Lisbon annual report
Riding
the wave
The biggest law firms in
Portugal are experiencing
substantial growth, but
managing partners are well
aware that a downturn in the
economy may not be too far
away
Given that Portugal’s leading law
firms reported substantial increases
in revenue in the last year – up to
15 per cent in some cases – there is
considerable optimism in the sector.
Foreign investors, including venture
capital funds, are pumping money
into the country as they sense an
opportunity to get some healthy
returns on investment.
The real estate sector is proving
particularly attractive – greenfield
investments are on the rise, with
hotel and residential developments
proving particularly popular.
Meanwhile, in the financial sector,
sales of non-performing loans are
generating substantial work for law
firms.
However, there are some clouds
on the horizon. Firms may be
receiving plenty of instructions
now, but law firm leaders know
that an economic downturn may hit
the country in the next two or three
years. It’s not something managing
partners want to think about too
much, because, as some privately
acknowledge, their firms are simply
not yet ready to deal with any
contraction in the economy.
For some firms, the future
looks very uncertain indeed, and
it’s anticipated that there will be
mergers among some of the smaller
firms in the market as they try to
reach a scale that will enable them
to adequately compete.
Artificial intelligence (AI) could
potentially give some firms the
impetus they need by enabling
them to increase efficiency and
provide a more streamlined service
to clients. However, managing
partners face the problem of having
to decide which type of AI to invest
in and when to make such an
investment.
www.iberianlawyer.com
Lawyers in
demand, but
smaller firms
may need to
merge
The legal services market in Portugal
is growing, but for some law firms,
keeping up with the market leaders
will be a struggle, so mergers between
smaller players are sure to follow
Event: Iberian Lawyer Global
Roundtable
Host: CCA Ontier
Demand for legal services has been
on the rise in Portugal for the last
two or three years, participants
in the Iberian Lawyer Lisbon
Roundtable said. Indeed, this
assertion is backed up by data
that shows the three biggest firms
in Portugal – MLGTS, Vieira de
Almeida and PLMJ – all experienced
double-digit growth last year. The
country’s real estate sector has
been a key driver of growth, while
tax, antitrust, labour and finance
are other practice areas that are
generating an increasing amount
of work for law firms. However,
law firms still face the challenge of
having to attract the best talent in a
very competitive market, while the
issue of artificial intelligence is also
creating a great deal of uncertainty,
with firms often unsure about what
type of technology to invest in.
There has been substantial
activity in the Portuguese real
estate sector, while there has also
been an increase in litigation, said
CCA Ontier managing partner
Domingos Cruz. He added that
venture capital funds are showing
September / October 2018 • IBERIAN LAWYER • 31