Despite Brexit, Trump and trade wars signalling a tentative prognosis from Global 100 leaders for the remainder of the year, many firms entered 2019 with engines blazing
No clarity
‘Volatility, trade wars, Brexit and Trump notwithstanding, it’s been a good financial year. Each of our practice areas are strong in terms of work and economically. Mandates are flowing in, it’s a positive story. Threats are out there. Brexit will be priced into the market for the next eight to ten years. There will be peaks and troughs and no clarity for a while.’
Andrew Ballheimer, managing partner, Allen & Overy
Remarkable result
‘Every part of our firm, every region of Dentons, had an exceptionally strong 2018. That’s remarkable given the unique economic and political events occurring around the world. Clients increasingly come to us with the request to service them across the world.’
Elliott Portnoy, chief executive, Dentons
Defying gravity
‘The transactional market has stayed strong throughout the period after the referendum on Brexit. The reality is people expected a slowdown on the back of that. Other things have happened with the exchange rate, which created a different kind of value in the market and led to a resurgence in transactional activity in corporate and real estate. The last two years the results of some of the big law firms are some of the best years they’ve ever had in revenue growth. Those markets are continuing to be relatively robust. The US market is exceptionally strong across the board, Europe has seen good growth, Asia has bounced back after a slower period 12 or so months ago. The Middle East had a good year as well.’
Lee Ranson, co-chief executive, Eversheds Sutherland
Tough act to follow
‘I am a reasonably confident person. We will remain busy. Clients say if they had waited for the outcome of Brexit they would have done nothing for the last three years. Having said that, Brexit being kicked down the road until at least October is unhelpful. People are worried there will be fewer $10bn+ European deals than in the last year. Some of the high-end M&A could be quieter between now and October. Trade wars worry people as well. If you look at a lot of economic indicators, people would expect some economic correction. Given the increased political uncertainty, [2018/19] might be a difficult year to match.’
Charlie Jacobs, senior partner, Linklaters
Lion’s share
‘It’s been a pretty tough environment but considering that, it’s been a good year and a very good year for deals. Away from M&A there’s been a lot of investigations work, and that just seems to continue. There are signs of a slowdown, the calendar year has not been as strong for deals, with trade wars and Brexit, but we still get a whopping great chunk of premium international deals.’
Steve Cooke, senior partner, Slaughter and May
Options open
‘Each of our regions has outperformed with double-digit revenue growth in our corporate, finance, funds, restructuring and dispute resolution practices and above 20% revenue growth in projects and real estate. We have had significant Asia-Pacific growth, even if a slowdown is possible, and some would say likely, in the UK in coming months due to Brexit. Predictions of a slowdown in the US and globally in late 2020 after the US election can be mitigated if you ensure you have a diversified firm.’
Paul Jenkins, managing partner, Ashurst
Weather eye
‘We are confident but there are choppy waters. We need to keep a weather eye out generally. Europe grew – it was up across most practice areas although the capital markets scene was gloomier in EMEA. Volatility, trade issues and Brexit are all making life trickier. Recent German manufacturer figures are all looking questionable in terms of continuing GDP growth. There is mixed data coming out of the industrial manufacturers. Disputes and private equity are very strong. I would also emphasise the strength of our US practice – we see opportunities to capture growth in the US legal sector.’
Oliver Brettle, executive committee member, White & Case
Gone with the wind
‘We talk of tailwinds and headwinds. On the tailwind side, M&A has been strong, as has the focus on the regulation of financial services. Europe is a big tailwind – it’s very strong and we see opportunities for clients. In terms of headwinds, what worries me most is the workforce model – the pay wars that have been covered recently show that we have this 60 or 70-year-old model that’s starting to creak. There are Millennials that don’t want to just subscribe to the orthodoxy that’s prevailed.’
Mark Rigotti, chief executive, Herbert Smith Freehills