Law firm profile
Rising up
Revenue is on the increase again at Araoz & Rueda after several tough years – though the firm has considered a number of merger offers in the past , it continues to cling fiercely to its independence
After a number of years of declining revenues , there are signs that Spanish M & A boutique firm Araoz & Rueda is turning a corner . In 2015 , the firm reported annual revenues of € 5.6 million , up 19 per cent on the previous year ’ s total of € 4.7 million and the highest yearly billing figure since 2012 . What has brought about the change in fortunes ? Partner Pedro Rueda sums it up thus : “ We ’ re mainly a transactional firm , M & A activity has recovered in the areas we target – we ’ re focused on mid-sized and small deals .” Rueda highlights the energy sector , in particular , as being “ extremely active ” and says that , in addition , arbitration , employment and restructuring work is also on the increase .
As the revenue figures indicate , the 2008 financial crisis was tough on the firm . It now has 30 lawyers in total – ten partners and 20 associates – marginally fewer than the 33 it had before the crisis started . Rueda says that the firm ’ s strategy for dealing with the difficult economic
Araoz & Rueda : Recent instructions
conditions was to not replace lawyers that left for other firms and keep expenditure to a minimum . “ Though our income reduced , we have small overheads and we managed to keep profitability ,” says
September 2016 : Advised Black Toro Capital ( BTC ) on a € 30 million investment in shoe retailer Marypaz . The investment – which gave Black Toro Capital a 60 per cent controlling stake in Marypaz – took the form of an initial € 10 million equity injection into the company , as well as an additional € 20m investment via a convertible security . The Araoz & Rueda team was led by partners Alejandro Fernández de Araoz and Guillermo Yuste and included associate Andrés Mochales .
July 2016 : Advised French residential care home provider Orpea on the acquisition of Spanish nursing home provider Sanyres . Sanyres has 18 centres for the elderly across Spain in locations including Madrid , Malaga and Cordoba . The company employs more than 1,500 people and its 2015 turnover was € 55 million . The Araoz & Rueda team advising on the deal was led by partner Francisco Solchaga .
April 2016 : Advised Elevar Equity on the Spanish Law aspects of peer-to-peer lending platform Afluenta ’ s $ 8 million series B funding round . The funding was provided by Elevar Equity and the International Finance Corporation , with each organisation investing $ 4 million .
Rueda . “ We ’ re very prudent with our expenses , though we have kept investing in mentoring , preparing and training our associates .”
Clients still loyal Rueda rejects suggestions that the firm ’ s revenue dropped in recent years because it was losing a lot of clients – he says that the firm regularly monitors the amount of clients it gains and loses and concludes that clients have generally remained loyal and that the decrease in revenue was due to a decline in deals activity .
Rueda admits that , during the crisis years , with the economic conditions taking their toll on the firm , the partners spent time reconsidering their strategy . “ We wondered in the middle of the crisis whether our template makes sense , but we have remained profitable ,” says Rueda . “ 2015 was a very good year and , in 2016 , we will try to increase our revenue .”
There have been many occasions since Araoz & Rueda was formed in 1984 when the firm has been
20 • IBERIAN LAWYER • September / October 2016 www . iberianlawyer . com