Madrid annual report
Another partner at a ‘Magic Circle’
your number of lawyers? We
firm in Madrid comments that,
are recruiting more and we are
though his firm has a “special
working more hours.” Eversheds
group” for project management
Sutherland Nicea managing
tasks, partners often “react badly”
partner Juan E. Díaz Hidalgo says
to having to deal with them,
that his firm’s revenue grew in the
last year despite the
fact Spain has a very
competitive market
The challenge for law
with many “very
firms is how to cope with
good law firms”. He
identifies banking
more work.
and insurance-related
Pedro Rueda
work as potential
Araoz & Rueda
growth areas in
future.
“
Rueda managing partner Pedro
Rueda. “The challenge [for law
firms] is how to cope with more
work, for example, do you increase
Reacting badly
As law firms strive
to increase efficiency,
law firms “might need different
lawyers in future”, argues one
Madrid-based managing partner.
He adds: “We are becoming more
efficient and are acting as project
managers in some transactions.”
What are currently the biggest opportunities for law
firms in Madrid?
“We expect European M&A to increase in value from $319bn
to $459bn this year. There will be significant activity in the
healthcare, banking and high tech sectors. In the aftermath
of the crisis, Spanish companies have an outstanding global
footprint and international investors are strongly targeting our
country.” José María Alonso, Madrid managing partner, Baker
McKenzie
“The number of transactions has risen considerably in recent
months and that upward trend is expected to conti nue
throughout 2017. Increased activity has been felt primarily
in the real estate, energy and infrastructure sectors - there is
increased appetite among financial buyers to acquire assets
and platforms in those sectors in Spain. We are also seeing a
significant increase in investment by large Spanish companies
abroad.” Miguel Riaño, managing partner, Herbert Smith
Freehills
“During the last few months, we have perceived a significant
increase in M&A activity in Spain, probably as a consequence
of improvement in political stability in both Spain and
continental Europe. The real estate, energy and retail sectors
seem to be the most attractive for foreign investors that have
an appetite for assets in Spain. At the same time, the parties
involved in bidding processes are remaining quite cautious
and, even if there is significant competition, the bidders are
being quite conservative from a valuation point of view.”
Roberto Pomares, partner, King & Wood Mallesons
www.iberianlawyer.com
”
though clients are very supportive
of the concept of project managers.
Another partner remarks that
clients appreciate the high level of
information and feedback they get
from project managers.
“In the domestic arena, I believe the recovery of the Spanish
economy is a great opportunity for law firms. It seems that we
have left the crisis behind and the economy is more dynamic.
This should lead to more work and, hopefully, an increase in
legal fees. In the international sphere, Brexit might impact on
legal market talent, particularly young European lawyers who
previously may have crossed the Channel for training. Further,
the fear of the supranational in the United Kingdom might
translate into suspicion towards international arbitration,
preparing the ground for the rise of alternative pro-European
and pro-international jurisdictions such as Madrid.” David
Arias, partner, Arias SLP
“In the criminal law field, regulations related to the criminal
liability of legal persons, as well as ensuring corporate
compliance has become a brand-new scope of activity.
Meanwhile, the Spanish tax authorities’ continuous pursuit of
taxpayers is a key source of business.” Miguel Ángel Garrido
Riosalido, managing partner, Garrido Abogados
“The recovery of the real estate market and an
entrepreneurial environment that favours the development
of new businesses and companies. The big question is what
impact Brexit will have – if, and how, Madrid will benefit
from the search for ‘continental platforms’ by companies
operating in the UK, will most certainly have an impact on
the development of Madrid’s legal market. If the number
of companies operating in the EU market from Spain, and
specifically Madrid, increases, it will drive demand for legal
consultancy services.” Manuel Esteves de Albuquerque,
senior associate, Raposo Bernardo
May / June 2017 • IBERIAN LAWYER • 27
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