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Case Study | Benchmarking

Benchmarking Rates for Value

Learn how a leading private equity firm decreased rates by 17% and saved more than $27M across key practice areas.

CHALLENGE

With legal representing their largest indirect cost, the General Counsel of one of the largest mid-market private equity firms wanted to combat annual rate increases from outside counsel on M&A matters.

 

Their rates had been rising 4-7% YoY – well above inflation. With portfolio operations and cost management becoming ever-increasing imperatives, his MP and CFO were demanding rate increase relief and accountability across their legal spend.

 

The GC believed he could be getting better rates but didn’t have any typical economic tools to achieve his goals. He needed analytics and market insights to ensure he was getting competitive rates, limiting his exposure to rate increases, and tracking discounts across business units.

SOLUTION

Using Bodhala’s Benchmarking Suite, the PE firm did a competitive analysis of their 10 firm panel, measuring how they stacked up against relevant competitors in the market for similar work, as well as how each firm in the panel compared to each other across M&A, Fund Formation, and other relevant matter types.

 

 

 

Market Benchmarking
A report comparing each firm’s rates to a relevant cohort of competitors in the market, based on the type of law and the complexity of work, to create accurate rate card benchmarks at the timekeeper level.

 

Internal Benchmarking
Internal Benchmarking Report Cards compared each firm against the rest of the panel, which dive into more granular rate and performance metrics, including matter staffing analysis, as well as average partner hours and timekeeper rates

IMPACT

With Bodhala, the PE firm decreased their proposed annual rates by more than 17%, saving more than $27M across M&A and Fund Formation matters.

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