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Morillo , partner at Roca Junyent . “ There is a lot of liquidity in the market ,” he adds . One partner remarks that , due to the highlycompetitive nature of the M & A market in Spain , the vendors are more commonly conducting full due diligence exercises so the “ sellers ’ legal advisers are doing a lot more of the work . The partner adds that some corporate lawyers do work for clients “ for nothing in the first phase ” as some private equity clients are reluctant to pay legal fees if the deal is not completed . There is a feeling that private equity funds are more likely to switch legal service providers , whereas , with corporations , a relationship of trust with their lawyers is more important .
One partner argues that his firm provides work for clients on a complimentary basis , or at a reduced rate , with the aim of clawing back fees when billing for subsequent work . However , another partner at a rival firm says this is unrealistic : “ I can ’ t believe in one deal that you will recover fees from a previous deal . We [ Spanish law firms ] are softer than Anglo-Saxon firms in terms of fees – clients pay fees for failed deals in France , for example , that they wouldn ’ t do in Spain .”
Spanish law firms need to “ maintain red lines ” when it comes to fees and stop being so willing to do work at lower rates ,” says one market source . The source adds that the Spanish market is a sophisticated market and it should act as such . Another partner remarks : “ When clients ask for an engagement letter , firms should not go down from the quoted figure , but some clients are getting fees that are 50 per cent less than that .” However , one Madrid-based partner at an Anglo- Saxon firm remarks : “ If we can ’ t bring prices down , we would be fired .” Meanwhile , Ortiz argues that the level of expertise at law firms in Spain is very high . He adds : “ International clients often acknowledge this and remark on the high quality they find in the Spanish legal market .”
Uría Menéndez partner Manuel Echenique says prominent investment banks are not currently as involved in the market for M & A advice on deals in Spain as in the pre-crisis period . He adds : “ The M & A boutiques are gaining significant market share , even in significant M & A transactions where no balance sheet is required from the investment bank .” Echenique adds that with the new macro-economic environment , corporate and M & A work should again be the “ engine ”
Spain : What are the biggest opportunities for law firms in the corporate / M & A sector ?
“ In the current economic and political context , the M & A market generally and the Spanish market in particular remain very attractive . A number of the opportunities will come from cross-border deals . Renewed access to bank financing will also create opportunities in the sector . In the Iberian market , there will be opportunities for investors in traditional sectors of the economy ( such as retail and tourism ) but also in distressed assets , infrastructure or renewable energy .” Alberto Frasquet , partner , Herbert Smith Freehills
“ Assisting international investors , private equity firms , corporations and banks with their entire corporate / M & A process . This involves the identification of the main interests and concerns of each client , while considering the specific particularities of target companies . This is only possible by ( i ) understanding their businesses , sectors , organisations and their actual needs ; ( ii ) being able to offer cross-functional advisory services ; ( iii ) focusing on providing high added-value advice while finding technological solutions applicable to non-core and lower value-added transaction areas .” Sharon Izaguirre , partner , Deloitte Legal
“ I believe the opportunity is to offer more than legal expertise , that is , to offer a combination of legal expertise and commercial / industry experience . Clients look for global solutions to their problems – for instance , legal advice combined with financial advice , or ability to originate a transaction for the client .” Álvaro Sánchez- López Chicheri , partner , Lener
The outcome of the US presidential elections , and the path chosen by the British Government to untie the existing links between the EU and the UK , will be crucial in understanding how robust global M & A activity will be in 2017 and subsequent years . A rebalancing of political and economic relationships between countries and regions should be expected . In this scenario , M & A deals , both globally and locally , should regain momentum .” Gonzalo Cerón , partner , Olleros Abogados
“ Digital business , life sciences and healthcare , financial institutions , energy and real estate are some of the sectors where opportunities will arise .” Jordi Casas , partner , Osborne Clarke
“ Apart from traditional sectors ( such as industry , real estate and leisure ), IT , sports and start-ups represent a unique opportunity . These are growing businesses in areas which are still not mature and in which there is still a long way to go . Clients come up with good ideas and projects but need help on how to develop them with legal certainty and due protection of their interests . Firms with good multidisciplinary teams can contribute to make these projects sound and reliable , which will attract the interest of investors and will facilitate access to bank credit .” Jordi López Batet , managing partner , Pintó Ruiz & Del Valle
“ Brexit could be an opportunity for Spain and for M & A lawyers – investors will focus on opportunities in other countries such as Spain , France , Germany or Italy instead of the UK .” Francisco Lacasa Lobera , partner , AGM Abogados
“ Restructuring in banking , energy and construction .” Fernando de las Cuevas , partner , Gómez-Acebo & Pombo
>> www . iberianlawyer . com November / December 2016 • IBERIAN LAWYER • 27