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Definitely happens but not sure how common. I'm in the US but anecdotally, I ran into a guy who was a senior associate (5-7 years exp.) at a biglaw firm and he lateraled over to a top RX shop and had to start back as an associate. Doesn't really seem worth it to me but your mileage may vary. If you have an undergrad degree in law (we don't do that in the US but I think they do in the UK possibly?) then it might be worth pursuing an MBA after a few years of work experience.
My boss did this. Went from big law to A&M
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