One of the largest buy-outs to hit the South Wales market during 2007 drew note for reasons other than its size: the principal legal advisers hailed not from
“The days have gone where just because a deal was happening on your patch, you had the right to receive a mandate,” says Morgan Cole corporate partner Johnathan Rees, adding that the leveraged finance teams at banks — along with the corporate advisory practices at the big accountants — increasingly view the southwest and Wales as one area. “With the deal size people are looking at, it is more efficient to operate that way,” he says.
Consequently, while there has not historically been a huge amount of interaction between the southwest and the Welsh markets, barriers are clearly beginning to break down.
In April last year, Anglo-Welsh firm Morgan Cole, for a long time one of the Welsh market’s leading players, unveiled plans to open an office in Bristol, establishing a small corporate law team based at the city’s new financial quarter, Temple Quay, with a particular focus on leveraged acquisitions, private equity and initial public offerings.
Rees, one of the team overseeing the
Rather than parachuting in a team from
The firm’s
Rees adds: “Initially, the plan was to keep it as a corporate offering, as it helps people understand what we are about. We would not want to get lost in the noise of the
However, Rees says that if the five-strong corporate practice continues growing it could clear the way for other practice areas to open in
But while firms from outside the city are eager to reap the benefits of a buoyant market,
Such sentiments are echoed by Paul Cooper, a corporate partner at southwest rival heavyweight Osborne Clarke, who says: “
However, the
Berrymans’ senior partner Terry Renouf says the firm, whose offices include
“They may choose to use an individual, team or office or any combination of those, but the important thing for the client is that they know that the range of expertise is available to them.”
One of the reasons the firm might have felt the need to have a physical presence in the city was the type of work driving its business, which focused more on litigious work in personal injury and insurance. “Geography, even in the age of the internet, remains important because witnesses, who may have to appear in local courts, need to be seen and proofed face-to-face,” says Renouf.
“Knowing the local Bar, judiciary and experts all adds value. Knowing your opponents is important and you do so through being in their locality.”
Morgan Cole’s move into
As Alan Meredith, senior partner in Eversheds’
The
Meredith thinks the days when clients simply instructed firms out of loyalty to a historic relationship are over, meaning that firms must face up to the realities of an increasingly competitive commercial market. “If you provide a good service at the right price they will give you work,” he says. “People feel they can get independent advice here, which is why we have sought to provide specialisms. We would not pretend to give advice on capital markets, but we would refer it to another office.”
The buoyancy of the Welsh market is evidenced by Hugh James’ expansion during the last year. In June, the firm announced plans to create 135 jobs at its
Managing partner Matthew Tossell, who was last year appointed to serve a third four-year term at the firm’s helm, notes a pick-up in insurance work — as well as construction and projects — also contributing to the firm’s expansion. “We have seen a huge increase in demand for lender services and claims handling. That will increase further as insurers outsource pre-litigation claims handling work,” he says.
Local rivals have also been enjoying a steady workflow, as well as some notable client wins. Geldards last year landed a prestigious spot on the panel of the
In October, the firm also announced a shake-up of its management structure, appointing corporate finance partner Jeff Pearson to the new post of chief executive, heading up an executive team comprising two other partners as well as the firm’s heads of finance, employment, IT and HR.
Meanwhile, David Williams was appointed to the post of non-executive chairman while the firm’s Cardiff-based head of public law, Huw Williams, took on the role of non-executive vice chairman.
“Modern commercial law firms frequently need to work very closely with clients, helping them in a strategic capacity,” says Williams. “In order to remain among the best, we need to employ and recruit the most talented lawyers from around the country and that means having a management style and focus which can help the firm to constantly move forward.”
Public sector work, which has long been the fuel of the Welsh economy, has also been in good health. The Welsh Assembly is on the verge of completing its first-ever review of its legal advisers, which is expected to culminate in an eight-firm legal panel from February. If
“The Welsh Assembly Government has attracted more work and that is attracting outside firms to look at
Private sector work in
“Historically, the public sector has been strong, but there is growing private sector work. For most law firms, public sector work has underpinned their growth, but most also have good corporate teams.”
The demands of resourcing the local domestic market have not prevented Hugh James from embarking upon ventures into other markets. In September the firm launched a
“We had been looking to open in London for some time and have existing institutional and insurance clients there, so it was partly to do with servicing the existing client base,” says Tossell. “But it was also about having additional commercial capability around IP/IT. There was an opportunity to acquire a specific team at Shaw Pittman, which gave us a hook to open an office in
While the office currently focuses on procurement, outsourcing and technology work, Tossell insists this is only the start. “This is a foothold and our big problem will be trying to contain people. There are a number of areas where we want to push out,” he says, adding that the firm will be examining which other practice areas based at the firm’s Cardiff office might have the potential to establish a presence in the City.
Whether it be
Eversheds’ Meredith thinks
Given the amount of work being generated in the public and private sectors, both
