‘ Price is not necessarily the key consideration when choosing legal advisers ’
Client View
‘ Price is not necessarily the key consideration when choosing legal advisers ’
Argentina ’ s Banco Macro selects law firms based on a range of criteria including level of expertise , experience and responsiveness , says head of legal María José Van Morlegan
Although costs do play a role in the selection of external law firms , and ensuring value for money is a key consideration , price is not necessarily the guiding principle when it comes to choosing one firm over another , says María José Van Morlegan , head of legal at Argentina ’ s Banco Macro . “ There are many more factors to take into account in addition to financial considerations ,” she explains . Van Morlegan adds that , as a result , Banco Macro has not placed any budgetary restrictions on the hiring of external legal counsel .
Headquartered in Buenos Aires , Banco Macro is the largest private bank in Argentina , with a network of 454 offices and 8,915 employees . As well as providing banking services to more than 3.6 million retail customers , the bank has more than 90,360 corporate clients , frequently providing finance for crossborder M & A deals . Banco Macro reported net income of 3.1 billion Argentina pesos in the second quarter of 2018 , a 40 per cent increase on the same period of 2017 . Banco Macro reported a 40-per cent growth in net income year-on-year during the second quarter of this year , and the bank has one of the lowest nonperforming loan ratios in Argentina .
Need for ‘ added value ’ The bank employs a large team of inhouse legal counsel , which numbers more than 70 lawyers in total . Van Morlegan says a large proportion of the legal issues faced by the company can be resolved in-house , without resorting to external counsel . “ Our in-house lawyers are very involved in the day-to-day running of the company , and they are able to resolve many legal questions ,” she says . Van Morlegan adds that the preference is to handle most matters internally – the company will only consider outsourcing issues when there is a belief that an external advisor can provide ‘ added value ’, or in instances where Banco Macro is working alongside other partners and using the same legal counsel will help to streamline the process . For example , external counsel will be used when the work relates to project finance or privatepublic partnerships .
“ Since I ´ ve been part of Banco Macro , we have improved the capacity of the legal area , which has involved the ongoing training of our team ,” Van Morlegan explains . “ After two years of managing this area , I have also decided to handle a lot of projects internally because I have access to a very large and very capable team of in-house counsel ,” she says .
Pool of advisers Van Morlegan says Banco Macro has a well-established pool of external advisers , which includes Bruchou , Fernández Madero & Lombardi , which are frequently instructed in relation to banking and finance matters in Argentina . Since 2006 , Banco Macro has been listed on the New York Stock Exchange and consequently it has the need for legal advice from major international firms – to this end , the firm instructs Linklaters and Davis Polk .
Law firm selection The selection process for external counsel involves inviting at least three different law firms to bid for a particular project , explains Van Morlegan . The final decision is based on criteria ranging from the level of expertise and specific experience in similar projects , to responsiveness and involvement senior partner involvement . “ Expeditiousness is a key requirement for us , as is responsiveness ,” Van Morlegan says . “ We also expect senior partners to take on an active role and be available for us .”
Good track record require A law firm ’ s track record and experience in similar transactions is a key consideration , as is its ability to provide added value and work in close collaboration with the bank ’ s in-house legal team . “ I have a very large team of inhouse experts , so if I choose to outsource a particular matter it ’ s not due to a lack of resources , but rather because an external advisor will bring added value ,” Van Morlegan says , adding that , in many cases , the external firm will be required to work alongside in-house counsel . A good cultural match therefore becomes essential , as is a detailed understanding of the bank ’ s business , Van Morlegan says . She adds : “ All our external legal advisors have to demonstrate in-depth knowledge of our business ”.
María José Van Morlegan
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We expect senior partners to take on an active role and be available for us .
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María José Van Morlegan is head of legal at Argentina ’ s
Banco Macro
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