More mergers, more Brexit and more uncertainty – law firm leaders reflect on the past 12 months and look ahead
Feeling hot
‘It has been a great year to be a private equity financing lawyer! The debt markets for leveraged finance have been hot, and our banking and high-yield team has advised sponsor clients on some of the largest and most complex financings in 2017. We expect this trend to continue with lots of liquidity being provided to fund buyouts from both private debt funds and the debt capital markets. It has been a strong market for the top US firms in London.’
Neel Sachdev, partner, Kirkland & Ellis
Busy bees
‘There are clients who need advice on what happens in different Brexit scenarios, so there is a lot of work there. Regulatory advice is very strong. Real estate is interestingly busy. Our finance team is also busy. For next year, clearly what happens in the next few weeks in the negotiations will be relevant. If there is no agreement reached with sufficient clarity on a transactional arrangement, we will see clients who will have to put in place contingency plans and need advice with that.’
Susan Bright, regional managing partner – UK and Africa, Hogan Lovells
Pretty good year
‘2017 has been a good year. We reported strong results in July, have furthered our push for innovation and have advised on market-leading deals globally. We are particularly proud of these successes against the backdrop of the volatile market of the last 12 months. Everyone is adjusting to a new era of uncertainty, but we feel that the various elements of our business mean we are well placed to meet the challenges and opportunities ahead.’
Andrew Ballheimer, global managing partner, Allen & Overy
Coming together
‘Much of our focus this year has been on integration following our merger. Clients get why we made this move. The legal market is in a period of significant change and upheaval. We are seeing increasing levels of consolidation and a reshuffle of key players in the market, fuelled by internationalisation and the emergence of new players with alternative delivery models. Technology is undeniably one of the biggest disruptors to impact the legal market and beyond.’
Stephen Millar, managing partner, CMS Cameron McKenna Nabarro Olswang
Expect the unexpected
‘It has been an unexpectedly positive year for us. We remained busy through the summer and that is always an important determinant of a good financial year, so we are finishing the calendar year on a pretty confident note. However, things are going to get harder. What’s hard to predict is when that will start to happen. On the transactional side clients have ready access to capital and debt, and taking advantage of the opportunities that present themselves. There is a very fragile political situation, with widespread potential ramifications. The spectrum of possible outcomes on almost any front is as wide as I can remember. We have to look at 2018 hoping for the best but with a note of caution.’
Charles Martin (pictured), senior partner, Macfarlanes
Risky business
‘The global risk landscape for business today is increasing in complexity, whether it is the result of increased governmental and regulatory intervention, disruptive and technological advances, or environmental, social and geopolitical changes. It’s our job to make sure we’re delivering the right mix of legal services, at the right price, in the right locations across our global network and with the right technology to help clients succeed.’
Simon Konsta, senior partner, Clyde & Co
‘Things are going to get harder. What’s hard to predict is when that will start to happen.’
Charles Martin, Macfarlanes
Prognosticator of prognosticators
‘2017 has surpassed expectations, with recent investment in our business and people bearing fruit, and the stars helpfully aligning for us. 2018 is difficult to predict, but as most of my recent predictions on the outcome of the Brexit vote and the US and UK elections have been wrong, I won’t try. Business confidence is clearly fragile, UK growth forecasts have been cut and we are making painfully slow progress with Brexit negotiations. That’s not the greatest of backdrops, but we’re confident in our model and ready for the challenges next year will inevitably bring.’
David Patient, managing partner, Travers Smith
Fight on our hands
‘The first few months of the year were tough. Uncertainty held back activity, but we found the second six months to be better. We have seen a rationalisation of the number of firms clients work with; the number of firms on panels has been reduced. As we saw in the Autumn Budget, growth in the UK will be flat for some time to come. No-one can anticipate a bumper economic environment. We are conscious going into the year ahead it’s a very competitive market, and we need to focus really hard on what clients want and deliver.’
Jeremy Cohen, chief executive for the UK and Middle East, Dentons
Adapt or die
‘The firm is poised to have its best year ever when the market for legal services remains pretty flat. We must be taking market share and London is a big part of that success story. We are nowhere near the level of disruption we see in other industries, but we all need to innovate and continue to change to succeed. Not an easy task as people don’t normally like change, especially lawyers, but the industry and market is vibrant and adapting. Next year I see much more focus on the issues of diversity and fairness. These issues will move very clearly from the need-to-do list to the want-to-do list.’
Mike Goetz, managing partner – London, Ropes & Gray