GREEN SHOOTS
Law-firm partners see clients paying up as positive economic sign
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BY DOUGLAS HANKS
dhanks@MiamiHerald.com
Even with a recession, legal work kept flowing into Ricardo Gonzalez and Michael Wermuth's small Doral commercial law firm.
Revenues were another story.
Each month this year brought another client behind on its legal bills. Checks that used to come in every 30 days went missing for 60 days, then 90 days. At one point this summer, 75 cents of every dollar billed were more than a month overdue.
``Some of them were having difficulties because their own customers and clients were behind on payments to them,'' Wermuth said. Added Gonzalez: ``I'm sure they were behind in paying a lot of things.''
But this fall, both anxiety and receiveables have dropped substantially at the seven-lawyer shop. Clients eased their grip on cash, allowing Gonzalez & Wermuth to slash its overdue fees by more than half.
``Things seem to be healthier,'' Wermuth said. ``What we started seeing was clients having the ability to bring their bills up to date.''
In this dismal economy, it takes some work to find encouraging signs. I know because it's my job to write The Herald's new Green Shoots column.
Named after a phrase Fed chairman Ben Bernanke made famous on 60 Minutes this spring, this occasional column will document wisps of recovery across South Florida's $260 billion economy.
The metaphor comes from the image of a tiny little plant sprouting on a fallow landscape -- be it a plowed field or a smoldering forest fire.
THE SEARCH
In searching for a rebound to chronicle in this debut column, I talked to more than two dozen executives, analysts, publicists, lawyers, brokers and others.
I interviewed a Fort Lauderdale furniture liquidator who said he can't find even a hint of increased demand for office equipment.
There was the concessionaire in South Beach who would love to boast of tourists returning to high-end diversions like WaveRunner rentals and parasailing -- would love to, but can't. A bakery in Coral Gables still hadn't seen brides return to the elegant sugar flowers that were common on wedding cakes during the boom times but now are more likely to be swapped out for real -- and yes cheaper -- ones.
I could go on -- but it doesn't seem in keeping with the spirit of Green Shoots, a column designed to root out hidden pockets of recovery in an economy that has left many so glum.
So back to Gonzalez & Wermuth.
The two met in Little League. Both had been recruited to coach their sons' teams, and wound up running the Doral Atlanta Braves together.
BOOM YEARS
These were the boom years in the middle of this decade, when Gonzalez's real estate practice was on fire and Wermuth was riding high on legal work on businesses with ties to both South Florida and Latin America.
But in 2007, Gonzalez, 42, and Wermuth, 41, both wanted to diversify their practices in case of a downturn and spread the management duties to allow for more free time.
Billings continued to grow at the newly formed Gonzalez & Wermuth, even as Wall Street melted down in the second half of 2008.
The start of 2009 brought no letup in client work -- but an alarming drop-off in client dollars. Bills went out, but the firm had to wait longer than usual for payment.
Some clients blamed a cash shortfall brought on by the steep recession: Their own collections were down, leaving them short on cash to pay Gonzalez & Wermuth. Others were weathering the downturn but concerned about what the next quarter might bring.




















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