A classic three-act tale of how law firms go bankrupt, explained
DenehyXXL · x · 2026-10-28
Answering Turner Novak's puzzle of how law firms go bankrupt, DenehyXXL offers a classic three-act explanation:
- Print money, hire more, print more;
- Take on long-term commitments — fancy office leases, software, retirement benefits, investments;
- Rainmakers leave, profits shrink, remaining partners panic and flee — a run on the bank.
It explains why even $1-10k/hour billing can't save a firm once fixed costs stack up and key talent walks.
Related event: Law Firms Billing $10,000 an Hour Still Face Collapse in AI Era(2 posts)→
More from Companies & People
- Nathan Benaich: Bending Spoons and data companies are the grim reapers of SaaS — nathanbenaich · 2026-10-29
- Liquid AI's Leonie Monigatti to demo 100% local decision models at AI Engineer Shanghai — helloiamleonie · 2026-10-29
- GitHub Universe 2026 Opens: Keynote News Live-Tracked — kimmonismus · 2026-10-28
- Could iMessage Agents Be Apple's Next App Store-Scale Business? — signulll · 2026-10-28
- TechCrunch: AI execs flaunting family AI use shows how out of touch they are — TechCrunch AI · 2026-10-28
- QNX expands from millions of vehicles to robotics and physical AI — pdamodaran · 2026-10-28