Lisbon 2016 | Page 3

Lisbon annual report for M & A work for law firms in Portugal are declining as the market reduces in size . He continues : “ Over the past years , a lot of the work has been related to damage control , such as insolvency matters , restructuring and reorganisation .” Meanwhile , CCA Ontier partner Domingos Cruz says there is a shift in Portugal to more innovative industries , which is generating a lot of foreign investment . He adds that this trend is creating plenty of opportunities for law firms .
Paying the right price Pricing is currently a major challenge for law firms in Portugal , according to one partner at a Lisbon firm . He adds : “ Law firms are growing , but Portugal has the lowest hourly rates in Western Europe .” In general , demand for legal services is growing in Portugal , according to Nuno Azevedo Neves , partner at ABBC . “ It ’ s now about managing the growth and the profitability of firms , but having growth and having profitability are different things with different challenges ,” he adds . “ The world , and the way business is done , is becoming more complex , but crises are also opportunities , both in the domestic market and in outbound work , which represents a particularly big opportunity .”
Nuno Galvão Teles , managing partner of MLGTS , says that one of the biggest challenges for law firms is how to manage people . He adds : “ The younger generation of lawyers are different from previous generations , work-life balance is more important to them .” Retaining talent is one of the key issues for law firms , says Rodrigo Almeida Dias , partner at FCB Sociedade de Advogados . He continues : “ There is also pressure to reduce fees so the challenge [ for law firms ] may ultimately be to keep a good economic balance and not increase bank debt .”
Luís Pais Antunes , managing partner of PLMJ , says a key challenge facing law firms is “ attracting and retaining talent ”. He adds : “ The professionals of
What are currently the biggest opportunities for law firms in the Lisbon market ?
“ Most departments are very busy , with M & A , banking , real estate , litigation and oil & gas standing out . I expect this trend to continue . The biggest opportunities lie in the fast and ever-changing economic landscape , which has transformed the legal market . It is now much more transparent , a level playing field where firms compete for clients who put aside decades-old alignments to look for the quality and price that suits them better .” João Vieira de Almeida , managing partner , Vieira de Almeida
“ We are seeing different types of deals happening such as loan portfolio sales , disposal of real estate assets , corporate restructurings and bonds issues . Some of these deals are still driven by distressed sellers or in relation to distressed assets . On the other hand , the banking sector continues its process of restructuring and consolidation . For example , the sale process of Novo Banco is under way , Fosun announced its interest in acquiring a qualified stake in BCP , the recapitalisation of the state-owned bank Caixa Geral de Depósitos was just approved by the European Commission – and may imply the issuance of some debt instruments by Caixa – and Banco BPI is subject to a takeover launched by CaixaBank . Furthermore , following the resolution measure applied last year to Banif , a new SVP was incorporated ( Oitante ) with the purpose of selling some of the assets previously owned by Banif that were not acquired by Banco Santander . Such deals have attracted a new set of international investors – including private equity houses – that are now showing an interest in Portuguese assets .” António Soares , national managing partner ( Portugal ), Linklaters
“ Whether via privatisation of state-owned assets , restructuring , distressed deals or more standard transactions , quite a significant number of sophisticated international players entered the Portuguese market , many as newcomers . Both the nature and the number of transactions – as well as the type of investors – were uncommon if not unseen in the past . These factors increased the need for high-level legal advice in the market to a level compared to that in any major business centre around the world . This ongoing demand for high-end legal advice presents the biggest opportunity .” Francisco Peña , Lisbon resident partner , Gómez-Acebo & Pombo
“ The market in Portugal is sending mixed signals . In some sectors there is an increase in legal work and mandates , but others are still at a low level . The real estate retail , M & A , restructuring and financial sectors show some growth , but this has not happened in other areas . The growth is mainly due to foreign investment in Portugal , as in general , domestic investment by Portuguese companies in Portugal remains low . This is not a good scenario because it does not allow growth to consolidate and become solid . However , for foreign investors there are great opportunities , especially in real estate and in the transactional market involving medium and large companies . These investment opportunities also end up being opportunities for law firms .” Nelson Raposo Bernardo , managing partner , Raposo Bernardo
“ There are two different kinds of opportunities in the Portuguese market for law firms . One kind is related to the immigration flow our country has been registering for the past few years , mainly because of ‘ Golden Visa ’ and non-permanent residents programmes , with the related real estate and corporate matters that are usually associated with those sorts of applications . On the other hand , Portuguese law firms – and in this case we refer mainly to those based in Lisbon – have great opportunities to grow their international business , either by advising investors who wish to enter the Portuguese market or by advising Portuguese investors who wish to expand their business abroad .” Vítor Marques da Cruz , managing partner , Marques da Cruz & Associados
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