Legal services come of age

So when global credit conditions roughen, you need the very best type of legal support from World Finance’s 2008 award winners comprising a range of world class legal practitioners, from transfer pricing experts to M&A, tax, employment and FDI advisory teams. Their range of expertise is not just about making sure your business stays on the right side of the law. Their counsel and range of services will also save your business money and time, protecting and upholding the value of your business.

Just look, for example, at the issue of transfer pricing. For many businesses, it is one of the most important issues any global business has to face in the coming decade. Transfer pricing is not an area where sticking to OECD guidelines is sufficient to see you through. It’s about making your argument stand up through rigorous argument, analysis and knowing where the legal argument lies. Especially as the OECD guidelines remain just that - guidelines. There’s no one right or wrong way to argue a case. More important is a proper, consistent transfer pricing policy, and knowing just how it is applied and communicated, and what deviations might lie within it.

Finding clear support and advice on transfer pricing, as some of the companies who have been deservedly included in World Finance’s Legal Awards, is becoming more accessible as expertise grows. It’s an area likely to be increasingly higher profile too while individual countries continues to implement their own policies on the issue – and shareholders and other lobbyists demand answers. As one World Finance transfer pricing consultant put it recently: “We’re seeing a lot more pressure from a variety of special interest groups who are interested in governance and how companies make their money. Just read the front page of The Guardian newspaper.” Expect therefore an increase in expensive and lengthy litigation cases.

Rules are still being fought over
One increasingly challenging issue for business is intellectual property. Protecting yourself in a market where the rules are still being made – and broken – is hugely challenging. How do you best acknowledge your IP potential in a competitive M&A environment, for example? Up-to-date advice has never been so critical, especially in industries where market values are still being defined. “Ten years ago the intellectual property field really was almost a mystical place,” said one World Finance contributor in an article recently. “But many companies are realising the full value of their IP and want, obviously, to protect it,”

But it’s not just about wanting to make a profit; it’s also about shareholder protection – and compliance. Considerable interest is now being shown in green-tech and environmental technology, both heavily dependent on IP protection. Protection takes several shapes, including patent protection and regulatory issues. “There’s also basic practical issues too regarding patent prosecution and filing,” says one legal IP partner. “Should you file just in your own native language? What about filing elsewhere?”

Yet despite the global downturn, deals though are still being done. Targets may become more vulnerable - and therefore more attractive. Canny investors will certainly want to take advantage. But striking the right balance between the right blend of capital and debt can be tricky as banks rein in debt and capital lending criteria. Private equity groups certainly have made huge gains in recent years, but with rising interest rates and worry about leverage, private equity and M&A activity isn’t having it all their own way. Many well run medium-sized European companies are now well aware of their attractiveness as acquisition targets – and they’re also becoming more confident about striking a deal.

Personal relationships count for a lot
But it’s not all about money. One European legal partner made the point recently that a deal too often can hinge hugely on family sensitivities – and any deal is based on good personal relations between all parties. “Often it’s about having a good personal feeling between the parties. So a deal is not always about reaching the highest price. It’s also often about making sure there is a minority stake too, so that family interest is retained.” Retaining management is also critical, not to mention factoring in some legislative unpredictability. Talk of market reform is easy; actually carrying it out is something else. Which is why local, on-the-ground from trusted, established legal partners is so critical, especially as business becomes ever more globalized.

That support certainly carries a lot of weight with foreign direct investment (FDI). Yes, FDI is increasing where reform is clearly reinforced by government. Yet real reform – be it infrastructure, services, education, even the judiciary – can be slow. Yet FDI is about the long term and a progressive investment agenda is one that does need to be supported by heavy weight investment. Greece is a good example. Despite concern about governance and transparency, Greece has made considerable strides to make it more attractive to foreign investors; IT, banking and stock exchange services are now particularly large recipients of Greek FD. One of the most important investment in Greece was the purchase of 31.5% of the share capital of Marfin Financial Group S.A. from Dubai Financial in 2006 – meaning an inflow of €392 million into the Greek economy.

Of course FDI screening criteria is often applied to investors wishing to benefit from tax and investment incentives. A trusted local legal partner will of course supply you with a huge amount of granularity, including the level of cash incentives, wage subsidies and tax allowances you may be eligible for – which can be considerable.

A cultural thing
A good legal partner isn’t though just about the nuts and bolts of a deal; good counsel can be about cultural issues too. “One should never go to a meeting with a large team of consultants, nor should one ever structure the due diligence exercise by sending a long questionnaire or storming the sellers’ offices with a large team of people,” said one legal adviser in a recent interview. “These practices are likely to scare sellers and create barriers that may prove difficult to overcome.”

Sensible cultural advice can carry into many areas, not least issues of employment. Although EU harmonisation has done much to even out employment opportunities and benefits, HR matters can still remain highly country specific. For example, collective bargaining agreements in Italy and Germany can still be a very powerful force, particularly in countries – like the Netherlands and Sweden – that still have a strong social market economy. Careful advice on dismissal and redundancy needs very adroit handling – as does contact with the unions. Contact and negotiation with unions, of course, often has deep roots with local politics.

Italy is a good example of a country where employment issues loom large. Despite some progress, the recent Prodi government has abolished much of Italy’s progressive flexible part-time and fixed-contract employment rules. The hiring of non-Italian nationals also remains limited. Changes to issues like Italian stock options – previously popular and widely used – have meant options have become less attractive due to Prodi-led changes in the tax rules. Despite large-scale privatization and plenty of M&A activity, Italian employment reforms still lag behind much of Europe.

For all these areas outlined, a trusted legal partner is therefore an imperative. You need look no further for authorative counsel than World Finance’s latest 2008 award winners. Our sincere congratulations to them all.

World Finance’s first annual legal awards - 2008
World Finance’s panel of judges – which included the editor Alexander Redcliffe, former BBC journalist Hywel Jones and a host of respected financial people who are at the very top of their profession – recently deliberated to announce the winners of the first annual legal awards.

While deciding the winners the panel looked for a demonstration of successful implementation of strategic goals. This could be shown by the development of new practice areas, expansion into international or domestic markets, new client wins, completing a strategic merger or acquisition, improved financial performance, or instigating a successful recruitment policy.

Other key strengths looked for were, a change in strategy, the development of a new practice area, the introduction of new technology, a successful branding exercise or an attempt to improve the quality of the firm's working environment.

The firms that showed the greatest progress over the past year for advancement were the ones that have been highlighted. Key factors taken into account were evidence of strong management, improved financial performance and increased market share across the firm's major practice areas

And the winners are:

Best Banking and Finance Team in The Netherlands 2008

Allen & Overy

Best Tax Team in Czech Republic 2008

Baker & McKenzie

Best Transfer Pricing Team in United States of America 2008

Ballentine Barbera

Best M&A Team in Brazil 2008

Barbosa, Mussrich & Aragao

Best Banking & Finance Team in Mexico 2008

Basham, Ringe y Correa

Best Capital Market Team in Denmark 2008

Bech – Bruun

Best Intellectual Property Team in Germany 2008

Bird & Bird

Best Real Estate Law Firm in The Netherlands 2008

Boeke de Neree

Best Internationalisation & Foreign Investment Team in Italy 2008

Belluzzo&Associati

Best M&A Team in South Africa 2008

Bowman Gilfillan

Best Banking & Finance Team in Finland 2008

Castren & Snellman

Best Banking and Finance Team in Sweden 2008

Cederquist

Best Capital Market Team in The Netherlands 2008

Clifford Chance

Best Banking and Finance Team in India 2008

Dave & Girish

Best Tax Team in Austria 2008

Deloitte

Best Tax Team in The Netherlands 2008

Deloitte

Best Tax Team in Denmark 2008

Deloitte

Best Transfer Pricing Team in The Netherlands 2008

Deloitte

Beat Transfer Pricing Team in Spain 2008

Deloitte

Best Tax Team in Finland 2008

Deloitte

Best Tax Team in Cyprus 2008

Deloitte

Best Transfer Pricing Team in India 2008

Deloitte

Best Corporate M&A Team in Austria 2008

DLA Piper

Best Tax Team in Brazil 2008

Ernst & Young

Best Tax Team in Argentina 2008

Ernst & Young

Best Tax Team in Mexico 2008

Ernst & Young

Best Transfer Pricing Team in Germany 2008

Ernst & Young AG

Best Tax Team in Sweden 2008

Ernst & Young

Best Tax Firm in India 2008

Ernst & Young

Best Tax Team in Canada 2008

Ernst & Young

Best Tax Team in Poland 2008

Ernst & Young

Best Tax Team in Chile 2008

Ernst & Young

Best Tax Team in Colombia 2008

Ernst & Young

Best M&A Team in Sweden 2008

Gernandt & Danielson Advokatbyra KB

Best Corporate and Commercial Team in Portugal 2008

Goncalves Pereira Castelo Branco

Best M&A Team in Mexico 2008

Goodrich Riquelme

Best Anti-Trust & Competition Team in Italy 2008

Grimaldi e Associati, Head of Practice, Francesco Sciaudone

Best Corporate Law Firm in Greece 2008

KLC Law Firm

Best Real Estate Law Firm in Greece 2008

KLC Law Firm

Best Energy Law Firm in Greece 2008

KLC Law Firm

Best Tax Team in Bulgaria 2008

KPMG

Best Italian Industrial Relations and Labour Law Team 2008

LABLAW - Studio Legale – Failla Rotondi & Zambelli

Best M&A Team in Greece 2008

LAW OFFICE T.J. KOUTALIDIS

Best M&A Team in Switzerland 2008

Lenz & Staehelin

Best Capital Market Team in Switzerland 2008

Lenz & Staehelin

Best Corporate and Commercial Team in Germany 2008

Linklaters

Best Corporate Team in Luxembourg 2008

LOYENS & LOEFF

Best Banking & Finance Team in Greece 2008

M & P Bernitsas

Best Banking and Finance Team in Brazil 2008

Machado, Meyer, Sendacz e Opica

Best International Tax Team in Italy 2008

Maisto e Associati

Best Capital Market Team in Sweden 2008

Mannheimer Swartling

Best M&A Team in The Netherlands 2008

Nauta Dutilh

Best Private Equity Team in Italy 2008

Pavia e Ansaldo

Best Transfer Pricing Team in Italy 2008

Pirola Pennuto Zei e Associati

Best Corporate and Commercial Team in Denmark 2008

Plesner Svane Gronborg

Best Tax Practice in Russia 2008

PricewaterhouseCoopers

Best Tax Practice in Bahrain 2008

PricewaterhouseCoopers

Best Corporate & Commercial Team in Mexico 2008

Ritch Mueller, S.C.

Best Tax Team in Germany 2008

RP RICHTER & PARTNER

Best Debt Capital Markets Team in Italy 2008

Simmons & Simmons

Best Tax Team in Switzerland 2008

Tax Partner AG

Best Employment Law Team in Italy 2008

Toffoletto e Soci

Best Financial Services & Insurance Team in Italy 2008

Tonucci & Partners

Best Corporate Tax Team in Italy 2008

TREMONTI VITALI ROMAGNOLI PICCARDI E ASSOCIATI

Best Banking Team in Switzerland 2008

Walder Wyss & Partner

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