Those of us who are old enough to have been through a recession before are preparing with the wearied wisdom of war veterans. They've survived before, no doubt they'll survive again. Those who haven’t been through it should take some tips from the old timers. Make no mistake, survival is the key word here.

The recent boom in legal services has escalated profits and remuneration levels. Law firms have become much larger and the legal scene has evolved into a sophisticated business, dominated by global giants run along corporate models complete with five-year strategy plans and a beady eye on the bottom line.

Part of the competition for supremacy involves the hunt for, and retention of, talent. Over the last few years, talent has become synonymous with business development skills. Generating fees through strong or historic client relationships (and preferably in a sector focus) means talent can visibly contribute to the bottom line.

The hunt for talent does not abate in times of recession. It merely becomes more focused. The heavyweights, or perceived heavyweights, in any firm are clearly not likely to be in any potential danger. Even in the current market, they can often pick who they want to work for, with those offering an international reach, leadership in their sectors and strong profitability being the most attractive. Firms that have failed to carve out a strong position during the good times will face losing a number of their stars.

Who is most vulnerable in a depressed economic climate? The first casualties we have seen are the so-called “boom” partners. Solid, technically competent people who were brought in to service an overflowing pipeline of instructions.

Five or six weeks ago, management at firms across the City began holding discussions with these partners. It has not yet been a tidal wave — more a steady drip — and so far mostly from mid-size firms.

Depleted pipelines of work have rendered these boom partners redundant. Unless they can retool, and retool quickly, or find some other way of generating work, they will find themselves under intense management scrutiny. First, the boom partners are told to look elsewhere. Another chat is scheduled for January. By March or April, which happens to be the end of the financial year for many firms, they could be out the door.

Equally, senior (and therefore expensive) partners at the top of the lockstep are facing de-equitisation. This is a hard thing not to take personally, particularly after many years’ service, but the truth is that a depressed economy is a great opportunity for firms to do some housecleaning. Those who fail to stand out, or who are perceived to be a greater cost than an asset, may find themselves in an uncomfortable position.

Having a strategy is the only way forward. For firms, this is a time to develop or rethink their plan. The increasing polarisation of law firms, with global players on one hand and niche firms on the other, leaves those in the middle seeing their market share increasingly encroached upon. Salvation may lie in consolidation.

It is no coincidence that our merger mandates have shot up since the summer. This is not the knee-jerk reaction we experienced in the early 1990s. A defensive trigger for merger does not mean a firm is necessarily exposed or in trouble. It can be that a firm is planning ahead with a view to securing better market position.

It is not merely about size. Two medium-sized firms will not necessarily be better off as a big firm. But with complementary (as opposed to duplicative) practice areas, increased geographical reach and lead sector focuses, suddenly you are proving attractive to those heavyweights you had little chance of securing beforehand.

For individuals, this is an opportunity to focus on adding value and to try to demarcate yourself from the crowd. Easy words; not so easy to do. But no-one said survival was easy.

Dominique Graham is a director at Graham Gill and advises law firms on growth strategy and mergers

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