BTI Premium Practices Forecast 2014 Executive Summary

BTI Premium
Practices Forecast
Survey of Corporate Legal Spending
Compelling Research. Compelling Results.
©2013 The BTI Consulting Group, Inc. All rights reserved.
2014
Executive Summary

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©2013 The BTI Consulting Group, Inc. All rights reserved. +1 617 439 0333  www.bticonsulting.com BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending
Executive Summary
U.S. Spending by Global Companies Soars: Mid‐Sized Firms Wanted
U.S. spending by global companies is soaring—and 75% of their U.S. law firm hires are outside
the Am Law 50.
Global company spending now accounts for 40% of U.S. corporate legal spending, up from 30%
in 2010. We find global companies are more active in developing markets, building sales
channels, and creating and filling product pipelines while investing in infrastructure and talent.
The global companies operating in the U.S. have become a market unto themselves.
Global companies are propping up the U.S. corporate legal market, as corporate legal spending
by the Global 500 borders on a boom by today’s standards. U.S. spending by global companies
is growing at a compound annual growth rate of 7.2%. Non‐global companies’ U.S. legal
spending is shrinking at a rate of 2.7%.
Global companies show vigorous interest in working with every size and manner of law firm.
While the largest litigation and M&A will find its way to global law firms—the rest is up for grabs.

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Executive Summary
Thinking Global, Hiring Local
Global companies show an especially strong interest in using both mid-sized as well as larger
firms in Litigation, Employment, IP, IP Litigation, Regulatory, Corporate and small- and mid-
sized M&A. Again, large M&A and cross-border transactions will remain the province of large
and global firms.
The law firms successfully targeting U.S. spending by global companies are focusing their
pitches to discuss the more unique aspects of global companies. These include: Foreign
Corrupt Practices Act, antitrust, transfer pricing, Labor-related issues and Regulatory issues.
The pitches are tailored and customized for each client—and almost all come from firms who
got their start in an advisory role.
Global firms are most impressed by what you know about them and their U.S. operations.

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1. The U.S. corporate legal market has two clear segments with global companies increasing spending and U.S.-
centric companies shrinking spending
2. Global companies operating in the U.S. are increasing legal spending as they build market position all over the
world—including the U.S.—producing demand for almost everything but litigation
3. “Resolution Revolution” continues—clients resolving large number of matters at lower cost
4. Labor & Employment slowly gains more attention from corporate counsel—as global companies adapt to U.S.,
and U.S.-centric companies face regulatory shifts and workforce changes
5. Shifting legislative and policy landscape driving bursts of spending in Regulatory
6. Strategic M&A provides selective opportunities to build market share, revenue stream and product lines
through smaller and mid-sized transactions
7. Changing economics will bring about the occasional mega deal in more mature industries
8. IP Litigation continues to pose substantial strategic and operating risk to companies with all sectors driving spending
BTI Top Market Drivers for 2014
Executive Summary
Top Market Drivers for 2014

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Executive Summary 1
Premium Practices Forecast 2014 5
• Legal Services Market 6
• Premium Practices Roadmap 2014 10
• Priority Practices 13
– Regulatory 15
– IP Litigation 18
– Class Actions 21
– M&A 24
– Tax 27
– Restructuring 30
• Tactical Practices 33
– Labor & Employment 35
– IP 38
• Opportunistic Practices 41
– Bankruptcy 43
– Bet-the-Company Litigation 46
– Investigations 49
Table of Contents Click on any title to go directly to the chapter
• Opportunistic Practices (cont.)
– Securities 52
– Litigation 55
• Cornerstone Practices 58
– Environmental 60
– Corporate 63
– Real Estate 66
BTI Opportunity Zones 2014 69
BTI Recommendations 72
About BTI 74
• Research Methodology and Approach 75
• Key Services to Help Our Clients 76
• BTI Research and Publications 78
• Terms of Use 79
• Contact BTI 80

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Research Methodology and Approach
This report draws on more than 3,700 interviews conducted over the span of 13 years. BTI’s ongoing Annual
Survey of General Counsel includes between 50% and 55% of companies participating in prior years. This
approach provides for accurate analysis of longitudinal trends while simultaneously allowing for insights into
new, changing and up-and-coming opportunities.
Spending, budget and practice assessments for 2013 and 2014 are based on nearly 300 new one-on-one
telephone interviews with decision-makers at top-spending companies:
• Average revenue of $16.4 billion
• Median revenue of $4.1 billion
This year’s new analysis relies on interviews conducted between March 11, 2013 and July 22, 2013 with legal
decision-makers, including:
• 46.8% General Counsel or Chief Legal Officer
– 44.3% direct reports to General Counsel
BTI conducts all interviews using multiple techniques. These include:
• Structured questions
• Quantitative questions
• Forward-looking questions
• Experience-based questions

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Key Services to Help Our Clients
BTI dissects each and every aspect of the client experience through more than 13,000
independent interviews with C-level executives and systematic analysis. BTI has helped
professional services firms boost client service for 24 years.
BTI is the leading provider of strategic research to the legal community—performing more
market research about law firms than virtually anyone. BTI has helped more than 150 law firms
and professional services firms improve client service through compelling research and advice.
We conduct the only continuous benchmarking market study in the legal services industry, now
in its 13th year.
More than 70 of the 100 largest law firms use BTI’s services and research to:
• Implement robust client feedback programs
• Assess brand awareness and market positioning
• Target market opportunities
• Establish best practices and benchmarks to drive performance
BTI conducts the most insightful, custom client surveys as part of world-class client feedback
programs to drive consistent client service delivery for leading professional services firms.
Clients use BTI’s fact-based approach and powerful decision-making tools to drive change,
create urgency and substantially boost performance.

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BTI performs a broad range of services for its clients, including:
Strategic Market Research
• High-Impact Custom Client Feedback Surveys
• Market Awareness and Brand Health
• Client Development Research
• Client Satisfaction Surveys
• Best Practices for Superior Client Service
• Private Briefings on Market Trends
Consulting
• Client-Centric Business Strategies
• Strategic Business Planning
• BTI Client Focus Boot Camp
• Garnering Premium Rates by Articulating Superior Value
Key Services to Help Our Clients
Private Briefings
BTI also offers private briefings both in person and via the web.
Chock full of client-based insights, perspectives and facts, BTI
briefings draw from our research, experience and other resources
to provide provocative, constructive insights to help you boost
client satisfaction, increase client retention and improve your
performance. We can tailor our briefing to include specific
feedback on your firm.
Please call Michael B. Rynowecer at +1 617 439 0333 ext. 5048
to learn more about BTI’s custom research and services.

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BTI Research and Publications
BTI Client Service A-Team 2014: Survey of Law Firm Client Service Performance http://www.bticlientserviceateam.com
17 activities drive superior client relationships. 4 matter most. Discover how clients rate more than 250 law firms in these key activities—including
Client Focus, Commitment to Help, Legal Skills and Provides Value for the Dollar. Learn which firms rank best, The BTI Client Service 30. New release
November 2013. Email Michael B. Rynowecer at mrynowecer@bticonsulting.com to pre-order your copy now. Coming soon.
BTI Litigation Outlook 2014: Changes, Trends and Opportunities for Law Firms http://www.btilitigationoutlook.com
Delve into the world of Litigation with a comprehensive, high-impact analysis of client spending, buying habits and opinions on
over 240 law firms—by name. The only fact-based tool based exclusively on 300 one-on-one interviews with corporate counsel.
Proven to boost ROI on business development efforts. Get your copy of the BTI Litigation Outlook 2014 today.
The 2013 BTI Brand Elite: Client Perceptions of the Best-Branded Law Firms http://www.btibrandelite.com
More than 3,400 in-depth interviews with corporate counsel reveal 9 distinct dimensions of law firm brand drive client selection and hiring—and are
proven to generate new business and higher profits. BTI’s report delineates exactly how clients perceive nearly 400 law firms and which 18 enjoy the
best brand image in the eyes of clients.
The 2013 BTI Client Service All-Stars http://www.bticlientserviceallstars.com
Corporate counsel’s keen assessment of outside counsel separates the attorneys who deliver excellent client service from
those simply delivering good client service. This year, 307 attorneys step up to meet—and exceed—clients’ expectations
and earn recognition, by name, from corporate counsel for delivering the absolute best client service.
You can order these and other compelling BTI research or publications at www.bticonsulting.com.

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Terms of Use
This copy of BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending is licensed to you for
private, non-commercial use for internal company purposes. No portion of this information may be copied or
transmitted in any form, shape or manner without the prior written consent of The BTI Consulting Group, Inc.,
of Wellesley, MA. Any violation of this license may be punishable by applicable federal statutes and subject the
user to additional and compensatory licensing fees. Copyright ©The BTI Consulting Group, Inc., 2013.
Address any questions to:
The BTI Consulting Group, Inc.
396 Washington Street
Suite 314
Wellesley, MA 02481
+1 617 439 0333

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Contact BTI
Please contact Michael B. Rynowecer, BTI President, at +1 617 439 0333 ext. 5048
or at mrynowecer@bticonsulting.com with your questions, thoughts and comments.

The BTI Consulting Group, Inc.
396 Washington Street, Suite 314
Wellesley, MA 02481-6209
Tel: +1 617 439 0333
Fax: +1 617 439 9174
www.bticonsulting.com

BTI Premium Practices Forecast 2014 Executive Summary

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BTI Premium Practices Forecast 2014 Executive Summary