Many transactional lawyers who billed up a storm during the recent stretch of record-breaking mergers and acquisitions now have more time on their hands than they might wish.

The lull is hitting law firms and lawyers that historically have strong M&A, debt finance, venture capital or private equity practices, as macroeconomic forces curb transactional demand from clients contending with volatile markets, inflation, and persistent economic and geopolitical uncertainty.

This pause, while challenging, also presents corporate attorneys with an opportunity to make positive contributions to their firms in other areas, from pro bono efforts to thought leadership and laying the foundation for future deal work.

As during the pandemic, transactional lawyers who are waiting for stronger economic winds can use the extra time productively by focusing on areas of interest and firm initiatives that may have been less of a priority during busy times.

Think of this moment as a breather. The current downturn in transactions is certainly temporary: Deal work ebbs and flows, and the M&A and debt financing spaces are cyclical. Though last year was historically slow for dealmaking,[1] and global M&A activity slumped further in the first quarter of 2023,[2] many observers expect the pace to pick up as the year progresses, with dealmakers seeking opportunity amid the turbulence.

In the meantime, transactional lawyers with more available nonbillable time should consider the following ideas for constructively deploying those extra hours.

1. Nurture Client and Referral Sources

Stay in front of those who kept you busy during the boom times. Keeping up with business relationships is especially important when work slows down, whether it is attending a ballgame, meeting for breakfast or lunch, or just calling or emailing to touch base.

You can commiserate about the state of the deal market, or take a more positive tack and discuss possible future opportunities. What matters is keeping the conversation going.

Consider adding value by offering to present on a topical legal issue, gratis, or by teaming up to pitch a potential mutual customer.

2. Cross-Selling

Make introductions to clients and referral sources in areas outside your typical transactional focus. There is demand for legal assistance in several areas, including loan workout, bankruptcy, intellectual property, employment, employee benefits, immigration, data privacy, trusts and estates, and general litigation.

Given the tough environment for marketing deal work, now is a good time to proactively sell the experience of your colleagues in other practices.

3. Thought Leadership

Use this time to demonstrate your authority through articles, blog posts and other opportunities to showcase your expertise and legal knowledge, such as speeches or podcasts. Focus on topics that are newsworthy or novel, and that address key pain points for your audience.

Develop ideas that advance the conversation in those areas and provide useful insights. This will not only keep you top of mind for current clients but can help you reach potential clients.

You might also consider growing your personal brand on social media. While that may feel unconventional to some attorneys, these platforms offer a space to enhance your reputation while also creating greater reach for your firm.

4. Workplace Culture

Improve your law firm's work environment by forging connections both inside and outside the firm — an area that warrants special consideration after extended months of remote and hybrid work during the pandemic.

Introduce yourself to new colleagues and explore ways to help each other in your respective practices.

Volunteer to assist with legal recruiting, a crucial task to ensure a deep bench of talent for your firm that you may not have prioritized when busy with client work.

Remember that associates continue to crave feedback, advice and mentoring. Take an associate out to lunch, or have a candid conversation about how to improve their client service or document drafting. Thank them for the work they handled during busy times and prepare them for the stepped-up pace when transactional work resumes.

5. Invest in DEI Initiatives

Diversity, equity and inclusion is a critical focus for law firms, as many in the profession look to increase the number of attorneys from traditionally underrepresented groups.

In addition to the benefit that working alongside a diverse group of colleagues offers you, such efforts demonstrate your firm's commitment to an issue that is front and center for many clients. With businesses increasingly looking to law firms for guidance on how to advance their DEI goals, such counsel is best communicated by firms that are working on their own DEI initiatives.[3]

Take the time now to find ways to integrate DEI functions into your everyday work. Make yourself available to mentor new associates from diverse backgrounds. Participate in, and add value to, an employee resource group. Spend more time providing constructive feedback. Understand what your firm is doing to advance DEI efforts and find opportunities to help build a more robust program.

6. Plunge Into Pro Bono

Commit to a pro bono project. The slowdown in billable work opens up time to help your community or a cause of personal interest. The time you dedicate can offer invaluable and, in some cases, life-changing support to individuals or groups who might otherwise be unable to secure legal assistance.

Aside from the satisfaction you'll gain from helping those in need, pro bono work can also offer opportunites to work in a field outside your expertise, collaborate with colleagues from other practices areas, and demonstrate your — or your firm's — commitment to prominent social causes for potential clients.[4]

Your firm likely offers annual credit hours for pro bono service and may even have a dedicated team that manages pro bono matters to help you get started. You might also look into additional resources like a local legal services agency, bar association or larger organizations like the Pro Bono Institute to find pro bono opportunities.

7. Be Mindful of Rates and Spending

Deals are still getting done, and firms are increasingly competing on price to land them. Consider lowering your billing rate to be more competitive to win new business. In a soft market, it may be better to keep busy with billable work at a slightly lower rate, than to be slow while charging a higher one.

Save your firm's marketing dollars for areas where you're most likely to see a return on the investment. Until transactional work once again increases, it may be best to forego an expensive sponsorship of a conference or event. Temper your travel for continuing legal education or other such programs.

Your firm's financial professionals will appreciate your consideration and effort as they work to control costs in a challenging year.

All the above are important considerations for lawyers and law firms, whatever the business climate. However, such initiatives are often cast aside when billable work is plentiful. While transactional activity continues to be affected by economic headwinds, now is the time to spend your extra nonbillable time wisely. Be constructive, strategic and effective.

References

Reprinted with permission of Law360.