Notes to the accounts: 31 Business combinations, page-39

Many city law firms are billing and then discounting by up to 40 - 50% on either the billing value or the debtor value. That's because they bill every moment of their time and not the real portion of their time or of the work that's been done. Collection rates in many city firms (ex-the corporate clients) is closer to 65-70% than to 90%. The 90%+ collection rates are applicable to those with Government clients or on Government panels, or heavily geared to the corporate sector. Rates towards 95% or higher are common amongst niche or boutique firms operating in specialised or specific areas of work, or who maintain strong management, accounting and work control.