November December 2016 Iberian Lawyer | Page 30

Company & Corporate annual report of law firms. He continues: “We have seen the best year ever in 2015 and 2016 is looking good, but we need to focus on selective transactions – M&A is lucrative, but it generates a lot of conflicts of interest.” Artificial intelligence Artificial intelligence is expected to have an impact on corporate and M&A practices, according to Alonso. “Computers will be completing due diligence work in a few hours that would require several days for trainees and junior lawyers,” he adds. Araoz & Rueda partner Pedro Rueda says that artificial intelligence will soon be “broadly available” to all law firms. Rueda also has faith that his firm’s strategy of remaining independent is the right one: “Being independent gives us an edge and helps us in getting referrals from law firms without a presence here [in Spain].” PwC partner Javier Gómez says that, if lawyers are able to take the initiative when dealing with clients, they will become the client’s “trusted adviser”. But he adds maintaining profit levels is a challenge for law firms. “If fees don’t get higher, there is a need to reduce costs.” Cybersecurity is a major challenge for law firms, according to Alonso. He adds: “Law firms keep the most sensitive information of major corporations and, for this reason, they are a major target for hackers. National governments and other leading institutions, even the FBI and the CIA, have suffered attacks from hackers in the past and, unfortunately, it is only a matter of Portugal: What are the biggest opportunities for law firms in the corporate/M&A sector? “There are good opportunities for private equity houses, while Portuguese large and medium-sized corporates are still deleveraging and selling very good assets at good prices. Moreover, there is tendency in the market to unbundle the operational side from the ownership of the assets. We are also expecting that the financial sector will continue to ‘clean’ its balance sheets.” Jorge M. Bleck, partner, Vieira de Almeida “There has been a general feeling that the Portuguese economy is finally in recovery. This confidence may encourage M&A transactions. Apart from the domestic market, one of the biggest opportunities for law firms in the corporate/M&A sector is the African market, with special focus on the SubSaharan jurisdictions. The mining and energy sectors, tourism, telecoms, health and construction are becoming increasingly more attractive to foreign investors.” Alberto Galhardo Simões, partner, Miranda time before law firms also suffer serious attacks. Cybersecurity is, no doubt, a major priority for any law firm.” Internationalisation is another major challenge facing law firms, says Cuatrecasas partner Javier Villasante. “Most of our main corporate clients are going international and major Spanish law firms are implementing strategies to follow them” he says. In addition, providing sufficient inspiration to young lawyers is also a challenge for firms, according to Villasante: “Not every associate wants to become partner, and we need to motivate them, especially those willing to pursue the partnership track”. Meanwhile, Villasante says diversity is a key issue facing law firms. “We need to promote policies that prove more “Due to the increasing complexity of applicable law and the expanding regulations in most areas, M&A transactions are more exposed to legal risks involving many areas (labour, licensing, environmental, litigation, tax, IT and IP, for example), which creates opportunities for lawyers. Meanwhile, managers are becoming more focused on compliance concerns.” Alexandre Jardim, partner, PBBR “Adding value to clients by offering them a high degree of specialisation and a full-service approach - it is critical that they get strong and integrated support from us in times of economic uncertainty and complexity. That’s why flexibility, comprehensiveness and geographical footprint are key.” Pedro Sá, partner, PRA – Raposo, Sá Miranda & Associados “The hospitality industry shall be a key driver for the M&A sector, along with continued activity in infrastructure. Distressed assets coming out of banks along with banking M&A and consolidation will continue to be one of the largest sources of work.” Mafalda Barreto, partner, Gómez-Acebo & Pombo “Financial sector M&A will continue to generate excellent opportunities. The greater presence of private equity funds and international investment firms in the Portuguese market will continue to generate opportunities. The real estate and tourism sectors will continue to generate deals, and several projects that were “on hold” may now proceed. Start-ups are growing in Portugal, and the recent Web Summit may be a sign of a sector that will continue to attract investors and entrepreneurs to Portugal.” Nuno Azevedo Neves, partner, ABBC “With corporations looking globally for further growth, there is a greater need for law firms who understand the global requirements of their businesses. The shift in global economic power has brought a new legion of foreign investors from countries such as China, Russia and India, which have significantly changed the global business landscape. We may potential