Lisbon annual report
Foreign investment driving growth in Portuguese law
firms’ banking and M&A practices
Law firms need to adapt to the cultural shift brought about by a new generation of lawyers – this
involves implementing new business models that align with this change of mentality
Lisbon law firms are enjoying an
extended period of growth, with
banking and finance, M&A and
real estate generating a substantial
volume of work, says Maria João
Ricou, Portugal managing partner at
Cuatrecasas, Gonçalves Pereira.
Portugal continues to attract
foreign investment with the country’s
economic indicators ensuring the
outlook for the country is positive,
says Ricou. “International investors’
interest in Portuguese assets shows no
signs of declining,” she adds. “This is
generating prime work for law firms,
particularly in real estate, M&A and
banking and finance.”
Despite the buoyant economy,
Ricou believes it is unlikely that new
international players will enter the
country’s legal market. “The Lisbon
market is small and very competitive,”
she says. “We are currently benefiting
from a positive economic environment
but the capacity for new players is still
limited.”
According to Ricou, Portuguese law
firms face the same challenges that are
affecting the industry on a global scale.
“Portuguese law firms, like firms in
other markets, experience difficulties
with regard to innovation,” she
explains.
Ricou says using new technology to
improve efficiency, without impacting
on the quality of work, is one of the
major challenges law firms face.
“The capacity to lead on innovation
in the sector, while coping with
digital transformation is now a major
differentiator – this is something that
requires substantial investment and
significant adjustments.”
Ricou also believes that law firms
need to adapt to the cultural shift
brought about by a new generation
of lawyers. “Law firms will need to
implement new models of working that
align with this change of mentality and
the new culture that is developing with
the new generations,” she remarks.
Maria João Ricou
Some mid-sized Portuguese firms may need to
merge to stay competitive
Some mid-sized Portuguese law firms
will be forced to merge in order to
remain competitive in the market,
according to CCA Ontier managing
partner Domingos Cruz.
Cruz adds that firms that fit into
the mid-sized category need to make
some crucial decisions with regard
to how they are going to position
themselves in the market. “I believe
there will be a concentration because
the medium-sized law firms will need
to choose where they want to be,” he
says. “If they don’t choose, and they
are passive, they will be integrated
into other law firms.” Cruz adds that
he also expects some “demergers”
involving law firms, though he doubts
that these will “change the game”
from a legal market perspective.
There has been considerable
foreign direct investment in Portugal,
particularly in the real estate sector
where there have been a lot of new
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developments, not only in Lisbon, but
also in other cities in Portugal, says
Cruz. “This has definitely been a boost
for the economy,” he adds. In addition,
Cruz says there has been an increase
in M&A deals, as well as a surge in
arbitration.
The technology, media and
telecommunications sector has also
generated a significant amount of
instructions, particularly in relation to
the issue of data protection, says Cruz.
He adds: “There has also been a lot of
concentration, and changes of control,
in the insurance sector.” The main
challenge facing law firms is that clients
are “more and more sophisticated and
want more for less”, according to Cruz.
He says that how firms’ address these
issues “depends on their strategy”.
But he adds that a key challenge facing
firms is to be “more cost efficient,
while not losing the ability to provide
excellent legal services”.
Domingos Cruz
September / October 2018 • IBERIAN LAWYER • 37