Madrid e-Report 2012

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EU & COMPETITION REPORT

IBERIAN LAWYER

MADRID ANNUAL REPORT 2012Curing the capital

An abstract from Iberian LawyerMay / June 2012

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May / June 2012 • IBERIAN LAWYER • www.iberianlawyer.com

MADRID ANNUAL REPORT

27

Spain is dominating the headlines for all the wrong reasons, most recently a banking sector bailout. Madrid, with its potential to generate wealth and attract investment, has to be the driving force for recovery. What the future holds is anyone’s guess, but what is certain is that the current crisis is most defi nitely a game changer.

The very recent, and very publicised, bailout of Spain´s banking sector has so far done litt le to restore confi dence in the market. With the much needed fi nancial injection into the banking sector, even Prime Minister Rajoy acknowledged a bad year lay ahead. What the future holds is currently anyone’s guess, but what is certain is that the current crisis is most defi nitely a game changer.

“We no longer see this as a crisis, but rather as a whole new landscape,” says Pedro Pérez-Llorca, Managing Partner at Pérez-Llorca. “We are going through a kind of economic Ice Age from which we may not emerge for many years.”

As Spain’s capital city, Madrid, however, has the advantage, and privilege, of housing its Government, public administrations and fi nancial institutions. The down side is that when things go wrong, catastrophically in this case, then the blame lands fi rmly at the city’s feet – fairly or unfairly, the capital is intrinsically linked to the rest of the country. Madrid, however, is doing a bett er job of defending itself than other regions in Spain, say lawyers.

Capital benefi tsSince Spain’s economy peaked in

España está últimamente en los titulares de toda la prensa internacional

aunque por malas noticias, siendo lo más sonado

el rescate de la banca. Madrid se prevé como

foco económico conductor de la recuperación

española gracias a su capacidad de generar

riqueza y atraer inversión. En el informe anual sobre

el Mercado Jurídico en Madrid los abogados afi rman que lo único que tienen claro es

que el mercado se está transformando y aún

veremos más cambios.

2007/2008, things have been gett ing worse year-on-year, acknowledges Fernando Torrente, Partner at Cuatrecasas, Gonçalves Pereira in Madrid, “but Madrid’s economy has, so far, performed bett er than the rest of Spain”.

Being the capital city has its advantages. It att racts talent looking for opportunities that no other region in Spain can off er, and its infrastructure, laws and regulations favour economic and business activities, which generates confi dence among investors. And this has a direct impact on its ability to att ract foreign investment, something the country sorely needs.

Madrid can clearly off er more resources and a bett er infrastructure than other cities, and is most likely the fi rst port of call for most investors looking to come into Spain. Nowadays, the city off ers facilities for entrepreneurs, says Ignacio Legido, Partner at BDO Abogados in Madrid and Barcelona, where business development, as well as the possibility of being closer to fi nancial entities and to the main corporations of the country, come fi rst.

For Juan Ferré, Managing Partner of the Spanish offi ces of PLUTA, the

Curing the capital

• IBERIAN LAWYER • May / June 2012 www.iberianlawyer.com28

German insolvency specialist, the opportunities lie in the fact that the major fi nancial, political and economic players have their headquarters in Madrid.

However, the economy of the Community of Madrid and the city itself have, throughout history, followed the same cycles as the Spanish economy, explains Manuel Martín, Managing Partner at Gómez-Acebo & Pombo. When the national economy shows growth, that is refl ected in the accounts of the Community of Madrid and vice versa. Therefore with Spain currently showing negative growth, Madrid’s advantages may not, however, be enough to weather this particular storm.

“This is a crisis unlike any other, and in Spain we haven’t yet been exposed to all its elements,” says José Luis Huerta, Managing Partner at Hogan Lovells in Madrid. “The UK and US markets, for example, are very diff erent to ours – at least there you are seeing some movement and signs of recovery.”

This comparison to other jurisdictions is something that is clearly a sore point for Spain, especially as the eyes of the world are resting on its fate. “If we are to compete with other countries,” says Pérez-Llorca at Pérez-Llorca, “we need to change our economy as theirs are already more productive than ours”.

Legislate to recuperateThe Spanish Government seems to be the key to helping the country’s economy emerge from the mess it is currently in. And the way in which Spain manages the crisis, is unfortunately tied into how the Government legislates, says Iñaki Gabilondo, Managing Partner of Freshfi elds Bruckhaus Deringer in Spain. And legislate they have.

The urgent reforms they have been pushing through over the past year cover many essential aspects of Spain´s infrastructure, including an overhaul of its fi nancial system and reform of its labour and tax regulations. And there is an upside to this for law fi rms, as it will probably generate a great deal of work during the coming months, which for Javier Ybañez, Partner at Garrigues in Madrid, “presents opportunities for law fi rms like us”.

The reforms have received mostly positive reviews from lawyers, who perceive them as steps in the right direction with the potential to gain the confi dence of

the fi nancial markets, reduce the unemployment and promote economic growth.

There is also, however, a feeling among lawyers that the Government is acting in an improvised and reactive way.

“Every Friday something seems to change,” explains Luis Briones, Managing Partner of Baker & McKenzie in Madrid. Having not implemented reforms for around 12 years, it is as if the Government are now trying to carry out as many reforms as they can at the same time.

While no short-term eff ects are anticipated, other than strengthening the confi dence in the solvency of Spain and its fi nancial entities, says Rafael Montejo, Managing Partner at Osborne Clarke in Madrid, the feeling is that the positive eff ects are only likely in the mid to long-term.

The longer-term view is therefore more positive, particularly in relation to the creation of more jobs and regaining credibility within the international market, in which Spain has lost so much ground over the past year, says José María de Lorenzo, Managing Partner at Irwin Mitchell in Spain.

But to really get the economy going, what Spain needs is a strong banking sector again and to get rid of its hellish real estate problems – something that will require the Government to fi nd even more imaginative solutions to pull Spain out of the crisis.

A ‘buyers’ marketImagination is something the legal market has had litt le of. Historically, it has had a very limited vision

when it comes to planning for the future, according to Ignacio Ojanguren, Managing Partner at Cliff ord Chance in Spain, and the crisis has only served to highlight its lack of foresight.

So while Spain has been on the decline, the legal market has followed suit. It has signifi cantly decreased over the past few years, says Legido at BDO Abogados, explaining this to be because of the


We no longer see this as a crisis, but rather as a whole new landscape. We are going through a kind of economic Ice Age from which we may not emerge for many years.Pedro Pérez-Llorca, Managing Partner, Pérez-Llorca

“”


Strategy in a stormForward planning in the current environment is no easy task. With the level of uncertainty around, and the goal posts moving at such an alarming rate, today´s strategy could be tomorrow’s new problems to address. However, strategic thinking and planning do not have to be set in stone; they can be adapted and adjusted and reviewed, says Serena Argente Escartín at Raposo Bernardo in Madrid. In fact most fi rms have been and are continuing to review and revise strategies on an almost weekly basis, with cutt ing headcount and fees being the implied, but not admitt ed, result.

The main challenge at the moment, according to Martín at Gómez-Acebo & Pombo, is to maintain profi tability during the crisis at a reasonable level. The key for a redefi nition of any strategy, adds Rafael Alonso, Managing Partner at Squire Sanders in Spain, is to be focused on helping in the development of your client’s expansion plans and management.

Firms are therefore having to adapt to the current circumstances of their clients while keeping up their profi tability and many are doing so by lowering their internal costs to counterbalance a decrease in revenue. Firms are keeping a close eye on their internal structures and the remuneration of their lawyers, in particular, and leaving for later those activities that are not absolutely essential, for example, opening new offi ces abroad says Francisco G. Prol, Partner at Prol y Asociados in Madrid.

Spanish fi rms with international offi ces, lawyers say, have the benefi t of the revenue abroad to off set the decrease in domestic activity. However, this does have a downside. “In a global fi rm, you are aware of the performance of your offi ces in other jurisdictions, which at this moment demands additional eff orts to keep your margins,” says Ojanguren at Cliff ord Chance. “Offi ces in other jurisdictions are having good levels of activity and having very good results, which only puts additional pressure on us here in Madrid.”

Strategies are also leaning towards adjusting to a wider practice area focus. Firms with a strong multi-disciplinary element will be in a bett er position to meet the challenges of the economic crisis head-on,

low level of business activity and the economic asphyxia that Spanish companies are suff ering.

Law fi rms that previously had offi ces in seven or eight locations throughout Spain are now only in two or three at most – but always in Madrid, adds Pablo Mayor, Partner at Allen & Overy. “They are no longer interested in more regional locations, something that will have a big impact on Spain in the long-term.”

In Madrid specifi cally, the feeling among lawyers is that there are clearly more opportunities than

elsewhere in Spain. “All the ‘big cases´ end up sooner or later in Madrid, assuming

they were not born in Madrid,” says Julio Veloso, Partner at Broseta Abogados

in Madrid, “and the capital is more active (or not as weak

and depressed) than the rest of the country.” This

does, however, mean greater and tougher

competition in the legal sector.

The number of bids for work has multiplied since the crisis, and law fi rms are seeing a

major increase in competition

between themselves. Additionally, new

players in the market are coming to compete with the established fi rms in certain areas, says Ojanguren at Cliff ord Chance, and in many cases being able to do so at lower prices.

According to Israel Gómez-Caro, Partner at GOLD Abogados in Madrid, larger fi rms will likely need to form alliances and mergers to maintain a dominant position in the market. This is something that could prove very fruitful as, given the challenging times, certain medium and smaller fi rms are more receptive to mergers or new alliances.

The overall consensus among lawyers is that the legal market has radically changed. “It’s a buyer’s market,” says Juan Jiménez-Laiglesia , Co-Managing Partner at DLA Piper Spain. But the agents of change have been the clients, he explains, and this time the change is permanent. “What shocks us most isn’t the change itself, but how quickly it took place, which makes it very diffi cult to prepare a solid strategy.”


It’s a buyer’s market. But the agents of change have been the clients, and this time the change is permanent. What shocks us most isn’t the change itself, but how quickly it took place, which makes it

very diffi cult to prepare a solid strategy. .Juan Jiménez-Laiglesia,

Co-Managing Partner, DLA Piper Spain

“”



adds Álvaro Sainz, Senior Partner at Herbert Smith Spain. “Investment across several practice areas and, therefore, the multi-disciplinary element of fi rms will dilute the risks they face, with some practice areas off sett ing the potential lower activity of others.”

Assisting clients with their own risk management has moved up the to-do list as “preventing risk is a value-add that is sett ing law fi rms apart from their competitors”, says Gabilondo at Freshfi elds. And ensuring their services fall under the heading of ‘a value-add’ and not just ‘commoditised’ is a high priority, say lawyers. For Luis Fernando Guerra, Managing Partner at Deloitt e Abogados y Asesores Tributarios, the challenge is knowing not to just off er one distinct advantage, but several diff erences with higher added value over other competitors.

Shift in activityFirms are, however, beginning to plan in a more realistic and current way. For Pérez-Llorca, “with our three main areas of work – corporate, litigation/regulatory and tax/employment, we don’t think about when they are going to recover to pre-crisis standards, but rather about growing them at the price and demand levels that the market off ers at the moment.”

And the market is currently very demanding in specifi c sectors, in particular, say lawyers, in insolvency and restructuring – which comes as no great surprise. This has increased considerably, explains Javier Vasserot, Managing Partner at Olswang Spain, but so has employment advice on collective dismissal procedures and collective suspension of employment contracts – a welcome factor arising from the recent labour reforms, lawyers agree. And legislative reforms are, and will continue, to generate a considerable amount of work as businesses are in need of advice on how to keep up.

There are fewer M&A opportunities, as investors are far more cautious than before. While there is money to spend, they are afraid of putt ing it on the table, says Juan Francisco

Falcón, Partner at Uría Menéndez in Madrid, and there continues to be a value gap in the perception of potential sellers and potential buyers.

However, lawyers agree that interest from foreign investors in Spanish distressed assets is on the rise, with some hinting that it is only distressed assets that businesses are being told to target. In fact, say lawyers, law fi rms are talking to clients ouside of the country to win new foreign

distressed investment work and target alternative capital providers.

Show me the moneySpanish law fi rms are dealing with fewer and lower-volume transactions and a more competitive and mature market, according to Federico Roig, Partner at Cuatrecasas, Gonçalves Pereira in Madrid, on top of which clients have restricted budgets, meaning that there is, and will continue to be, increased fee pressure.

With the commoditisation of legal services on the rise, all clients are asking for, and concerned about, is a lower price, says Mayor at Allen & Overy, which seems to be the consensus across the board. “Clients are asking me where we charge less,” adds Jiménez-Laiglesia at DLA Piper Spain, “and whether we can apply those discounts to all areas”.

The number of companies calling for fi rms to tender and pitch for work is increasing and the pressure on fees is becoming more and more aggressive, say lawyers. “Fortunately, we have had enough work to be able to refuse very ‘aggressive’ engagements on fees,” says Alejandro Fernández De Araoz, Partner at Araoz & Rueda in Madrid. “We have indeed lost work because we were not ready to lower fees, but we do not regret it. The fees quoted by some fi rms show how much they needed the work to ‘keep the wheel turning’.”

The danger here is of course that lowering fees and treating services as commodities means that once the crisis has (hopefully) passed, these services cannot revert back to value-add, lawyers agree.

In a global fi rm, you are aware of the performance of your offi ces in other jurisdictions, which at this moment demands additional efforts to keep your margins.Ignacio Ojanguren,Managing Partner,Clifford Chance, Madrid

“”

The economy of the Community of Madrid and the city itself have, throughout history, followed the

same cycles as the Spanish economy, so when the national economy shows growth, that is refl ected in the

accounts of the Community of Madrid and vice versa. .Manuel Martín, Managing Partner,

Gómez-Acebo & Pombo

“”



gett ing a huge reality check, says Jiménez-Laiglesia at DLA Piper Spain. “What was before, isn’t here anymore. But what is to come, hasn’t arrived yet.”

It is precisely this uncertainty that is making it so diffi cult to do business. There are investors out there who could inject much needed capital into the market, say lawyers, but the uncertainty is holding them back. To gain certainty, investment is needed to jump start the economy, so there is a catch-22 scenario that is keeping everyone on edge.

People are not only economically exhausted but also physically exhausted, explains Veloso at Broseta Abogados. “After four years, we need positive thinking and hope as much as we need fi nancial and economic recovery.”

Among lawyers, however, there is still a level of optimism. “There are lots of opportunities if you really look for them, and there is work apart from M&A transactions,” says Ybañez at Garrigues. “We should realise that we are privileged as a profession in comparison to others, so we should take advantage of the situation and change what the crisis has shown needs to be changed.”

Lawyers must fully adapt to reality, helping clients to perform in the toughest conditions and seeking opportunities, according to Torrente at Cuatrecasas, Gonçalves Pereira. “We will need to capitalise and adapt, something the legal market has the capacity to do, particularly in Spain where competition among law fi rms has been really tough over the past decades.”

However, with a strong capacity to att ract investment initiatives from both institutional and private investors, Madrid is still the fi nancial hub of Spain, says Hugo Écija, Managing Partner at Ecija.

Nobody knows exactly what is going to happen, as the fate of the Euro and the Eurozone still hang in the balance. But Madrid, with its potential to generate wealth and att ract investment, its affi nity with the Government and with its own economical policy, has to be the driving force for recovery.

Whether the bailout will be enough to kick start the process only time will tell. At this point in time, Spain is taking its medicine, says de Lorenzo at Irwin Mitchell Abogados. But it may take a while before we see any positive eff ects.

“As lawyers, we need to be advocates of the value of our services and our value-add,” warns Falcón at Uría Menéndez. “If we drop our fees unreasonably then we will be contributing to the impression that the value of our work isn’t important.”

Specialisation, lawyers say, is key to ensuring clients are aware of the level of value-add. The legal market tends to a higher degree of specialisation, says Gonzalo Stampa, Partner at arbitration boutique Stampa Abogados, a characteristic for which the client will pay.

Companies are also rationalising the cost of having external advisers, according to Legido at BDO Abogados, which leads them to be much more demanding regarding the type of fi rm, the professionals, the services and the fees they are prepared to accept.

Clients in crisisIn diffi cult times, lawyers themselves need to be wary, and pay very close att ention to the working capital and carefully scrutinise the solvency of their clients. When clients are having fi nancial diffi culties, explains Fernández De Araoz at Araoz & Rueda, they tend to squeeze fees and postpone payments to service providers because in these times, ‘cash is king’ more than ever.

With clients facing more diffi culties when trying to obtain fi nance and fi nding it harder to keep growing, they have been forced to reduce their costs, including legal, says Vasserot at Olswang Spain. “They are therefore no longer thinking of legal services provided by fi rms as a ‘service’, but rather as an ‘expense’ that must be reduced.”

Therefore lawyers are noticing that companies are rethinking the structure of in-house legal departments and keeping more legal work internally. Clients used to have a diff erent law fi rm in each jurisdiction, says Briones at Baker & McKenzie. “Now, their panels of lawyers are much smaller, therefore competition among law fi rms is fi erce.”

Clients are also becoming even more demanding of the services their external law fi rms provide. They no longer require only legal expertise from their advisers, according to Roig at Cuatrecasas, Gonçalves Pereira, but also expect a knowledge of their business sector and to advise them according to the circumstances of each sector and the corresponding risks.

For Montejo at Osborne Clarke, this adds to an already incredibly competitive market, and only those fi rms that are clearly focused on understanding their clients´ businesses will succeed in this critical environment.

Looking to the futureThere is a lack of realism in Spain’s economy, and it is

With the commoditisation of legal services on the rise, all clients are

asking for, and concerned with, is a lower price. .

Pablo Mayor, Partner,

Allen & Overy

“”



The real estate sector – watching and waitingThe sector has ground to a halt, fi nancing has drastically reduced and business opportunities are few and far between

The real estate sector is in a state of absolute paralysis, says Antonio Cañadas, Partner at Roca Junyent in Madrid, with everyone watching to see what is going to happen with the banks and the subsequent implications. “Businesses with large real estate portfolios of fi nished products, such as fl ats and offi ces, are waiting to see the fi nal price at which they can put their products onto the market.”

There are also no real business opportunities around, and real estate companies, developers and constructors are occupying themselves by taking care of and renegotiating their debts with the banks, says Cañadas, – “it’s the most they can do at the moment”.

It is, however, a very weak time to be renegotiating. “Banks aren’t interested in increasing their real estate arrangements,” says Cañadas. “They would rather continue counting on the credit they have from businesses that look to be doing ‘ok’ in the medium to

long-term rather than enforce the rights and guarantees they have and end up with even more real estate on their books.”

While there has been no great diff erence in activity from 2011, last year the big players in international real estate investment still came to Spain looking for opportunities. This year, however “those same players haven’t even shown up”, says Cañadas. “Investors are waiting to see what develops with the banks’ large real estate portfolios and then at what price they can start to make off ers.”

Financing is also causing problems for real estate clients. “The fl uidity of credit is not a worry, it’s a stark reality,” says Cañadas. “Financing has drastically reduced and there is nothing that can currently help the banking sector to recover. They can only wait and see the conditions in which the banks´ real estate portfolios will reach the market.”

El sector inmobiliario se encuentra en un estado de absoluta parálisis, afi rma Antonio Cañadas, de Roca Junyent, además de expectante en cuanto a las decisiones que se tomen en el sector de la banca y las implicaciones que éstas puedan tener. En el sector inmobiliario el foco está ahora en la renegociación de la deuda con los bancos.

Antonio Cañadas

The current climate sees restructuring remaining high on the agenda, says Alejandro Fernández de Araoz, Managing Partner at Araoz & Rueda in Madrid, with four main areas of activity keeping Madrid’s restructuring lawyers busy.

The fi rst is defensive mergers or consolidations. “We are very active in the restructuring of cajas,” says Fernández de Araoz, “representing, for example, Kleinwort Benson and Ripplewood in building a consortium to invest in Spanish fi nancial institutions”.

The second is helping position the buyers of distressed assets. “We are seeing increasing operations in that market,” says Fernández de Araoz, “with banks selling non-performing organisations and a great deal of consumer loan portfolios, which are much more diffi cult to manage”. The cajas are gett ing rid of those portfolios and having to restructure the way people pay back their debts. “However, chasing debtors requires a massive amount of resources,” he adds, “and this is causing

huge problems for the banks that don’t have the capital to do so”.

Third is restructuring debt agreements with the banks. “The competition reform has done a lot to facilitate refi nance agreements, giving them a legal ‘safe harbour status’ so that they cannot be challenged by the receiver if the company goes bust,” says Fernández de Araoz “and there is a great deal of work around on refi nancing agreements”.

Fourth is employment. As the economy continues to suff er, sales go down and companies have to cut their workforce, he says. “There are predictions of massive unemployment by the end of 2012, and we are helping companies interpret the new Labour Regulation and deal with redundancies at a lower cost.”

As for 2012, insolvencies and restructurings are on the increase, says Fernández de Araoz, something that is going to continue well into 2013.

Restructuring continuing into 2013

Las reestructuraciones de las empresas siguen sucediéndose a consecuencia del clima económico actual, dice Alejandro Fernández de Araoz, de Araoz & Rueda, con cuatro áreas de actividad clave que mantienen ocupados a los abogados expertos en la materia.

Alejandro Fernández de Araoz



Litigate to accumulate Mediation and arbitration activity are on the rise in Spain, and Irwin Mitchell´s offi ce in Madrid is poised to capitalise

La ofi cina de Irwin Mitchell en Madrid ha conseguido

en el último año un crecimiento del 17% en su facturación y ya está

planeando los siguientes pasos a seguir, afi rma

José María De Lorenzo. Para el 2013 pretende duplicar el número de

abogados y abrir nuevas áreas de práctica.

José María De Lorenzo

Arbitration is increasing “across the board”, says Gonzalo Stampa, Founding Partner of Stampa Abogados in Madrid, which recently incorporated Juan Blanco as a Partner to reinforce the arbitration and litigation practice.

The economic downturn has prompted a specifi c uptake in contractual batt les as companies protect their businesses in light of shifting market dynamics. “Arbitration has been on the rise, whether it is in M&A, energy, construction or engineering,” says Stampa. “The disputes we have seen often centre on supply and construction contracts, where an existing contract has either not been fulfi lled or the agreement has changed considerably.”

The rise in arbitration is thanks, in part, to the increasing prominence of arbitration clauses within contracts, says Stampa, and therefore if a dispute arises from unfulfi lled obligations or changes in payments, arbitration is the fi rst course of action. The other major

factor is legislative reforms that can alter agreements, Stampa adds, with prime examples being the renewable energy sector, which recently saw the Government cut its feed-in tariff s for developers, as well as the restructuring of the cajas.

“Legislation has an impact on contracts,” Stampa says. “Those for a renewable energy project, for instance, were signed on the basis of payments at a set tariff . When the Government decides to reduce that tariff , all the contracts have to be reviewed.”

Stampa believes that clients are looking for the “personal touch” that can be off ered by specialist arbitrators rather than large-scale fi rms. He highlights the necessity for in-depth international knowledge and a range of disputes services.

“Clients also seek out individual lawyers rather than specifi c law fi rms when looking to arbitrate,” says Stampa. “Clients expect to pick up the phone and talk directly with the partner working on the case.”

A specialist approach to arbitration

La crisis ha originado una serie de confl ictos contractuales entre las

empresas, con una variante respecto a la

selección de árbitros o abogados procesalistas, afi rma Gonzalo Stampa,

de Stampa Abogados. Los clientes buscan el “toque

personal” que fi rmas especialistas pueden fácilmente ofrecerles.

Gonzalo Stampa

Irwin Mitchell’s route to Madrid has been markedly diff erent from most. The fi rm opened in Spain in 2005, specifi cally Malaga; not the fi rst destination for many fi rms of its size when entering into the Spanish market.

José María De Lorenzo, Managing Partner in Spain, explains that the Malaga offi ce initially focused on litigation for international clients but grew fast, resulting in more domestic clients requiring services, especially banks requiring defence counsel in civil cases. As the fi nancial hub of Spain, critical mass in Madrid was vital to meet changing client needs.

Irwin Mitchell’s Madrid foothold was consolidated 18 months ago with the takeover of L&E Solución Legal and Empresarial to take advantage of rising litigation and data protection demands.

“Spaniards are not historically as litigious as the UK, but there has been a signifi cant rise in activity since the downturn and the problems with the cajas,” says De Lorenzo. “Banks are increasingly facing claims regarding mortgage enforcement or the mis-

selling of products.”De Lorenzo points outs that Madrid is

not just about banking disputes; insurance and commercial litigation are also prevalent.

“We’re also seeing more mediation and arbitration, with alternative dispute resolution becoming an att ractive option because it is easier and cheaper than traditional litigation,” says De Lorenzo, “plus the Spanish civil courts can be slow in processing cases”.

Irwin Mitchell’s Madrid offi ce saw a 17 percent growth in revenue last year and is now looking at the next step of evolution. The branch started with three lawyers and currently has 17 – the ambition is to double that amount in 2013 and to expand further into dispute resolution and other practice areas.

With Irwin Mitchell as one of the fi rst fi rms to apply to become an alternative business structure (ABS) in the UK, it remains to be seen how this will aff ect its offi ces in Spain.

• IBERIAN LAWYER • May / June 2012 www.iberianlawyer.com34 www.iberianlawyer.com


It´s all about revenueWhen faced with the crisis, law fi rms have to demonstrate their added value by showing the effect it has on clients´ balance sheets

Despite the crisis, billing and client numbers have increased at BDO in Madrid more so than anywhere else in Spain, says Ignacio Legido, Managing Partner at BDO Abogados in Madrid, where the offi ce now services around 50 percent of BDO´s Spanish client base. But it is not all good news. “The market is depleting,” says Legido, “as businesses are doing more in-house, thinking much harder before externalising and really negotiating prices with their external law fi rms”.

In Madrid, medium to large businesses are looking for alternatives to the traditional law fi rm, says Legido. While four years ago, BDO was at the forefront of bundling legal, tax and fi nancial advice, others have followed suit. “Clients are looking for legal, tax and fi nancial advice all from one provider, and the legal market is having to adapt,“ says Legido. “The big fi rms will likely reduce their size and convert into big boutiques, while small fi rms will

become extremely specialised.” The market itself is also obliging law

fi rms to get even closer to their clients and off er additional services, says Legido, for example, BDO is providing free-of-charge in-house training to clients on recent legislative reforms. “Anglo-Saxon fi rms have already done this and some Spanish fi rms, like us, are doing the same – it is the road that fi rms are taking when faced with the crisis.”

For BDO, the coming months will continue to focus on growth and their policy of gett ing as close to in-house legal departments as possible to understand the needs and the direction of the business. “We have seen the results that this approach and our services have had on businesses’ revenues,” says Legido, “and to survive this crisis, law fi rms need to operate at the same commercial level as their clients and show the eff ect of their services on clients´ balance sheets”.

Las empresas estan cubriendo sus necesidades internamente y evitan externalizar servicios legales por la presión presupuestaria que tienen, afi rma Ignacio Legido, de BDO. Para sobrevivir a la crisis, los despachos deben operar con la misma visión comercial que sus clientes.

Ignacio Legido

The IP department at Madrid fi rm Suárez de la Dehesa, specialising in IP, audiovisual law and entertainment law, is currently very active in audiovisual production and distribution, both cinema and television, and cinema law and videogames, says José Antonio Suárez, co-Managing Partner of Suárez de la Dehesa.

“However, we are conscious that the panorama changed drastically at the start of 2012 as the number of fi lms being produced is markedly down from last year, and the industry is hoping for new regulation.”

While the cultural industries still have open lines of credit, investment itself is down. The EU Courts, however, are issuing a record amount of decisions aff ecting IP particularly software, says Suárez, which is keeping law fi rm departments busy.

They are also seeing a great deal of activity in videogames, especially in the development of apps. “Looking ahead,

software is going to have to share a great deal of space with the apps,” says Suárez, “and we’re working on making that happen”.

Looking ahead, law fi rms will be busy as businesses are ever more conscious of the value of IP, says Suárez, especially when it comes to its impact on their balance sheets.

“In Madrid, the big fi rms are reinforcing their IP departments and becoming more competitive. By the end of 2012, we could see big and medium fi rms incorporating teams in IP.”

Spain should also follow the UK’s lead, says Suárez, and start having agreements between ISPs and the cultural industries on copyright issues. “There is some movement but so far this has had to pass through the UK Court system. If Spain moves in the same direction then this could create opportunities for Spanish IP and boutique law fi rms.”

The value of IP moves up business agendas

Los Tribunales Europeos deliberan continuamente sobre temas relativos a la Propiedad Intelectual (PI). Por lo tanto, los despachos deben trabajar con el cliente para proteger el valor de la PI, afi rma José Antonio Suárez, de Suárez de la Dehesa, especialmente porque dicho valor puede infl uir en el balance de sus cuentas.

José Antonio Suárez


MADRID ANNUAL REPORTGUIDE TO LAW FIRMS

Sponsored section: A selection of law fi rms recommended within the internationally recognised directories and / or by clients.

Araoz & Rueda, Paseo de la Castellana 164, 28046 Madrid

Contact: Alejandro Fernández de AraozTel: +34 91 319 02 33 Fax: +34 91 319 13 50Email: [email protected] Web: www.araozyrueda.com Main practice areas: Corporate, M&A and Private Equity, Banking & Finance, Litigation & Arbitration, Insolvency & Restructuring, Energy, Labour, EU & Competition and Tax

Baker & McKenzie, Paseo de la Castellana 92, 28046 Madrid

Contact: Luis BrionesTel: +34 91 230 46 16 Fax: +34 91 230 51 45Email: [email protected] Web: www.bakermckenzie.com Main practice areas: Corporate & M&A, Banking & Finance, Tax, Employment, Public Law, IP, Competition & Antitrust, Insolvency & Restructuring, Energy, Infrastructure & Project Finance, Pharmaceuticals & Healthcare, IT and Real Estate

BDO Abogados, Paseo de Recoletos 37-41, 28004 Madrid

Contact: Ignacio LegidoTel: +34 91 436 41 95 Fax: +34 91 436 41 93Email: [email protected] Web: www.bdo.es/abogados Main practice areas: Corporate, M&A, Tax, Dispute Resolution, Insolvency & Restructuring, Employment, Public Law, IP & IT, Maritime & Transport and Real Estate

Broseta Abogados, Fernando el Santo 15, 28010 Madrid

Contact: Julio VelosoTel: +34 91 432 31 44 Fax: +34 91 432 31 44Email: [email protected] Web: www.broseta.com Main practice areas: Banking & Finance, Corporate, Insolvency & Litigation, Labour, Real Estate, Private Equity, Public Law, Tax, Wealth Management

Cuatrecasas, Gonçalves Pereira, Almagro 9, 28010 Madrid

Contact: Federico RoigTel: +34 91 524 71 88 Fax: +34 91 524 71 24Email: [email protected] Web: www.cuatrecasas.com Main practice areas: Corporate, Commercial, Energy, Logistics and Transport, M&A, Private Equity, Technology, Media and Telecommunications

Deloitte Abogados y Asesores Tributarios, Plaza Pablo Ruiz Picasso s/n, Torre Picasso, 28020 Madrid

Contact: Luis Fernando GuerraTel: +34 91 514 50 00 Fax: +34 91 524 51 80Email: [email protected] Web: www.deloittelegal.com Main practice areas: Tax, Arbitration & Litigation, Corporate & M&A, Labour, Banking & Finance, Real Estate, Restructuring & Insolvency, Capital Markets, TMT, Planning and Public Law

Clifford Chance, Paseo de la Castellana 110, 28046 Madrid

Contact: Ignacio OjangurenTel: +34 91 590 75 00 Fax: +34 91 590 75 75Email: [email protected] Web: www.cliffordchance.com Main practice areas: Corporate & M&A

Allen & Overy, Pedro de Valdivia 10, 28006 Madrid

Contact: Iñigo Gómez-JordanaTel: +34 91 782 98 00 Fax: +34 91 782 98 99Email: iñ[email protected] Web: www.allenovery.com Main practice areas: Corporate, M&A, Banking & Finance, Capital Markets, Tax, Employment, Public Law & Regulatory, Litigation & Arbitration, Insolvency & Restructuring, Regulated Sectors, Antitrust & EU Law


GUIDE TO LAW FIRMS



Ecija, Plaza Marqués de Salamanca 3-4, 28006 Madrid

Contact: Hugo ÉcijaTel: +34 91 781 61 60 Fax: +34 91 578 38 79Email: [email protected] Web: www.ecija.com Main practice areas: Corporate, M&A & PE, TMT, IP, Insolvency & Restructuring, Litigation & Arbitration, Employment, Public Law, Regulated Sectors, Tax and Real Estate

Garrigues, Hermosilla 3, 28001 Madrid

Contact: Fernando VivesTel: +34 91 514 52 00 Fax: +34 91 399 24 08Email: [email protected] Web: www.garrigues.com Main practice areas: Full Service Firm

Gold Abogados, Almagro 31, 3º Izq, 28010 Madrid

Contact: Israel Gómez-CaroTel: +34 91 702 08 68 Fax: +34 91 391 53 21Email: [email protected] Web: www.goldabogados.com Main practice areas: Banking & Finance, Project Finance, Competition & Regulatory and Litigation & Arbitration

Gómez-Acebo & Pombo, Paseo de la Castellana 216, 28046 Madrid

Contact: Manuel MartínTel: +34 91 582 91 00 Fax: +34 91 582 91 14Email: [email protected] Web: www.gomezacebo-pombo.comMain practice areas: Administrative & Regulatory, Banking & Finance, Communications & Audiovisual, Competition & EU, Corporate & Commercial, Criminal, Employment, IP & IT, Litigation & Arbitration, Private Equity, Real Estate, Property Development & Planning and Tax

Hogan Lovells, Paseo de la Castellana 51, 28046 Madrid

Contact: José Luis HuertaTel: +34 91 349 82 66 Fax: +34 91 349 82 01Email: [email protected] Web: www.hoganlovells.com Main practice areas: Banking & Finance, Competition, Corporate M&A & Private Equity, Employment, Energy, Infrastructure & Regulatory, Insurance & Reinsurance, IP, Dispute Resolution, Real Estate, TMT and Tax

Herbert Smith, Paseo de la Castellana 66, 28046 Madrid

Contact: Álvaro SainzTel: +34 91 423 40 00 Fax: +34 91 423 40 01Email: [email protected] Web: www.herbertsmith.com Main practice areas: Corporate & M&A, Energy & Infrastructure, Dispute resolution, Finance, EU & Competition, Employment, Private Equity, Public Law & Regulatory, Real Estate, Restructuring & Insolvency and Tax

DLA Piper, Paseo Castellana 35, 28046 Madrid

Contact: Juan Picón/Pilar Menor/Juan Jiménez-Laiglesia Tel: +34 91 319 12 12 Fax: +34 91 578 26 88Email: [email protected] Web: www.dlapiper.com Main practice areas: M&A & PE, Banking & Finance, Projects, Energy, Real Estate, EU & Competition, IP & IT, Employment, Litigation & Arbitration, Tax, Public Law, Capital Markets and Restructuring


GUIDE TO LAW FIRMS



Jones Day, Paseo de los Recoletos 37-41, 5º, 28046 Madrid

Contact: Mercedes Fernández FernándezTel: +34 91 520 39 39 Fax: +34 91 520 39 38Email: [email protected] Web: www.jonesday.com Main practice areas: M&A and PE, Banking and Finance, Global Disputes, Real Estate, Antitrust and Competition, Tax, Labour, Intellectual Property and Telecommunications

Olswang, Paseo de la Castellana 259C, 32°, 28046 Madrid

Contact: Javier VasserotTel: +34 91 187 19 21 Fax: +34 91 187 19 99Email: [email protected] Web: www.olswang.com Main practice areas: Corporate & M&A, Finance, Insolvency & Restructuring, Tax, Litigation & Arbitration, Public Law, Construction, Infrastructure & Project Finance, Employment, IP and TMT

Osborne Clarke, Paseo de la Castellana 52, 6º, 28046 Madrid

Contact: Rafael MontejoTel: +34 91 576 44 76 Fax: +34 91 576 74 85Email: [email protected] Web: www.osborneclarke.es Main practice areas: Corporate, M&A, Energy & Renewables, Private Equity, Financial Services, Health Care, Litigation, Tax and Employment

Pérez-Llorca, Alcalá 61, 28014 Madrid

Contact: Pedro Pérez-LlorcaTel: +34 91 436 04 25 Fax: +34 91 436 04 30Email: [email protected] Web: www.perezllorca.com Main practice areas: Corporate & M&A, Arbitration, Litigation, Capital Markets, Projects & Real Estate, Tax, Finance & Restructuring, Anti-trust & Regulatory and Employment

Prol y Asociados, Ebro 3, 28002 Madrid

Contact: Francisco G. Prol PérezTel: +34 91 563 06 01 Fax: +34 91 563 00 20Email: [email protected] Web: www.prol-asociados.com Main practice areas: Banking, Financing, Corporate, M&A, Capital Markets, Insolvency, Litigation, Arbitration and Employment

PLUTA, Maria de Molina 40, 28006 Madrid

Contact: Juan FerreTel: +34 91 577 72 41 Fax: +34 91 577 71 82Email: [email protected] Web: www.pluta.es Main practice areas: Insolvency and Restructuring

Irwin Mitchell, Plaza Pablo Ruiz Picasso, 1, 11B, 28020 Madrid

Contact: Jose María de LorenzoTel: +34 91 418 83 30 Fax: +34 91 770 47 62Email: [email protected] Web: www.irwinmitchell.es Main practice areas: Litigation & Arbitration, Employment, Data Protection, Corporate, Tax, Real Estate and Personal Injury


GUIDE TO LAW FIRMSMADRID ANNUAL REPORT


Raposo Bernardo, Paseo de la Castellana 126, 8º Izq, 28046 Madrid

Contact: Serena Argente EscartínTel: +34 91 745 08 74 Fax: +34 91 561 18 50Email: [email protected] Web: www.raposobernardo.com Main practice areas: Full Service Law Firm

Roca Junyent, José Abascal 56, 7º, 28003 Madrid

Contact: Antonio Cañadas AlonsoTel: +34 91 781 97 60 Fax: +34 91 781 97 64Email: [email protected] Web: www.rocajunyent.com Main practice areas: Automotive, Corporate Law and French Desk

Squire Sanders, Plaza Marqués de Salamanca 3-4, 28006 Madrid

Contact: Rafael AlonsoTel: +34 91 426 48 40 Fax: +34 91 435 98 15Email: [email protected] Web: www.squiresanders.com Main practice areas: Corporate Finance, Tax, Employment, Dispute Resolution, IP and Real Estate

Stampa Abogados, Pedro de Valdivia 8, 28006 Madrid

Contact: Gonzalo Stampa/Juan BlancoTel: +34 91 561 84 77 Fax: +34 91 563 67 10Email: [email protected]/ [email protected] Web: www.gstampa.com Main practice areas: Arbitration, Corporate & Commercial, Energy & Utilities, Litigation, Mediation, Construction & Engineering

Uría Menéndez, Príncipe de Vergara 187, Plaza Rodrigo Uría, 28002 Madrid

Contact: Rafael SebastiánTel: +34 91 586 04 30 Fax: +34 91 586 04 71Email: [email protected] Web: www.uria.com Main practice areas: Corporate & Commercial, Financial, Tax, Competition, IP, Telecommunications, Media & Entertainment, Litigation & Arbitration, Public, Real Estate, Environmental, Urban Planning, Employment & Pensions, Maritime and Transport

Suárez de la Dehesa Abogados, Paseo Pintor Rosales 40, 28008 Madrid

Contact: José Antonio Suárez LozanoTel: +34 91 559 59 99 Fax: +34 91 541 03 43Email: [email protected] Web: www.sdanet.com Main practice areas: Copyright, Audiovisual Law, Information & Communications Technologies and Entertainment Law in general

Ramón y Cajal, Almagro 16-18, 28010 Madrid

Contact: Francisco PaláTel: +34 91 576 19 00 Fax: +34 91 575 86 78 Email: [email protected] Web: www.ramonycajalabogados.com Main practice areas: Finance & Capital Markets


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