‘AI has not significantly changed the day-to-day operations of law firms. The emphasis is on staying alert and staying informed about ongoing developments.’ Didier Martin, Bredin Prat
As part of our annual Euro Elite report, management at independent firms in Europe give their views on today’s market challenges
Experience matters
‘We expect strong growth again this year. Our corporate and M&A practice will remain the driver and the rising insolvency figures will keep our restructuring practice busy. Transatlantic relations are increasingly coming to the fore. This applies both to takeovers of European, particularly German, companies by US private equity investors and strategic investors and to investment activity by German groups and companies in the US.
IPOs of European companies in the USA will also be in demand. We are well prepared for this, as we have already assisted German companies with their IPOs in New York in
the past.’
Alexander Ritvay, co-managing partner, Noerr
Status quo
‘With AI, we know there will be effects in the future but today it’s a different story – all law firms are starting some pilots or discussing plans with big players. Essentially, as of now, AI has not significantly changed the day-to-day operations of law firms. The emphasis is on staying alert, being agile, and staying informed about ongoing developments in the AI space.’
Didier Martin, partner, Bredin Prat
Happy with their lot
‘Generally, firms are not struggling so much. For international firms, it might be different because they might be trying to overpay people and over invest, but independent firms – they have what they have.’
Paweł Zdort, managing partner, Rymarz Zdort Maruta
Supply and demand
‘The fight for talent is still brutal. Over the last few years, the number of young people going in [to the legal market] hasn’t matched the increase in demand.’
Saulė Dagilytė, managing partner, Sorainen
Shortage of talent
‘Corporate legal departments have grown and become more sophisticated. And then there has been a completely new demand for legal talent in the form of startups and technology startups that we had not really had before. In the previous booms, we had not seen lawyers among the first ten or 20 employees of any startup. Now they seem to be. This could be because many startups are now looking at opportunities in regulated environments, whereas in the previous booms, regulation was less pervasive. The universities are not keeping up, so they are not adding new legal students and we really have a shortage of lawyers in Sweden and in Finland.’
Mikko Manner, managing partner, Roschier
Staying relevant
‘The challenge is to maintain sufficient capacity to manage the regulatory workload and to compensate for lower utilisation in other areas. Boutiques benefit from their specialised expertise but can hardly compensate for reduced demand and retain staff in the long term. Large international firms are struggling with high rates that are no longer suitable for all sectors. Law firms need to stay up to date and invest in their own tools.’
Elizabeth Lepique, managing partner, Luther
Great expectations
‘Clients’ expectations have shifted. They are looking for a more personalised, value-driven service with more transparent pricing and faster turnaround times. Business leaders are operating within an ever-more complex and restrictive environment. They expect their lawyers to deeply understand their business and implement comprehensive solutions that align with best industry practice.’
Jean-François Levraud, managing partner, Gide Loyrette Nouel
Pick and choose
‘In the past five-to-ten years, our clients, especially corporate clients, have changed quite a bit. Many general counsel from top Italian companies are coming from top Italian law firms, so they know what they can get very well. They know exactly where they can push for lower fees and compress law firms’ margins. Sometimes they are only asking for external advice on one piece of a complex transaction because they can do everything else in-house. They are becoming much more sophisticated and much more demanding. They will not come to a firm like ours for routine day-by-day advice. They are really looking for value-added services.’
Eliana Catalano, managing partner, BonelliErede