Though the landscape has shifted as a result of the pandemic, the entry of international players and the ongoing digital transformation, independent law firms in Spain and Portugal continue to rise to the occasion.
The M&A market took an inevitable knock due to Covid-19, but Spanish firms’ optimism appeared justified, with high liquidity and low interest rates continuing to fuel M&A activity in 2021. ‘There has been strong investor interest in sectors such as renewable energy, technology, real estate, health, finance and agri-food,’ notes Fernando Vives, executive chair of Garrigues.
Multibillion-euro deals have not stopped either: Cuatrecasas’ advice to French construction giant Vinci on the €4.9bn acquisition of Cobra from ACS group, and Uría Menéndez’s advice to Telefónica on its acquisition – alongside TIM and Claro – of the mobile assets of Oi for €2.7bn, are two examples.
In neighbouring Portugal, the outlook for 2022 is encouraging, with strong activity in the energy, infrastructure, telecoms and technology segments expected to drive a dynamic M&A market. International investment and private equity players are predicted to be behind many of the largest business transactions, a pre-pandemic trend that is still prevalent.
‘On top of this, the injection of public funds through the Recovery and Resilience Plan will bring great dynamism to companies and – even if indirectly – will feed their appetite for mergers and consolidations,’ says Bruno Ferreira, managing partner at PLMJ, who also foresees growing momentum for sustainable financing structures, including green and blue bonds.
‘We strongly believe that diverse teams can lead to better outcomes in legal services.’
Bruno Ferreira, PLMJ
As in previous periods of turbulence, particularly the global financial crisis, firms in Iberia have needed to adapt to the new reality produced by the coronavirus pandemic. ‘We all hope that 2022 will be the year of recovery post-Covid, but there are enough clouds on the horizon to keep our optimism in check,’ notes Vives. Part of the challenge comes from the demand from clients for faster solutions to their problems and certainty in decision-making. ‘In this context, law firms need to accelerate the pace of their digitalisation. We need to focus on systematising and “productising” services aided by the development of technology, which will open up new business,’ he continues.
As far as the provision of legal services in Portugal is concerned, challenges remain largely the same as pre-pandemic days. The need to invest heavily in cyber security and innovation across all aspects of the business, and to adapt to client expectations, are put forward by Morais Leitão, Galvão Teles, Soares da Silva & Associados’ managing partner, Nuno Galvão Teles, as key priorities. ‘It’s all about better firm efficiencies – in terms of teams, management, pricing – and improved client experiences, through new forms of interaction and delivering legal services as products,’ he argues.
Besides weathering the challenges and opportunities brought by the widespread adoption of digital technologies in the provision of legal services, firms must learn how to embrace more people-centric initiatives, notes VdA’s current managing partner João Vieira de Almeida. ‘This means not just adapting to flexible work arrangements and/or increasing pay, but also understanding what differentiates them in terms of a people-centred cultural organisation: what is the “glue” the firm is made of that makes it more attractive in the long-run?,’ he says. ‘It is time for law firms to walk the talk.’
When it comes to staying competitive in a busy and challenging market, firms are quick to recognise the crucial importance of hiring and retaining the best talent. ‘We currently operate in a people’s market: there is more demand for talent than supply of talent. It is challenging. As a firm, you need to understand the type of people you want and what they expect,’ says Pedro Pérez-Llorca, senior partner at Pérez-Llorca.
Additionally, implementing inclusive policies are paramount to firms’ recruitment strategies. ‘Diversity policies should find the right balance between promoting meritocracy and addressing the structural barriers affecting certain segments of the population, such as women in their professional lives,’ says Ferreira. ‘We strongly believe that diverse teams can lead to better outcomes in legal services.’
While the continued impact of the pandemic makes it difficult to predict future trends with full confidence, independent firms in Iberia are looking to 2022 and beyond with reasonable optimism. This is in part founded on the ongoing need and demand from clients for domestic firms: ‘The strength of independent firms arises from the significant increase in regulatory and litigation hurdles to cross-border deals. Clients need solid, full-service capabilities and robust local expertise,’ concludes Pérez-Llorca. LB
| Rank (by L500 ranking) | Firm | Region | Total lawyers | Total partners | Promotions | Offices | Partner hires |
|---|---|---|---|---|---|---|---|
| 7 | Uría Menéndez | Iberia | 583 | 130 | 6 | 12 | 1 |
| 10 | Cuatrecasas | Iberia | 1,099 | 230 | 7 | 27 | 3 |
| 11 | Garrigues | Iberia | 1,503 | 326 | 14 | 31 | 3 |
| 27 | Gómez-Acebo & Pombo | Iberia | 310 | 47 | 4 | 9 | 2 |
| 29 | Pérez-Llorca | Iberia | 261 | 51 | 4 | 4 | 8 |
| 42 | VdA | Iberia | 324 | 55 | 4 | 3 | 4 |
| 44 | PLMJ | Iberia | 290 | 48 | 2 | 4 | 2 |
| 45 | Morais Leitão, Galvão Teles, Soares da Silva & Associados | Iberia | 262 | 100 | 8 | 6 | 1 |