Law 200 firm Armstrong Teasdale announced it is severing ties with its London operation. This is the same firm that launched in London in early 2021 to great fanfare. At the time, the firm’s leader said: “London is the financial industry capital of Europe, if not the world. In a post-Brexit environment, it will be critically important for us to have an office both in the U.K. and in the E.U. in Dublin.” The firm maintains a small office in Dublin, according to its website, but clearly London is no longer critically important. The view couldn’t be more different over at Proskauer, where the firm has been hiring aggressively in London. Closures in less profitable regions are one thing—and the situation in Greater China also includes data security and national law concerns—but when you have Chicago, London and Frankfurt on the same list it raises questions about what internal wrangling must be going on at these firms. It’s not only negative decisions that leaders face of course. There are tough choices regarding potential opportunities too. Should firms take the plunge in India, given its huge economic potential? Long-awaited clarity on the country’s new rules for foreign law firms will be out in the coming weeks. Meanwhile, German firms may soon have the option of taking external investment, such as private equity money, following a development in a long-running court case. This all matters because, as we have seen in recent elections, discontented voters can quickly swing in a new direction. And law firm partners can be just as volatile and ruthless if they disagree on the best way to grow revenue and profits... | 