Lisbon 2016 | Page 2

Lisbon annual report Darkening clouds? In the short term, banking and finance-related work will sustain many law firms in Lisbon, but the longer term outlook is more uncertain and legal market consolidation is looking likely Banking and finance-related work will be the lifeblood of Lisbon’s law firms for some years to come. The country’s financial institutions have not yet eradicated all of their problems and, in addition to the expectation that the banking sector will undergo a further period of consolidation, lawyers will also be able to feed off the plentiful finance-related litigation that is currently ongoing. But while law firms’ prospects look good in the medium to short term, the outlook for the long term is less certain. Lisbon lawyers have benefitted from the global financial crisis as their firms have steadily grown revenue, but if the day comes when the Portuguese economy finds itself on a firmer footing, a number of firms could find themselves starting to struggle. Indeed, some lawyers predict that, despite the plentiful legal work available, some Lisbon firms will be forced to merge much sooner – perhaps even in the next year – in order to remain viable entities. Managing partners are also bracing themselves for the prospect of the ‘Big Four’ consultancy firms upping their efforts to muscle into the Portuguese legal market. In last year, perhaps gives us an indication of the strategy they will adopt. Indeed, senior figures in the legal market expect two other members of the ´Big Four’ to make significant moves in this respect in the coming 12 months. Unsolved problems Banking and finance-related matters are creating considerable opportunities for lawyers, according to Antonio Villacampa, partner The younger generation at Uría Menéndez. of lawyers are different He adds that the Portuguese financial from previous generations, sector has not work-life balance is more solved its problems important to them. and highlights the problems Nuno Galvão Teles surrounding MLGTS the proposed privatisation of Novo Banco. In addition, Villacampa adds that there is also a significant what way will they do this? It’s amount of M&A, litigation and unclear at present, but the fact that restructuring work. Deloitte welcomed Lisbon firm Paulo Câmara, managing CTSU – Sociedade de Advogados partner of Sérvulo & Associados, into its legal network in the “ 28 • IBERIAN LAWYER • September / October 2016 ” says law firms are experiencing an increase in workload in the areas of real estate and data protection. He adds that the “pressing need” for banking sector consolidation will also create opportunities for lawyers. Câmara says that new players – particularly venture capitalists – are targeting investments in the Portuguese market. Real estate and tax-related matters are creating a lot of work for lawyers in Portugal, according to Caiado Guerreiro managing partner João Caiado Guerreiro. He also says that lawyers are receiving plenty of instructions in relation to the restructuring of the financial sector, and fintech in particular. Abreu Advogados founding partner Miguel Teixeira de Abreu says that, while Portugal is not a market that generates major M&A work, there is currently a real estate boom in the country: “There are a lot of family offices investing in real estate, and I think the real estate prices have considerable potential for growth.” In general, Teixeira de Abreu says opportunities www.iberianlawyer.com