Manchester, mergers and management merry-go-rounds – 2015 has been as tumultuous a year as any in recent memory. In our annual review, law firm leaders reflect on what has happened and look ahead to 2016
EXCITING TIMES
‘Understandable client nervousness about China and markets generally meant that the busy autumn period got off to a slow start but recovered. Whether that will be sustained into 2016 is hard to call. There is a lot for our clients and the markets to worry about out there. It is also a time of rapid change in the legal world and that means there are lots of new ideas to work on: exciting times.’
Charles Martin, senior partner, Macfarlanes
BUMPS IN THE ROAD
‘The low interest rate environment in both the US and Europe has produced a strong deal environment – particularly for strategic buyers who are keen to do deals. The return of pre-conditional offers, however, reflects the growing complexity of obtaining worldwide antitrust approvals. We expect to be busy across the firm in 2016 but the looming possibility of a Brexit and the ongoing geopolitical issues in the Middle East and the Ukraine may both come into play. If they do, then they will provide an interesting set of challenges for law firms and their clients to tackle.’
David Wittmann, practice partner, Slaughter and May
‘The UK and international marketplace continues to be a tough environment. But this is the new normal.’
Monica Burch, Addleshaw Goddard
MODERN LIFE
‘There’s a lot of talk about modernising legal practice – you will see a lot on that front. Firms will work on their strategy for that, whether its technology, lower-cost centres, agile working, and automating process. To my mind, the liberalisation of the market through the Legal Services Act has brought about change for the better. It’s forced change on the legal market. Traditional law firms are looking to adapt and you don’t necessarily see that in other jurisdictions.’
Graham Stedman, senior partner, Nabarro
GROWTH IS GOOD
‘Asia was our strongest market by far where the challenge has been more about managing the high rate of business activity and growth in demand for our firm – we see levels of activity in China that are significantly different to the macro data that the press overly focuses on. If growth is exciting, then we had a very exciting year.
I expect our clients to continue to strengthen their businesses and to expect even more from us for less – but in terms of growth, with our exposure to Asia and China in particular, I am confident of strong levels of business activity.’
Stuart Fuller, global managing partner, King & Wood Mallesons
NO COMPLACENCY
‘We continue to tweak and monitor our business all the time in order to remain relevant. There is a real sense within the firm that: “We can’t afford to be complacent. Ever.” I ask nothing less of my partners and they ask nothing less of me.’
Ray Berg, UK managing partner, Osborne Clarke
‘If growth is exciting, then we had a very exciting year.’
Stuart Fuller, King & Wood Mallesons
TURNING THE CORNER
‘Eighteen months into the new strategy and we remain on course. Income at the end of year one was at the highest level since 2007/08. And we delivered a net cash positive position for the first time since 2009. With strong performances continuing across the business, and some exceptional wins, higher value assignments and enhanced panel positions, we remain encouraged.
The UK and international marketplace continues to be a tough environment. But this is – as we all know – the new normal. Consolidation, new entrants and shrinking panels, higher client expectations and increased competition for the very best talent are also a fact of life.’
Monica Burch, senior partner, Addleshaw Goddard
STAYING FOCUSED
‘The UK market remains a little fragile, but there is plenty of liquidity so deal flows are strong. An early resolution to the EU debate would be welcomed by all. It’s an unhelpful distraction. We have reaped the benefit of targeted, sector-oriented international expansion. Our infrastructure-focused offering in Australia has given us a boost across Asia-Pacific, while our focus on the technology sector in and around Munich has also helped us compete in a challenging market.’
Richard Foley, senior partner, Pinsent Masons
SELF-EFFICIENCY
‘The world is changing rapidly for our clients and we need to be constantly adapting to those changes too. We are also doing everything we can to improve our efficiency and to work as innovatively as possible. Next year I expect to see even more support needed from clients across borders, with more intensity. And there continues to be an unprecedented level of global regulatory activity.’
Steve Immelt, chief executive, Hogan Lovells