Madrid annual report
The new
Renaissance
Managing partners in Madrid say
that, given the revival in the Spanish
economy, firms have to take this
opportunity to reinvent the way they
do business.
Many lawyers are convinced that
the crisis is over but it would be
wrong to say they are unanimous
in this view. Yes, an increase
in M&A and capital markets is
fuelling optimism but there are a
still few voices sounding caution
and warning that there could still
be some troubled times ahead.
However, the overall feeling is
one of optimism. Yet challenges
remain – the younger generation
of lawyers are creating headaches
for managing partners in Madrid.
Some senior lawyers say associates
are less versatile than they used
to be as they tend to specialise too
soon in their learning and lack
the training to be an all-rounder.
Other managing partners remark
that associates are generally less
motivated and question whether
the legal profession still has the
allure it had in the past.
Despite these concerns,
workflow is increasing for firms
in Madrid. Baker & McKenzie
Madrid managing partner, José
María Alonso, says that, in the last
12 months, more opportunities
have opened up for law firms in
the Spanish market. “More foreign
investors are interested in Spain,
particularly in the real estate
market, and there is also more
capital markets work,” he adds.
Meanwhile, Alonso believes that
many Spanish clients – particularly
construction companies – are
looking to expand their businesses
in the Anglo-Saxon market,
How do you think the Madrid legal market will develop in
the next 12 months?
“It looks like there will continue to be plenty of activity in the future. It
seems reasonable to anticipate that M&A activity levels will increase
over the coming months, with international investors remaining very
active in the Spanish market and large Spanish corporates continuing
their expansion into foreign markets. Finance deals (banking and capital
markets) will follow this M&A activity, and better financing terms
available in the market will encourage the refinancing of existing debt
and business expansion.” Iñigo Berrícano, managing partner, Linklaters
“Firms need to be predictable in their fees and add value to their
services by introducing business opportunities and managing the client’s
expectations. Project management skills are increasingly demanded
from firms to get involved in the client’s strategic projects.” Rafael
Alonso, Madrid managing partner, Squire Patton Boggs
“Transactions are being executed more quickly, and we continue to
adapt by working smarter and more efficiently than ever before.”
Michael J. Willisch, resident partner, Davis Polk & Wardwell
“Clients are becoming more and more demanding, and they expect
from their lawyers not just proper legal advice but something else – they
require sector expertise and expertise in international transactions. We
need to be lawyers with a global mind-set. For transactions involving
investments outside Spain, the want to feel protected and fully
understood by their lawyers, therefore they demand local expertise
but also knowledge of the way in which things are done in their own
jurisdiction. In this regard, it is becoming quite common to have lawyers
involved from both the client’s own jurisdiction and the local jurisdiction
in which the client plans to invest.” Roberto Pomares, partner, King &
Wood Mallesons
26 • IBERIAN LAWYER • May / June 2015
especially the US.
José María Segovia, senior
partner at Uría Menéndez, says
one of the major changes has been
that “we no longer speak about the
crisis all the time”. He adds: “All the
law firms are working more, there
is an increase in M&A and capital
markets work, though there has
been an increase in litigation.”
Clifford Chance Spain’s
managing partner, Jaime Velázquez,
points out that there have been few
changes in the Spanish legal market
and highlights that the presence
of US firms is not as noticeable as
it is, for example, in the French or
German markets. He adds: “Spain
“The legal sector in Spain, like any other sector in the country,
is showing clear evidence of recovery and is adapting to a
post-crisis environment. Client segmentation, more defined and
specific legal requirements, competitive pressures, managerial
selling skills from lawyers and technological platforms are
among the changes law firms have to face in order to adapt
to the current situations and end up winning. In this moment,
differentiation from the competitor and delivering a distinctive
service to our high demand clients is key. Furthermore,
forecasting and embracing the changes to come in the year
ahead-mainly regarding the introduction of management
techniques and more sophisticated legal sectors- will keep the
law firms in the game.” Pilar Menor, country managing partner,
DLA Piper Spain
“In view of non-stop technological developments, we anticipate
an increase in litigations linked to the protection of intellectual
and industrial property. The main challenge for 2015 lies in
identifying the opportunities arising out of the new regulations,
especially in corporate taxation due to the numerous efficient
tax solutions now available when planning and implementing
investments and disinvestments, as well as in relation to
business restructurings and corporate reorganisations.” Adolf
Rousaud, mana