Barcelona e-report 2017 BCN e-report | Page 7

Barcelona annual report Firms in Barcelona have an opportunity to grow with their entrepreneurial clients The city’s dynamic economy is cultivating a wave of new technology, which law firms can learn from and consequently start doing business differently Barcelona has a very innovative economy that is ushering in new technology and this gives law firms a great opportunity to learn from, and grow with, entrepreneurial clients, says Toni de Weest Prat, managing partner of Andersen Tax & Legal in Barcelona. “Taking into account the current environment, the biggest opportunity for law firms is the fact that we are in a very dynamic economy which means we can do things in a way that is a little different to how they have been done in the past,” De Weest Prat explains. “We are seeing a market that is very active in start-ups and new technology, and which allows lawyers to invest in people and technology and learn from our clients and at the same time grow with them, and that is a little different to other parts of Spain,” he says. world” as well as determining how much investment they will make in technology and people, and how they will approach such investment in terms of both money and time. He adds: “Barcelona is sexy, it’s a city that is connected to the world and it’s a gateway to the southern European market.” Watch at Iberian Lawyer TV `Sexy´ Barcelona De Weest Prat adds that the challenge for law firms is adapting to this “new Barcelona offering ‘more opportunities for investors’ than Madrid Barcelona currently offers more opportunities for foreign investors than Madrid, according to Agustín Bou, partner at Jausas. “These cities have always been viewed as complementary but different,” Bou explains. “Madrid is a place where all the financial acti vity takes place, while in Barcelona there is more activity in industrial services, tourism and telecoms.” He adds: “However, as the focus of financial markets in Madrid is on big enterprises, there are not so many business opportunities, whereas in Barcelona, there are a large amount of SMEs [small and medium-sized enterprises].” Though SME deals are worth far less than the major transactions, this issue is offset by the fact that there are hundreds of such deals, according to Bou. “We have international funds who tell us www.iberianlawyer.com that they are based in Madrid but spend the whole week travelling to Barcelona because that is where they are having the success,” he says. “Much of the economy in the Catalan region is international, with more than half of investors not Spaniards.” In addition, Barcelona is also enjoying a revival in the real estate sector, though Bou argues that a “small real estate bubble is coming back”. He adds that there has also been an increase in M&A activity. Bou says there are three distinct types of foreign investor currently interested in Barcelona. “The first type are companies related to IT businesses; the second are investment funds looking for a range of different opportunities, including distressed deals; and the third type are industrial investors – typically Chinese and Indian – trying to grow their business by buying companies in the Catalan region.” Barcelona is “back on the radar” of investments funds, in particular, Bou adds. Agustín Bou March / April 2017 • IBERIAN LAWYER • 45