“How much capital do we need in order to be properly capitalized?” is a question I am often asked. In this time of economic uncertainty, it is an even
more appropriate question.
The need for capital is perhaps one of the most confusing and misunderstood issues among law firm partners. How much capital is needed is an even larger challenge to get agreement on. This article will help educate your lawyers as to the changing need for better capitalization, how to determine how much
capital is needed and how to rationally (and safely) use debt in the capital structure.