More Canadian law firms to fail, predicts GC

Problems over succession could see more law firms follow in the footsteps of Heenan Blaikie, the leading Canadian practice which folded last week, according to Daniel Desjardins of Bombardier.

Mr Desjardins, GC at Bombardier, says: 'The real story here should be ‘Beyond the Demise of Heenan Blaikie,’ because many firms have a flawed business strategy. The problem often lies in the internal governance of the firm.' He thinks that Heenan might have gone through a 'weak transition' between two generation of leaders. For evidence, he points to the fact that Norm Bacal, the former managing partner, became the lead spokesman for the firm in the crisis. Mr Desjardins continues: 'The new managers were trying to change the firm’s value and strategies. But they couldn’t turn the corner, and I expect that other law firms will have the same experience.' Source: Financial Post