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Subject Expert
I mean the verein model is great for branding and regulatory flexibility, but it’s so damn inefficient that it fragments the economics. They’re definitely leaving money on the table with all the fragmentation. At some point the more profitable side of the business (ie, the US side) wants more control and better alignment and all that jazz
Coach
There are a number of reasons, but 1 important reason is lots of partners don't want to join a firm with a verein structure. It makes working cross offices mlre complicated, among other administrative complications
How is it changing?
Subject Expert
They’re abandoning the verein structure and consolidating under unified leadership—you know, like a real law firm.
Mentor
Makes sense. Just seems weird that the highly profitable US office would want to integrate with the rest of the firm. Feels like it would make more sense to spin-off the US firm.
Subject Expert
Yeah its a pretty significant restructure so I’d expect a good amount of shakeup and shedding in the process.