Legal Business

The Last Word: Market comment

Penny Angell, Hogan Lovells, LB305, December 2021

‘A client said to me during the first Covid wave: “I stand in awe of the superior business model of law firms — because you will normally need a lawyer, whether you want one or not”.’ Penny Angell, Hogan Lovells

From innovation to economic headwinds to premature reports of the demise of the Magic Circle, leaders at Legal Business 100 firms give us their views on the past financial year and look ahead to the next

Never waste a good crisis

‘There’s a flipside to most crises for lawyers — in fact, a client said to me during the first Covid wave: “Yet again I stand in awe of the superior business model of law firms — because you will normally need a lawyer, whether you want one or not”.’
Penny Angell, UK managing partner, Hogan Lovells

Full circle

‘The death of the Magic Circle has been called incorrectly. There are areas of the market where the US firms have taken work away from the Magic Circle, but in a year’s time, the Magic Circle could be flying high and all those firms with a very strong emphasis on alternatives could be looking less strong. It is just a timing issue. They’ve had a strong year and I wouldn’t read too much into the fact that they’ve been outshone by the US firms in recent years – that could all reverse.’
Sebastian Prichard Jones, senior partner, Macfarlanes

Branding matters

‘We don’t want to be jack of all trades, master of none. Of course, we provide services across all sector groups and across the full corporate piece, but it’s our specific sector focuses that have created more brand awareness in the market, which is a strong reason for our success.’
Rob Shooter, managing partner, Fieldfisher

Tipping point

‘It feels like there has been a tipping point in the last 12 to 18 months in terms of the level of focus and commitment that D&I issues are getting from management and senior executive teams across law firms. You can see that in the appointments and promotions that are being made and the commitments that organisations are making within the community. They are no longer just talking about it, but really delivering on the change as well.’
Georgia Dawson, senior partner, Freshfields

Gone Fishing

‘I don’t want to talk about fish or ponds, or any of the usual LB100 clichés. I could spend a lot of time with you talking about the mid-tier label – I would urge you to spend time thinking about it. Each firm runs its business on its own strategic priority, so I wouldn’t draw any particular comparisons.’
John Cleland, managing partner, Pinsent Masons

Money for nothing

‘If I were a GC, I would be thinking really hard about what I was paying for – I am not going to fund inefficiency. For some, raising the NQ rates is a way of dealing with poor culture. We have got to offer more than just huge pay packets; you need opportunities to grow and a good culture. When I speak to our junior lawyers, they are really switched on with what they want from their career. Money is one part of it but if you asked them to rank the factors, I don’t think it would make the top five. More important to them will be “how quickly will I progress my career? How much exposure will I get to top clients?”’
John Wood, managing partner, TLT

Strong pipeline

‘This year has seen deal activity at slightly lower levels, but our pipeline looks strong. We’re still working on a significant number of major M&A mandates and have a strong flow of energy and infrastructure and investment funds work, in addition to this we’re also seeing a growing volume of contentious work.’
Paul Lewis, managing partner, Linklaters

Open mind

‘Clients are always growing, wanting more value and more innovation. They look for a comprehensive service, they want deep expertise not just for the biggest transactions but in ways that can support them at different stages of their growth. Clients need their law firms to innovate through better use of technology with an open mindset to innovation.’
Penelope Warne, senior partner, CMS

God knows

‘Russia invading Ukraine, energy prices, talks of recession. That’s not something that we can really control. We are definitely anticipating some headwinds, but sitting here today, which is two or three weeks short of our half year we’re on track for our targets. What is the second half going to look like? God only knows, but we’re confident. We know our clients and our clients are entrepreneurial. They’re seeing this as an opportunity.’
Grant Gordon, managing partner, Fladgate