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July/August 2006 Issue 166 |
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COVER STORY: Flying the flag
Brit firms fight back in the Global 50 |
One hawkish Linklaters partner tells this column that, while some of his partners are embarrassed by how much money they are making – the firm’s PEP has smashed the £1m barrier for the first time – he was more concerned by how much money they weren’t adding to the bottom line. His point was that when you’re part of the global elite you can’t simply benchmark yourself against the rest of the Magic Circle. It is the white shoe community in New York that you must be measured against.
While Legal Business has never been afraid to remind the UK elite of the superior financial management of US rivals, we are also inclined to give credit where it’s due. That the 2005/06 financials mark a watershed in the NYC/UK profit differential is beyond doubt. Buoyed by the surge in European M&A and capital markets activity, the Magic Circle is making up ground on the, admittedly still superior, figures posted by the Wall Street giants. UK leaders have addressed the bloated cost-bases and infrastuctures that did for their balance sheets circa 2002-04, and the restructuring and litigation bonanza that allowed the US firms to ride the global M&A downturn is on the wane. Of the top-five UK firms in our global elite, PEP is up an average of 22% this year; the corresponding figure for the top-five US firms is 14%. The ability of the Magic Circle to make gains in 2006/07 will, of course, depend largely on the strength of the European capital markets. In the meantime, raise a glass to the resurgent leaders of UK law.
James Baxter, editor
LEGAL BUSINESS APPOINTMENTS
The ultimate partner moves and our special Job of the Month section |
THE LEADER Pritchard
Herbert Smith awaits the Hand of Gold
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THE BUSINESS
Richard Lloyd reports on the challenges of the Far East. Plus exclusive news and the best market analysis |
THE FORUM Financial management
Julia Whittle, principal at Punter Southall Financial Management, on determining the best pensions provisions for partners |
 Ashurst Playing it safe
Ashurst’s failed US merger attempts have caused it to scale back its global ambitions and focus on the European market. Vanessa Pawsey examines whether it’s got what it takes to be an international player |
 Lobbying Cash for questions
The lucrative world of lobbying is becoming an increasingly popular practice area for law firms, writes Anthony Notaras. But, following recent scandals, is it worth the risk? |
O’Melveny & Myers Chasing Apollo
O’Melveny & Myers is halfway through a five-year plan to transform itself from local Californian firm to global leader. Claire Smith finds out whether it is on track |
COVER STORY: The Global 50 2006 Rule Britannia
Legal Business reveals the vital statistics of the world’s 50 leading law firms, including an in-depth focus on the top-15 Global Elite firms |
 Portugal focus On the defensive
Portugal is facing two of the biggest hostile takeover deals it has ever seen. Miguel Cortez analyses the bids for Portugal Telecom and Banco BPI
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THE LAST WORD
Simon Goldberg leads the glamorous life of a media lawyer at Cannes Film Festival
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