‘I’m very optimistic about our model.’
Jason Mogg, Kinstellar
As part of our annual Euro Elite report, management at independent firms in Europe give their views on market challenges, Brexit and technology
ZERO SCHADENFREUDE
‘Brexit will probably have an impact on UK clients but there is no feeling here that Brexit will harm either the position of the German economy, or German independent firms. However, it is not the time for us to be looking at the UK and saying: “Poor UK firms, you will have a problem and Frankfurt is going to be even stronger.”‘
Alexander Schwarz, managing partner, Gleiss Lutz
LONDON LEADS
‘There is an ongoing fee pressure with all commoditised business, which I would say applies to standard M&A transactions as well. I also doubt that London will lose its global position as a financial and commercial hub for the world.’
Tobias Bürgers, co-managing partner, Noerr
NO PASSPORT
‘Whatever the results of the Brexit negotiations, it is my very clear view that UK regulated entities will not be able to benefit from a European passport. We have seen a lot of clients doing surveys, having internal discussions, forming plans, and having discussions with the French government and the regulators, because the French regulators have been heavily involved in bilateral and trilateral discussions with the key players in the market.’
Stéphane Puel, managing partner, Gide Loyrette Nouel
GOING NOWHERE
‘Our strategy is to maximise the competitive advantage that we have as Italians. There is no doubt that in the next five to seven years, there will be no growth of legal revenues in Italy. I’m quite worried about Brexit in the sense that I’m not extremely confident about how the EU will negotiate with the UK.’
Stefano Simontacchi,co-managing partner, BonelliErede
GOING DUTCH
‘The overall picture is that other Dutch firms are becoming more Dutch, and we are becoming more international. We now have 30 nationalities in the firm. The UK firms are downsizing, or will downsize over time, because their investment strategies are more focused on Asia and the US.’
Geert Potjewijd, managing partner, De Brauw Blackstone Westbroek
HEALTHY COMPETITION
‘We don’t have competition from international law firms in the Baltics. I am confident that the dominance of the largest firms in the market can continue. When you have two dominant firms, there is too little choice for the clients, especially when they may have a conflict of interest. Here clients can choose between a number of top firms – this is good for us as it is better to have more than one strong competitor.’
Laimonas Skibarka, co-managing partner, Sorainen
‘I’m worried about Brexit in the sense that I’m not extremely confident about how the EU will negotiate with the UK.’
Stefano Simontacchi, BonelliErede
OLD STORY
‘There has been a bit more activity in terms of international firms coming into Ireland. People are getting excited about that. But it is important to note that international firms have been coming into Ireland for years now. Maples [and Calder] have been here about ten years, Walkers and Dechert have been here for years, the UK specialist insurance firms [Beachcroft, Kennedys] have been here for years. Eversheds has been here for more than ten years. It is not a new phenomenon.’
Brian O’Gorman, managing partner, Arthur Cox
NO RESTRICTIONS
‘I’m very optimistic about our model. It has the advantage of having the scale and ability to deliver consistency and quality and that’s hard to achieve. Independence allows you to work with the major international law firms in the world. It’s very competitive vis-à-vis the local firms but it has the scale, training and knowhow, including the independence not to be restricted to work only with one or another international law firm in the market.’
Jason Mogg, managing partner, Kinstellar
DARWIN THEORY
‘The market will generally remain stagnant and large firms will still take market share from smaller firms. We expect to have a better year in 2017 than 2016 and I think the other tier one and tier two firms have the same prediction. But overall, the market won’t be very positive. The trend where a lot of the low-end work is insourced by clients will continue and that will mean a lot of the smaller law firms will suffer more than they did last year. At the higher end of the market the pipeline looks good and a lot of activity will go on in 2017.’
Simon Evers Kalsmose-Hjelmborg, managing partner, Bech-Bruun
RISE OF THE MACHINES
‘The market is pretty good. I would be surprised if anyone was pessimistic about the legal market in the Nordics other than general reflections over what is going to happen with automated services and artificial intelligence – those kind of things. The general market as such is OK. Even more so in Sweden and perhaps also Finland.’
Kjetil Hardeng, head of corporate M&A, Haavind