ISSUE 9.09
Global mergers Is the Norton Rose model dead?
Perth boutiques An endangered species?
Retention strategy How to stop brain drain at your firm
Robert Milliner profile: What next for Mallesons? Market-leading analysis Comprehensive deals coverage debt & Equity market intelligence
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Squire Sanders Continued Global Expansion - Perth Exciting opportunities available to join the most recent member of
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With over 1,300 lawyers in 36 offices and 17 countries around the world we are one of the world’s top 20 legal practices. Founded in 1890, Squire Sanders has a strong integrated global platform and with our longstanding ‘one-firm firm’ philosophy, we are uniquely placed to build relationships of trust through communication and delivering value to our people, clients and the community within which we operate. Our culture is underpinned by strong organisational values that drive the way we relate to one another, how we work with clients and how we add value to the community. We are just as interested in who you are and how you work, as we are in the work you do. We are innovative, working together to look at fresh and imaginative ways to approach the challenges and opportunities that face us. Put simply, we have created a genuinely collaborative environment, which makes coming to work an enjoyable experience. To discuss these roles in confidence please contact our exclusively retained consultant Doron Paluch at Burgess Paluch Legal Recruitment on 0438 004 445 or email doron@bplr.com.au
PARTNER Mergers & Acquisitions Squire Sanders represents globally one-third of all Fortune 500 and FTSE 350 companies. We have transactional capabilities throughout our offices to advise clients on a broad range of corporate law matters, including compliance and corporate governance, conduct of meetings, shareholders rights and advising clients on other aspects of the Corporations Act and ASX Listing Rules. We are seeking a Partner level candidate with strong Australian regulated M&A skills who is interested in joining and growing our existing team in Perth.
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PARTNER Project Finance Squire Sanders is a leader in finance internationally. The Australian office of Squire Sanders key focus in the finance area is to act for borrowers in major resource project finance matters in Australia and within the region. We are looking for a Partner level candidate to join the finance team led by the Managing Partner John Poulsen. The candidate should be a motivated self starter with strong technical skills. This role represents a truly unique offering in the Perth market and will appeal to quality lawyers.
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1
ISSUE 9.09
Global mergers Is the Norton Rose model dead?
Perth boutiques An endangered species?
Retention strategy How to stop brain drain at your firm
I
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Robert Milliner profile: What next for Mallesons? Market-leading analysis CoMprehensive deals Coverage debt & equity Market intelligenCe
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IN THE FIRST PERSON “I can’t overstate how clearly evolving the global legal market is and major firms like ourselves are constantly reviewing what that means.” Robert Milliner, Mallesons (22)
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Andrew M. Goldner Managing Director, Asian Legal Business Thomson Reuters
2
Asian Legal Business ISSUE 10.6
SYDNEY MELBOURNE P E RT H
News | deals contents >> >>
contents
ALB issue 9.09 54
38
34
COVER STORY 22 Robert Milliner profile The Mallesons masterplan is still in progress – but the master himself is set to step down at year’s end.
ANALYSIS 12 Global mergers Will we see another Norton Rose-style international merger again? 36 Perth boutiques Boutique firms are disappearing from Perth – what’s driving the trend?
FEATURES 34 ALB Special Report: Perth 2011 Everyone wants a piece of the action in Perth – but can the market absorb all of the newcomers? 42 Retention strategy How to stop “brain drain” at your firm 45 Succession strategy Grooming the next generation of managing partners 48 Intellectual property law The latest trends in IP law and enforcement
4
58 Document management Top ten tips to optimise your firm’s document management strategy
PROFILES 38 In-house profile: Simon Tuxen, Westfield Group Shopping around for the best value legal advice 54 Managing partner series: Gavin Vallely, Holman Fenwick Willan The first UK firm down under
REGULARS 6 Appointments 8 DEALS 14 NEWS
• Drinks on the Bligh as Clayton Utz launches new Sydney office • Firms strike gold on African deals and projects • More clients re-evaluating use of law firms: survey
COLUMNS 13 UK Report 14 U.S. Report 19 In-house Q&A
COMMENTARY 11 New Zealand Buddle Findlay
• M&A lawyers confident despite global jitters • ILH announces 51 percent increase in profit • Slater & Gordon lifts profits on the back of acquisitions
Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as Australasian Legal Business can accept no responsibility for loss.
australasian legal business ISSUE 9.09
er ti se o f Leg a l E xp rs a ye ty en Ove r tw
NEWS >>
appointments
board for the duration of her term, which finishes in May 2012.
►► lateral partner hires Name
Practice areas
Organisation coming from
Organisation going to
Damien Bailey
IT & C
Simmons & Simmons
Freehills
Liza Carver
Competition and consumer protection
Gilbert + Tobin
Blake Dawson
Zein El Hassan
Corporate
Clayton Utz
Norton Rose Australia
John Fairbairn
IP
Clayton Utz
Minter Ellison
Jeremy Hill
Environment and planning
Griffins
Minter Ellison
Tessa Hoser
Corporate
Export Finance and Insurance Corporation
Norton Rose Australia
Paul Humphreys
Corporate
Clayton Utz
Norton Rose Australia
Bill Kritharas
OH&S
Norton Rose
Sparke Helmore
Peter Kay
Banking & finance
Herbert Geer
Minter Ellison
John Moutsopoulos
Corporate
Clayton Utz
Norton Rose Australia
Damian O’Connor
Taxation
HopgoodGanim Lawyers
Gadens Lawyers
Anthony Patten
Energy & Resources
Ashurst
Allens Arthur Robinson
Keith Robinson
IT & C
Minter Ellison
Freehills
Tony Sparks
Corporate
Freehills
Allen & Overy
Freehills
Allen & Overy
Freehills star shoots over to A&O Allen & Overy has attracted the talents of leading corporate lawyer Tony Sparks. Most recently a partner at Freehills, Sparks has considerable experience in high profile corporate and commercial transactions including IPOs and secondary offerings, public and private M&A, hybrid and retail bond issuances, structured products and privatisations.
Minter Ellison
Freehills
Simmons & Simmons
Freehills
CMS Cameron McKenna
Freehills
Freehills boosts technology practice Freehills has recruited three senior IT and communications (IT&C) lawyers on the back of growing demand in the market for their skills. Former co-head of the Minter Ellison technology practice Keith Robinson has been appointed as head of the Freehills practice. Fellow new partner Damien Bailey will join from his current role as head of IT&C with UK firm Simmons & Simmons in Asia in October. Yuban Moodley will also join the firm in October as executive counsel. He joins the team from UK firm CMS Cameron McKenna where he was partner in the
6
technology and sourcing group. Both Robinson and Bailey will be based in Sydney, while Moodley will operate from the Brisbane office.
Ashurst
Clayton Utz
Norton Rose
EFIC
Norton Rose
Norton Rose adds three Clutz partners, in-house counsel Norton Rose Australia has appointed four new lateral partners to its corporate practice, adding to its banking, funds and financial services offering. John Moutsopoulos, Zein El Hassan and Paul Humphreys will Tessa Hoser join Norton Rose Australia from Clayton Utz. The fourth new partner, Tessa Hoser, was most recently general counsel at the Export Finance and Insurance Corporation, a Commonwealth statutory authority; she was also a banking partner at Freehills in Sydney.
Herbert Geer
New finance partner for Minters Melbourne office Minter Ellison has lured Herbert Geer’s Peter Kay to the firm's growing finance practice as a partner in the Melbourne office. His areas of specialisation are acquisition and leveraged finance, construction finance, mezzanine lending and general corporate lending. His career also includes three years in London at US firms White & Case and Weil, Gotshal & Manges.
Allens Arthur Robinson
Allens Perth practice lures international energy partner International oil and gas specialist Anthony Patten will join Allens Arthur Robinson’s growing Perth practice as a partner. Patten began his legal career in the Allens Melbourne office before moving to the UK where he held senior in-house counsel roles for Shell Gas and Power. That role also took him to Dubai, before he joined Ashurst in 2006 where he was made partner in 2008.
Minter Ellison
Griffins
Minters plans ahead with SA/NT partner hire Minter Ellison has hired South Australian environment and planning lawyer, Jeremy Hill, as a partner working out of South Australia and the Northern Territory. Hill was formerly an associate and team leader at Griffins. He had also previously worked at Thomsons Lawyers.
Norton Rose Gilbert + Tobin
Minter Ellison
Blake Dawson
Blake Dawson hires G+T competition partner Blake Dawson has hired former Gilbert + Tobin competition partner Liza Carver as a partner in its national competition and consumer protection (CCP) practice. While a partner at Gilbert + Tobin, Carver advised on restrictive trade practices under the Trade Practices Act. She also became a board member at Airservices Australia on 1 June 2009 and will remain on the
Sparke Helmore
Sparke Helmore adds Norton Rose partner elect
Bill Kritharas
Former Norton Rose Australia lawyer and partner elect Bill Kritharas has joined Sparke Helmore as a partner. Kritharas was one of 15 new partners announced by Norton Rose in April, but departed the firm soon after. In addition
Australasian Legal Business ISSUE 9.09
NEWS >>
to being a councillor at Canterbury City Council, Kritharas brings with him substantial experience advising on occupational health and safety (OHS) issues, with particular experience advising clients in the construction, property and local government sectors. Damian O’Connor
Minter Ellison
Clayton Utz
Minters appoints Clutz IP partner Minter Ellison has lured Clayton Utz IP partner John Fairbairn to the firm on the back of growing client demand in the practice area. Fairbairn's intellectual property practice is focused on the media, technology and life sciences sectors. His expertise in the interaction of copyright law and emerging technologies in Australia is popular with clients in the broadcasting, computing, and telecommunications industries.
HopgoodGanim
Gadens Lawyers
Gadens taxes HopgoodGanim for partner Tax law specialist Damian O’Connor has joined Gadens Lawyers’ Brisbane office as a partner in the corporate advisory team.
Most recently a special counsel at HopgoodGanim, O’Connor has more than 30 years of experience, including 20 with the Australian Taxation Office, and specialises in taxation issues affecting the mining, energy, engineering, financial services, and property sectors.
Piper Alderman
Tindall Gask Bentley
Piper Alderman Adelaide adds two special counsel Piper Alderman has appointed Rod Foster Jones and Donna Benge as special counsel in the Adelaide office. Both Jones and Benge are joining from midtier Adelaide firm, Tindall Gask Bentley, where they were partners.
Taylor Root Melbourne, Williams has spent the past 14 years in legal recruitment, business development and client relationship roles. He has also worked with other national and international legal recruitment firms such as Mahlab and TMP Worldwide.
Moroney Lawyers
Moray & Agnew
Lander & Rogers
Moray & Agnew
Moray & Agnew recruits two insurance specialists National insurance firm Moray & Agnew has strengthened its Sydney practice with the appointment of special counsels Brian Moroney and Robyn Hickie.
Advent
Taylor Root
Advent lures legal recruiter Advent Lawyers has appointed Neil Williams as client services manager and Melbourne office manager. A former associate director – legal & compliance at
Robyn Hickie
put your career in the hands of our trusted senior legal recruitment team
jlegal
At JLegal, we are highly regarded for acting at all times with the utmost professionalism and integrity. We are committed to building relationships and providing a personal, responsive, honest and professional service.
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Brian Moroney
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private practice | australia Jenny Bermheden has more than 12 years experience recruiting lawyers into the Australian and International markets. Jenny carries out a dual role being a senior private practice consultant as well as the manager of the Sydney office. e | jenny.bermheden@jlegal.com
Joseph Germano has an unrivalled reputation as a recruitment consultant in the Australian market as a leading recruiter with close to 15years experience. He leads a team of senior consultants spread across our Melbourne and Sydney offices. e | joseph.germano@jlegal.com
Kellie McLean is a legal professional recruitment specialist with a number of years’ experience nationally & internationally advising candidates and clients on the latest employment trends and up to the minute market knowledge as well as career counselling. e | kellie.mclean@jlegal.com
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Tara Sacks practised as a lawyer in the UK before joining a legal consultancy, recruiting lawyers in London and the Home Counties. Tara’s legal background and tenacious approach enables her to quickly identify the challenges and solutions for her clients. e | tara.sacks@jlegal.com
Dezz Mardigan leads the Partner & Practice Group Acquisition Division. With 15+ years’ dynamic experience, her talents encompass superior relationship management and exceptional career strategy solutions for clients and candidates alike. e | dezz.mardigan@jlegal.com
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7
NEWS | deals >>
deals in brief
By Kalianna Dean
Firm: Clayton Utz Lead Lawyers: John Moutsopoulos, Brendan Groves, Fred Prickett, Andrew Walker, John Loxton Client: Centro Retail Group Firm: Freehills Lead Lawyers: Rebecca MaslenStannage, Peter Stawell, Evelyn Halls, Richard Giannone, Irene Zeitler, Alan Mitchell Client: Centro Properties Group Firm: Johnson Winter & Slattery Lead Lawyers: Shelley Hemmings, John Keeves, Jim Hunwick, David Proudman Client: Direct Property Fund and Centro Australia Wholesale Fund Firm: Maddocks Client: Centro Retail Group Firm: McMahon Clarke Lead Lawyer: Andrew Shearer-Smith Client: Centro property syndicates • D eal involves aggregation of Centro Retail Group and certain Centro unlisted funds, to form a new listed Australian property fund
| M&A | ►► Pepper Homeloans purchase of GE Money mortgage business – A$5bn Firm: Blake Dawson Lead Lawyer: Peter Stirling Client: GE Money Firm: Freehills Lead Lawyer: Mark Crean Client: Pepper Homeloans Firm: Gilbert + Tobin Lead Lawyer: Duncan McGrath Client: CBA Firm: Mallesons Stephen Jaques Lead Lawyers: Berkeley Cox, David Wood, Paul McBride, Anne-Marie Neagle Client: Pepper Homeloans • This transaction, announced in May, has now finalised and the purchase of more than A$5bn worth of mortgages by Pepper Homeloans signals GE Money’s exit from the Australian housing market
8
• M elbourne based Blake Dawson partner Philip Trinca is the firm’s key advisor to relationship client the GE Money group of companies • T his is the first time Freehills has advised Pepper Homeloans
• F reehills also acted for Centro Properties Group on the recent sale of US$9.4 billion US assets sale to Blackstone
| m&a |
| JV | ►► Rio Tinto/Mitsubishi bid for Coal & Allied Industries – A$1.49bn Firm: Allens Arthur Robinson Lead Lawyer: Richard Kriedemann Client: Rio Tinto Firm: Blake Dawson Lead Lawyer: Stephen Menzies, Jason Lambeth, Ian Williams Client: Mitsubishi Development Pty Ltd Firm: Gilbert + Tobin Lead Lawyers: Garry Besson, Gary Lawler Client: Coal & Allied Industries • T his proposal represents an indicative, non-binding proposal under which Rio Tinto and Mitsubishi Development would acquire all of the shares they do not already own under a joint takeover • T he proposal is for A$122 per share, and the approach and standstill deed were confirmed on August 7 • B lake Dawson has advised Mitsubishi Pty Ltd parent company Mitsubishi in 2010 on its bid (as part of a consortium) to acquire the Australian subsidiary of the UK’s largest listed water company, United Utilities, announced May 14 2010
►► Brambles sale of Recall –
| restructure | ►► Centro Properties Group restructure – A$3.1bn Firm: Allens Arthur Robinson Lead Lawyers: Simon Lynch, Craig Henderson, Penny Nikoloudis, Tania Cini, Tony Sheehan, Larry Magid Client: senior lenders, Centro Properties Group Firm: Arnold Bloch Leibler Lead Lawyer: Michael Dodge, Leon Zwier Client: senior lenders, Centro Properties Group Firm: Bracewell & Giuliani Lead Lawyers: Evan Flaschen, Renee Dailey Client: senior lenders, Centro Properties Group
A$2bn (est)
Firm: Mallesons Stephen Jaques Lead Lawyer: Tim Bednall Client: Brambles • B rambles has announced its intention to sell its information management business, Recall, as soon as market turmoil subsides. Analysts estimate the deal will fetch up to A$2bn when completed • M allesons Stephen Jaques is the only Australian law firm formally engaged so far to advise on the deal • B rambles hired Allens Arthur Robinson for its last significant Australian transaction, the purchase of German company IFCO systems from London-based buy-out firm Apax Partners for A$1.2 billion ($923 million)
| M&A | ►► Bain Capital acquisition of MYOB – US$1.3bn Firm: Allens Arthur Robinson Lead Lawyer: Tom Story, Richard Gordon Client: Archer Capital Firm: Clayton Utz Lead Lawyers: Niro Ananda, Philip Kapp Client: Bain Capital (Australian counsel) Firm: Corrs Chambers Westgarth Lead Lawyer: Shawn Wytenburg Client: financiers Firm: Ropes & Gray Lead Lawyer: Brian Schwarzwalder Client: Bain Capital (U.S. counsel) Australasian Legal Business ISSUE 9.09
NEWS | deals >>
• Deal is being touted as the biggest private equity transaction of 2011 in the Australian market
►► Your month at a glance
• Allens Arthur Robinson Partner Tom Story also advised on Archer’s purchase of MYOB in 2009 and the firm worked on its acquisition of Health Care Australia Pty Ltd and acquisition of V8 Supercars
Addisons
• Ropes & Gray has previously advised Bain on its US$1.8 billion buyout of The Gymboree Corporation in 2010 and on the 2006 Bain-led acquisition of Dunkin’ Donuts for US$2.4 billion
| M&A | ►► Asahi Group Holdings acquisition of Flavoured Beverages Group Holdings – A$1.2bn Firm: Clayton Utz Lead Lawyers: Philip Kapp, Niro Ananda Client: Pacific Equity Partners and Unitas Firm: Freehills Lead Lawyer: Robert Nicholson Client: Asahi Group Holdings (Australia)
Firm
Deal name
Value ($Am) Practice
Australia
Bega Cheese IPO
254
Equity
Australia
InvoCare Limited acquisition of the Bledisloe Group
114
M&A
Australia
Centro Properties Group restructure
3,100
Restructure
Australia
Bain Capital acquisition of MYOB
1,250
M&A
Australia/Canada/ Endeavour Mining/Adamus Resources merger Africa
600
M&A/Resources
Australia
Bega Cheese IPO
254
Equity
Australia
ACCIONA development of Gunning Wind Farm
147
Energy & Resources
Australia
BGF Equities sale of stake in Cannacord Financial
40
M&A
Allen & Gledhill
Singapore
SingTel sale of assets into separate business trust
1,890
TMT
Allion Legal
Australia/Canada/ Endeavour Mining/Adamus Resources merger Africa
600
M&A/Resources
Allens Arthur Robinson
Arnold Bloch Leibler Atanaskovic Hartnell
Australia
Centro Properties Group restructure
3,100
Restructure
Australia
Redcape recapitalization plan
278
Equity
Australia
Glencore Investments bid for Minara Resources
Undisclosed
M&A/Mining & Resources
Bright Food Group Operations acquisition of Food Holdings Limited
530
M&A
Australia
Pepper Homeloans purchase of GE Money mortgage business
5,000
M&A
Australia/China
Bright Food Group Operations acquisition of Food Holdings Limited
530
M&A
Australia
Mundaring Water treatment plant PPP
400
PPP
Australia
New Hope bid for Northern Energy Corporation
261
M&A/ Resources
Australia
Centro Properties Group restructure
3,100
Restructure
Baker & McKenzie Australia/China Blake Dawson
Bracewell & Giuliani Clayton Utz
• Deal is the biggest acquisition for Asahi since it acquired Schweppes in 2009 • Clayton Utz has recently closed another food and beverage related deal, acting for Collins Foods in relation to its IPO and listing, valued at A$235m
Jurisdiction
Centro Properties Group restructure
3,100
Restructure
Asahi Group Holdings acquisition of Flavoured Beverages Group Holdings
1,200
M&A
Australia
Bain Capital acquisition of MYOB
1,250
M&A
Australia
K-REIT acquisition of 50% interest in 8 Chifley Square from Mirvac
169
Property
Australia
Tigers Realm Coal IPO
182
Equity
Australia
Glencore Investments bid for Minara Resources
Undisclosed
M&A/Mining & Resources
Australia
Bain Capital acquisition of MYOB
1,250
M&A
Australia
Mundaring Water treatment plant PPP
400
PPP
Australia/China
Yancoal Australia acquisition of Syntech Resources
202
M&A/mining and resources
DLA Piper
Australia
Dept of Health/Accenture Consortium e-health deal
77
TMT
Fraser Milner Casgrain LLP
Australia/Canada/ Endeavour Mining/Adamus Resources merger Africa
600
M&A/Resources
Freehills
Australia
Pepper Homeloans purchase of GE Money mortgage business
5,000
M&A
►► ANZ CPS3 – A$750m
Australia
Centro Properties Group restructure
3,100
Restructure
Australia
1,200
M&A
Firm: Freehills Lead Lawyer: Philippa Stone Client: Underwriters
Asahi Group Holdings acquisition of Flavoured Beverages Group Holdings
Australia
South East Australia Gas refinancing
403
Debt
Australia
CBA acquisition of Count Financial
373
M&A
Australia
Palisade Investment Partners acquisition of Tasmanian Gas Pipeline
200
M&A
Australia
ACCIONA development of Gunning Wind Farm
147
Energy & Resources
Australia
K-REIT acquisition of 50% interest in 8 Chifley Square from Mirvac
169
Property
Australia
Bandanna Energy capital raising
133
Equity
• Freehills has previously advised Asahi Group Holdings, but has not been the lead advisor on any of the other transactions
| equity |
Firm: Mallesons Stephen Jaques Lead Lawyers: Ian Paterson, Jonathan Hamer Client: ANZ
Corrs Chambers Westgarth
Australia Australia
• This deal is the first public offer of Tier 1 Securities by an Australian www.legalbusinessonline.com
9
NEWS | deals >>
Gilbert + Tobin
Australia
Pepper Homeloans purchase of GE Money mortgage business
5,000
M&A
Australia/US
Charter Hall Office REIT sale of US portfolio
1,710
Equity
Australia
Mundaring Water treatment plant PPP
400
PPP
Australia
CVC acquisition of controlling stake in Virgin Active
Undisclosed
M&A
Johnson Winter & Australia Slattery Australia
Centro Properties Group restructure
3,100
Restructure
South East Australia Gas refinancing
403
Debt
Maddocks
Australia
Centro Properties Group restructure
3,100
Restructure
Mallesons Stephen Jaques
Australia
Pepper Homeloans purchase of GE Money mortgage business
5,000
M&A
Australia
Brambles sale of Information Management business Recall
2,000
M&A
Australia
Redcape recapitalization plan
278
Equity
Australia
Palisade Investment Partners acquisition of Tasmanian Gas Pipeline
200
M&A
Australia
Bandanna Energy capital raising
133
Equity
Australia
New Hope bid for Northern Energy Corporation
261
M&A/ Resources
McMahon Clarke Australia
Centro Properties Group restructure
3,100
Restructure
Minter Ellison
Australia
CBA acquisition of Count Financial
373
M&A
McCullough Robertson
Australia
InvoCare Limited acquisition of the Bledisloe Group
114
M&A
Norton Rose (Central Europe)
Australia
Tigers Realm Coal IPO
182
Equity
Piper Alderman
Australia
Dept of Health/Accenture Consortium e-health deal
77
TMT
Ropes & Gray
Australia
Bain Capital acquisition of MYOB
1,250
M&A
Stikeman Elliott
Australia/Canada/ Endeavour Mining/Adamus Resources merger Africa
600
M&A/Resources
Walkers
Australia/Canada/ Endeavour Mining/Adamus Resources merger Africa
600
M&A/Resources
1,890
TMT
Webb Henderson Singapore
SingTel sale of assets into separate business trust
Does your firm’s deal information appear in this table? Please contact
bank since the announcement of Basel III capital reforms • Also first deal to meet the latest regulatory requirements of the Australian Prudential Regulation Authority (APRA) • Mallesons Stephen Jaques also acted for ANZ as issuer of A$1.7 billion convertible preference shares (CPS2) in 2009 • Freehills has extensive experience with underwritten capital raising transactions, having most recently advised CBA and the Royal Bank of Scotland as underwriters on the A$750 million revolving operating lease facility for Leighton Holdings
| M&A | ►► Endeavour Mining/Adamus Resources merger – A$600 million Firm: Allens Arthur Robinson Lead Lawyers: Wendy Rae, Robert Pick,
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alb@thomsonreuters.com
61 2 8587 7484
Client: Endeavour Mining Firm: Allion Legal Lead Lawyers: Philip Lucas, Simon Rear Client: Adamus Resources Firm: Fraser Milner Casgrain Client: Adamus Resources Limited (Canadian counsel) Firm: Stikeman Elliott Client: Endeavour Mining (Canadian counsel) Firm: Walkers Client: Endeavour Mining (Cayman Islands advice) • A llion Legal has acted for Adamus Resources over the years with principal Phil Lucas also advising Adamus on its A$40 million institutional and sophisticated client placement in August 2009 • A llens Arthur Robinson has advised on other recent significant Canadian deals, including the Canada Pension Plan Investment Board’s sale of its
stake in toll operator Transurban in July for A$903 million • S tikeman Elliott is currently advising on sixteen different African mining projects and 23 different mineral projects in Australia, including the Riversdale, Mineral Deposits Limited, Allied Gold, Sphere Minerals and Caledon Resources projects
| M&A | ►► Bright Food Group Operations acquisition of Food Holdings Limited – A$530m
Australian subsidiary of Shanghai Sugar Cigarette and Wine (Group) Co Ltd, owned by Chinese SOE Bright Food • T his acquisition establishes a foothold for Bright Food in the Australian market while CHAMP private equity and the owner of Food Holdings, Roy Manassen, will retain a 25 percent stake in the business • T he announcement follows an unsuccessful attempt to buy Sucrogen, the Australian subsidiary of CSR - Singapore-based Wilmar International successfully outbid Bright Food to get Sucrogen for A$1.75 billion • O ther major food retail clients of Blake Dawson include National Foods Limited, Ocean Spray Cranberries, Inc. and McCain Foods
| debt | ►► South East Australia Gas refinancing – A$403m Firm: Freehills Lead Lawyers: Brendan Quinn, Gerard Pike Client: financiers Firm: Johnson Winter & Slattery Lead Lawyer: Philip Laity Client: South East Australia Gas (SEA Gas), APA Group and REST • S EA Gas has closed its a$403 million refinancing with a club of seven offshore and domestic banks • T he deal was overseen by the two owners of Sea Gas, the APA Group and REST (Retail Employees Superannuation Trust) • J ohnson Winter & Slattery has acted as lawyers for the SEA Gas Partnership since commencement of the project in 2001. The firm’s SEA Gas Relationship Partner is Philip Laity
Firm: Baker & McKenzie Lead Lawyers: Simon De Young, Mark McNamara, Bryan Paisley Client: Food Holdings Limited Firm: Blake Dawson Lead Lawyers: Stephen Menzies, Murray Wheater Client: Bright Food Group Operations, Australasian Legal Business ISSUE 9.09
Firm Profile |
NEWS deals >>
NZ Commentary
SHIFTING SANDS: A NEW APPROACH TO OWNERSHIP OF THE FORESHORE AND SEABED The ownership of the foreshore and seabed has been the subject of significant and controversial litigation and law reform in New Zealand, particularly over the last 8 years. In 2003 New Zealand’s Court of Appeal overturned the Crown’s long-held assumption that it owned the foreshore and seabed. The Court of Appeal opened up the possibility that areas of the foreshore and seabed could be found to be exclusive Māori customary land. In 2004 Parliament responded to the Court of Appeal’s decision by enacting the Foreshore and Seabed Act 2004 which vested the full legal ownership of the foreshore and seabed in the Crown, except for existing privately owned areas. This had the effect of extinguishing any unidentified Māori customary title. This year, Parliament repealed the Foreshore and Seabed Act 2004 and enacted the Marine and Coastal Area (Takutai Moana) Act 2011 (MACA) which: • R emoved the Crown’s ownership of the foreshore and seabed and replaced it with a “no ownership” regime • R estored any Māori interests extinguished by the Foreshore and Seabed Act 2004 • R ecognised Māori interests in three ways, namely participation rights in conservation processes, customary use rights and title interests • P rotected existing rights and interests including public access, navigation, fishing, development (e.g. aquaculture) and mining interests • D eveloped a new system for reclaiming land including the ability to acquire fee simple title. Recognition of Māori interests Customary title in New Zealand, like native title in Australia, recognises indigenous property interests that pre-date Crown sovereignty. In Australia, native title is recognised in the Native Titles Act 1993. What constitutes native title will
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differ from case to case; it may consist of exclusive (i.e. ownership-type) interests, non-exclusive interests (i.e. use rights not connected to land ownership), or a mix. The Australian High Court in Yarmirr (2001) determined that exclusive native title cannot exist in the sea or seabed because this would be inconsistent with public rights of navigation and fishing. In comparison, MACA recognises that Māori may have exclusive interests (“customary marine title”) in the “common” area of the foreshore and seabed. The common area refers to the area of New Zealand’s foreshore and seabed that is not already in private ownership. However, this exclusivity is qualified in that it is subject to public access, navigation and fishing and other specific development interests such as mining. In that sense, customary marine title in New Zealand is very close to what Kirby J described as possible in the Australian sea and seabed in his minority judgment in Yarmirr.
MACA reflects the Government’s aim of striking a balance between customary interests and the broader interests in the foreshore and seabed. The key next steps lie in the determination of where those customary interests are located, through either direct negotiation with the Crown or determination by the High Court. MACA certainly represents a significant milestone in the dialogue between the Crown and Māori about the recognition of long-standing and traditional interests that pre-date the Crown’s presence in New Zealand.
This article was written by Kirsten Price, a Senior Solicitor in the Wellington office of Buddle Findlay, one of New Zealand’s leading law firms. Kirsten specialises in environmental and resource management law. Kirsten can be contacted on +64 4 462 0465 or email kirsten.price@buddlefindlay.com.
Protection of development interests Development and business interests are seen as important interests to protect in the foreshore and seabed area and a number of provisions in MACA aim to provide a balance between “business as usual” for development and the protection and legal recognition of customary interests (the latter of which will also have a development interest). These provisions include: • E xceptions for certain industries to continue to operate in customary marine title areas (e.g. aquaculture and mining)
KIRSTEN PRICE Buddle Findlay
• R equirements for consultation between applicants for customary marine title and applicants for resource consents (who wish to undertake activities in a claimed customary marine title area) • A time limit for filing applications for the determination of customary interests (to encourage a timely determination of all rights in the foreshore and seabed area).
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NEWS | analysis >>
Analysis >>
Welcome to the post Norton Rose model
Why did Minters’ Perth partners decide to leave the fold? ALB’s Renu Prasad reviews the split and the implications for the preferred model of international expansion.
T
he phrase “paradigm shift” has become the cliché of choice for the legal profession of late as international firms continue to circle the Australian market. Perhaps one might call the new paradigm the post Norton Rose model, for ever since the announcement of the DeaconsNorton Rose merger in 2009, a new model of market entry into Australia has developed. This model is continuing to evolve but the basics are the same: the big mergers have been eschewed in favour of selective recruitment in favoured markets and practice areas. This, of course, does not mean that big mergers are out of the question – indeed, even as this edition was going to print, market chatter about a possible Blakes-Ashurst tie up was increasing in volume. However, most recent reports indicate that this is more likely to take the form of an exclusive alliance. Some kind of financial merger at a later date is not out of the question. However, it seems fair to conclude that the smaller Magic Circle-style mode of entry into Australia has been the more favoured model over the past two years. The latest market entrant, Squire Sanders, has followed this tradition but with some important differences.
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Unlike Allen & Overy and Clifford Chance, Squire Sanders intends to have a full service offering. The absence of a Sydney office is also a conspicuous departure from the Magic Circle model. The firm appears to be hedging its bets, emphasising the need for a strong cross-referral relationship with Minters while not ruling out the possibility of opening its own Sydney office in the future. Perhaps the two options are not mutually exclusive. Minters CEP John Weber has stated on the record that the split did not come as a great surprise and that both parties intended to maintain an amicable relationship. Beyond this, however, is a clear difference of strategy between the two groups. Minters was keen for a financially integrated Perth office but many of the Perth partners were not sure whether being part of the Australian behemoth was the right option at a time when nimbleness and responsiveness are key prequisites for success. National integration felt like an issue that belonged back in the 1990s. Partner John Poulsen, who will head up the new Squire Sanders office, was diplomatic when asked about the question of financial integration at Minters. He emphasised that the
firms would continue to have a cordial relationship and that he did not want to engage in commentary about Minters. However, he did concede the integration issue was “relevant” to the course of events. “To put it in context, nearly all the national firms in Perth who were operating under a similar arrangement to us financially integrated nearly ten years ago,” he told ALB. “So that was ten years ago. Since then the world has changed dramatically - particularly the legal world and you’re seeing the emerging internationalisation of law firms. So one of the key issues for us was whether it was the right thing to be the last of the national firms to integrate as the world is changing.”
Inception
Having decided to part company with Minters, Poulsen and his team approached a New York based consultancy to help broker a merger with a suitable international firm. “Quite early in the process, the consultant told us that we were going to have two problems,” recalled Poulsen. “We asked what they were. He said the first problem was that we were going to have a lot of choice and the second problem was that we were Australasian Legal Business ISSUE 9.09
NEWS | analysis >>
going to have to make a decision fairly quickly as to who we chose.” It would be easy to view the Minters Perth partners as simply following the paradigm set by Allen & Overy and Clifford Chance, but at the time negotiations were taking place, this model was not as clearly established as it is now. “We’d been in discussions for 12 to 14 months,” said Poulsen. “As discussion progressed, different things happened - we had the Clifford Chance [merger] and DLA Piper integration happening, so things were moving externally at the same time. It’s a paradigm shift – they are hard to spot when they’re happening and very easy to spot with the benefit of hindsight.” There are two separate trends at play here – first, the merger of large full service firms with international partners (think Norton Rose and DLA Piper) and secondly international firms arriving in Australia via the selective recruitment of partners and boutique practices (Allen & Overy, Clifford Chance). Poulsen says that in his experience international firms appear to be more attracted to the second model. “We obviously met a lot of international firms in our journey to get to [this outcome],” he said. “It seemed to me from all the meetings we had that from the international firms’ perspective, the Australian big national firms were somewhat big morsels to digest.” However, Poulsen also acknowledges that the market rumour mill continues to generate speculation about one of the “big six” being involved in a merger. What particularly struck Poulsen was how well informed international firms were about the Australian market. “All of the international firms are acutely aware of what’s going on in the Australian market and how that can impact particularly on work that comes out of South East Asia,” he said. “They are very well briefed on the Australian legal market.” Poulsen said he would “not be surprised” if another international entry is announced in due course. The post Norton Rose model is not a foregone conclusion. Perhaps the next merger will involve one of the Australian mega-firms being absorbed in its entirety. DLA Piper certainly seems to have confidence that a full scale merger is the right option. But for the moment, the weight of evidence is favouring the post Norton Rose model. ALB
►SQUIRE ► SANDERS IN AUSTRALIA – KEY POINTS • The majority of the Minter Ellison Perth partnership have opted to join Squire Sanders to establish the US firm’s first Australian office • In a separate move, insurance partner Deborah Templeman has defected to Gilchrist Connell to establish that firm’s first WA office • The remaining Minter Ellison partners will continue to operate under the Minter Ellison banner, however their practice will be financially integrated with the rest of the firm • Previously, the Perth office of Minter Ellison had not been financially integrated with its east coast counterparts www.legalbusinessonline.com
uk report Litigation funding working party beginning to take shape Seventeen lawyers have been appointed to a new working party put together by the Civil Justice Council to consider the implementation of Lord Justice Jackson’s civil litigation reforms. The working party will be chaired by Berrymans Lace Mawer’s head of policy development, Alistair Kinley. The working party also includes Hogan Lovells London litigation partner Graham Huntley, McGuireWoods partner Hardeep Nahal, Keoghs partner Don Clarke and Hugh James partner Mark Harvey. The reforms include the abolition of recoverability of success fees and associated costs in ‘no win, no fee’ conditional fee arrangements, so that claimants pay their lawyers’ success fees instead. Pinsents, Wragge & Co freeze salaries for NQ lawyers Pinsent Masons and Wragge & Co, the latest two firms to confirm newly qualified salaries for 2011-12, have both decided to freeze pay for newly qualified associates. Pinsent Masons would not confirm salaries for more senior lawyers as pay is based on merit for those on more than one year PQE, according to the report by Legal Week. Pinsents and Wragge & Co have joined a list of UK firms which have frozen salaries in the face of further economic turmoil in the European economies. Herbert Smith, Ince&Co, Linklaters and Allen & Overy have all also frozen associate pay rates. Freshfields, Slaughters and Gibson & Dunn head up CVC Virgin Active bid Freshfields Bruckhaus Deringer, Slaughter and May and Gibson Dunn & Crutcher have secured leading roles on CVC Capital Partners bid for a controlling stake in Virgin Active. A Freshfields team led by London partners Tim Wilmot and Chris Bown is advising CVC, which values the fitness chain at approximately £900 million. The Virgin Group, which will retain a 49 percent stake following the acquisition, has instructed Slaughter and May. Corporate finance partner Gavin Brown is leading the Slaughter and May team.
ROUNDUP • Blackstone Chambers and Olswang have secured a judicial review hearing on behalf of Tottenham Hotspur against the decision to give West Ham United the use of Olympic Stadium following the 2012 London Olympics. The case is set down for later in the year • Slaughter and May will represent Arsenal FC to conduct the transfer of Samir Nasri to Manchester City. Partner Andrew Jolly confirmed on 16 August. Manchester City was advised in-house by legal counsel Nick Carter • Clifford Chance will line up against a raft of U.S. firms to advise Securitas on the largest European mezzanine loan of 2011. The 393.5 million loan by the Swedish alarm maker will be used to fund its buyout by two private equity firms • Berwin Leighton Paisner equity partners will be working harder for their pay from now on. The firm has increased the proportion of pay dependent on performance from 20 percent to 25 percent following a review of bonus structure. Nabarro recently made a similar change • Ashurst corporate partner Tom Mercer has taken up a two-year secondment at the city Takeovers Panel. Mercer was made partner earlier in the year and will be the panel’s new secretary for twenty-four months, beginning September 12. • DWF and McGrigors have posted 100 percent and 72 percent trainee retention rates respectively. Six DWF lawyers will be based in Manchester, one in London, five in Liverpool and two each in Preston and Leeds.
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NEWS >>
us report Goldman Sachs instructs Steptoe & Johnson over GFC allegations Chief executive Lloyd Blankfein has instructed the firm’s white-collar defense team over allegations that the banking behemoth misled clients prior to the GFC. The main allegations relate to the way Goldman Sachs engaged in selling sub-prime mortgages and misled Congress by denying to a Senate permanent subcommittee that it had benefited deliberately from the housing market downturn by betting that mortgage values would drop and continuing to sell mortgages to other banks. Goldman Sachs has instructed Washington Steptoe & Johnson partner Reid Weingarten following the allegations and the official statement issued implied the firm had been engaged months ago. Cleary finally reaches Sao Paolo Cleary Gottlieb Steen & Hamilton has announced the official opening of its Sao Paolo office after Brazilian authorities approved the move. The firm announced its intention to open the office in November 2010, following its first South American branch opening in Buenos Aires in 2009. Partners Juan Giraldez and Francisco Cestero will head up the new office after relocating from New York and Rome respectively. The firm now has a total of 100 lawyers in South America and is best known for its capital markets and corporate work throughout the region. Rival firm Davis Polk & Wardwell is rumoured to be the next to open in the area. DLA Piper loses four to Reed Smith on both sides of the US DLA Piper has seen four of its partners leave for Reed Smith, led by M&A lawyer Yvan-Claude Pierre, who only joined DLA Piper three years ago. Pierre joined Reed Smith’s New York office along with corporate partners William Haddad and Daniel Goldberg. The last partner, Garth Osterman, has joined the San Francisco office. Osterman had previously made partner at Reed Smith before joining DLA Piper in 2007.
ROUNDUP
M&A >>
M&A lawyers G
lobal markets have remained volatile for traders and investors these past few months, as growing debt and sluggish economic growth continues to plague Europe and the US. However, despite the instability M&A activity in the Asia Pacific region has remained steady, and in some cases is thriving. In recent weeks major deals including the SABMiller bid for Foster’s and bids for Macarthur Coal have seen the value of M&A in Australia surge to more than A$130billion in the year to date. “There has been volatility – but volatility in one form or another has been around for years,” said Freehills M&A partner Tony Damian. “Through all of that we have not really seen a decrease in interest in Australian targets or the propensity to do deals.” Allen & Overy M&A partner Arron Kenavan agrees with Damian, adding that he expects to see a reasonably solid M&A market in Australia in the months to come. “Sensible deals will still get done,” said Kenavan. “Deals that are marginal or where the acquirer is not well capitalised, and needs to raise equity to get the deal done, might be a bit tougher but I think we will continue to see the strategic deals.”
Tony Damian partner, Freehills
• Jenner & Block and Duane Morris have each been claiming victory in the EMI/MP3tunes case following a summary judgment issued in Manhattan. Summary judgment was issued for EMI over 472 songs where it claimed copyright was infringed. However, it was also decided that the Digital Millennium Copyright Act’s safe harbor provisions absolved MP3tunes of liability other than for those 472 songs • According to legal blog ‘On the Case’ there are now five separate actions in California and New York against Apple and US publishers alleging a ‘horizontal conspiracy’ to fix and increase the price of e-books in the U.S. • K&L Gates is reportedly suing former Hong Kong partner Navin Kumar Aggarwal, who was arrested on charges of theft and forgery over the transfer of funds to a casino company in Macau. Aggarwal is accused of stealing $2 million from RIM China and moving the funds to Wynn International Marketing last year • Nigerian scam suspect Emmanuel Ekhator has been arrested in connection with an attempt to defraud more than $100 million from 300 lawyers and law firms, according to the Pennsylvania court indictment. Ekhator successfully scammed $32 million out of 80 as yet unnamed lawyers and firms • Linklaters’ U.S. structured finance head Gary Barnett has left the firm to join the U.S. Commodity Futures Trading Commission. Barnett took up the position in the last week of August. He will head the Division of Swap Dealer and Intermediary Oversight, a new subdivision responsible for regulating complex securities
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Australasian Legal Business ISSUE 9.09
NEWS >>
confident despite global jitters ►M&A ► – key facts • Australian-involvement M&A reached a record high of US$130.3 billion so far this year, up 78.1 percent from the same period last year and the busiest year-to-date volume. • Metals & Mining remains the busiest sector with US$27.8 billion up 31.5 percent from the same period last year. • New Zealand inbound M&A this year reached US$2.1 billion, a 62.6 percent increase from the comparable period in 2010 All figures from Thomson-Reuters, August 2011 Australian corporates such as Qantas subsidiary Jetstar and the Westfield Group have also been taking advantage of the strong Australian dollar and economy by making investments overseas. The strength of the Australian economy and dollar are positives for both inbound and outbound M&A, says Damian. “I think the currency speaks for the fact that Australia is a terrific place to invest, and is doing well and continues to do well,” he said. The continued search for growth is also a factor contributing to the offshore M&A, added Damian. “There are still industries where there is room for domestic growth, but in some industries, especially with Asia on the doorstep it’s a natural decision to look overseas and I think we will continue to see more of that,” he said. Two of the biggest sectors for M&A in recent years have been resources and agriculture and as long as there are companies and investors in those sectors looking to take long term strategic decisions Kenavan doesn’t see M&A work slowing. “I don’t think the volatility will impact the acquirers of in those industries very much,” he said. ALB www.legalbusinessonline.com
►► Top legal advisors: Australian Target or Acquiror Year-To-Date (announced deals) Rank
Legal Advisor
Ranking Value inc. Net Debt of Target (US$Mil)
Mkt. Share
Number of Deals
1
Allens Arthur Robinson
35,019.78
30.0
30
2
Clayton Utz
26,758.58
22.9
34
3
Allen & Overy
24,941.72
21.4
19
4
Sullivan & Cromwell
23,566.26
20.2
4
5
Freehills
23,547.63
20.2
52
6
Morgan Lewis & Bockius
20,329.43
17.4
3
7
Simpson Thacher & Bartlett
16,246.72
13.9
3
8
Latham & Watkins
15,556.53
13.3
1
9
Mallesons Stephen Jaques
14,951.78
12.8
36
10
Hogan Lovells
12,941.85
11.1
3
11
Cleary Gottlieb Steen & Hamilton
12,539.92
10.7
1
12
Blake Dawson
11,555.29
9.9
39
13
Cravath, Swaine & Moore
9,965.39
8.5
2
14
Corrs Chambers Westgarth
7,667.57
6.6
12
15
Osler Hoskin & Harcourt LLP
7,480.39
6.4
2
16
Ogilvy Renault
7,459.73
6.4
1
17
Minter Ellison
6,858.76
5.9
31
18
Baker & McKenzie
5,729.32
4.9
24
19
Johnson Winter & Slattery
5,659.93
4.8
6
20
Gilbert + Tobin
5,325.60
4.6
11
21
Wachtell Lipton Rosen & Katz
4,750.00
4.1
1
22
Skadden
3,466.53
3.0
4
23
Herbert Smith/Gleiss Lutz/Stibbe
1,923.26
1.6
2
24
Vinson & Elkins LLP
1,765.00
1.5
1
25
Edward Nathan Sonnenbergs Inc
783.41
0.7
3
Subtotal with Legal Advisor
102,659.69
87.9
271
Subtotal without Legal Advisor
14,112.16
12.1
816
Industry Total
116,771.85
100.0
1,087
Source: Thomson Financial Date: August 30, 2011
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NEWS >>
news in brief >>
LISTED FIRMS >>
Squires raids Minter Ellison for new Perth office Another global firm is set to arrive in Australia following a decision by the majority of partners at Minter Ellison Perth to join Squire Sanders & Dempsey. The new Squire Sanders office will include 14 Minter Ellison Perth partners. See page 12 for more commentary on this story
ILH announces 51pct increase in profit
New Zealand employment law firm joins global alliance New Zealand employment law firm Swarbrick Beck Mackinnon (SBM) has joined forces with L&E Global, an international alliance which advises employers on employment, labour, workplace privacy, employee benefits and immigration law. L&E Global formed in 2010 and already has seven other member law firms from Europe and the United States. Allens joins Mongolian Business Council Allens Arthur Robinson has become the first Australian firm to be made a member of the Business Council of Mongolia. Other members include Baker & McKenzie, Ernst & Young and Lynch & Mahoney. Partners Erin Feros and David Wenger, as well as senior associate John Koshy and lawyer Emma Wanchap, attended a meeting of the council that formally accepted Allens as a member.
Trilby Misso opens ninth office Slater & Gordon owned Trilby Misso has opened another office, this time on the Sunshine Coast at Minyama. The Queensland-based personal injury law firm has been through a period of rapid expansion in the past two years, adding offices in North Lakes, Morayfield, Toowoomba, Ipswich, Loganholme, Browns Plains and Robina (on the Gold Coast) to the head office in Brisbane’s CBD. “Trilby Misso has been looking to expand into the Sunshine Coast for some time and we are excited about having a presence there and being able to assist the local community,” said Trilby Misso general manager Lisa Rennie. Trilby Misso was acquired by Slater & Gordon in August last year for A$57 million. The firm’s full financial year revenues were $32.2 million, representing a A$4.2 million surplus above projections.
A
flows from operations were A$1.23 million during the period, compared with A$1.45 million for the period ended 30 June 2010. With the two acquisitions having occurred in February and August of this year, their full impact on revenues will not be seen until FY2012. “The directors believe that the effect of both acquisition transactions will be materially positive in terms of earnings per share in the 2011/12 financial year and will enhance the company’s growth prospects,” the firm said in a statement. The directors added in the statement that there were approximately 150 medium sized firms in Australia within the company’s target group, indicating that the firm would continue to acquire firms in the coming year. “For medium sized legal firms, it is difficult to attract ►INTEGRATED ► LEGAL HOLDINGS LIMITED and retain good senior lawyers price history chart to August 2011 and it is hard to provide broad services to meet client needs,” the directors said. IHL also believes growth is difficult for these businesses, due to a lack of available capital. The company believes that the recent spate of international entrants into the Australian market will provide an opportunity for ILH to expand through acquisitions and lateral hirings. ALB
SX-listed Integrated Legal Holdings (ILH) has announced a 51 percent increase in net profit and a 19 percent increase in earnings per share growth. Consolidated operating revenues were 19 percent higher than the previous year, reaching A$28.5 million. Revenue from ordinary activities increased due to a combination of organic growth and two acquisitions. These acquisitions were Wojtowicz Kelly Legal (A$5.3 million annual revenue) and PLN Lawyers (A$2 million annual revenue). The acquisition of PLN Lawyers occurred under a tuck-in arrangement with existing member firm Argyle Lawyers. The transaction was funded through surplus cash reserves. Cash
►Integrated ► Legal Holdings – Full Year Results
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Australasian Legal Business ISSUE 9.09
NEWS >>
Slater & Gordon lifts profits on the back of acquisitions A
SX-listed law firm Slater & Gordon has announced a net profit after tax of A$27.9 million, representing a 40.9 percent increase on its previous results. Revenue has increased 46.2 percent to A$182.3 million. During the past year the firm acquired two firms, Trilby Misso Lawyers Limited and Keddies and it also purchased part of Rob Powe Lawyers. The Trilby Misso and Keddies practices both achieved their financial year revenue projections of A$28 million and A$11 million respectively; for Trilby Misso the final revenue figure was A$4.2 million above expectations. “The fact that we were able to achieve our target revenues for both practices is a strong indicator of the progress we have made,” said Slater & Gordon managing director Andrew Grech. “We’re also seeing the benefits to the organisation of bringing in a substantial number of experienced
also on the agenda for Slater & Gordon, practitioners and professional staff which has identified the UK market the through the acquisitions.” most likely destination because of its The Slater & Gordon Group will continue to expand its national network jurisdictional similarities to Australia and the upcoming introduction of of offices this year, according to Grech, legislation allowing listed law firms to with new Slater & Gordon offices operate there. ALB opening in Werribee and Warrnambool (Victoria) and a new Trilby Misso office opening in ►SLATER ► & GORDON LIMITED price history Toowoomba (South chart – to August 2011 Queensland). The group is expecting to hit revenues of more than A$200 million in the next financial year: “We are well advanced in our plans to maximise the growth opportunities we’ve identified in other areas of consumer legal services,” added Grech. Areas being targeted include family law and private client services. Expansion overseas is
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NEWS >>
Industry >>
Drinks on the Bligh as Clayton Utz launches new Sydney office The new Sydney Clayton Utz office at 1 Bligh St is setting new standards in green design – but who’s watering the building’s 11,000 plants?
O
ne of the more remarkable features of the new Clayton Utz premises in Sydney’s Bligh St is immediately apparent to the visitor entering from street level. This circular tower has a hollow core running the full height of the building – apparently the tallest naturally ventilated atrium in Australia. One can only wonder how the property developers managed to ensure the project’s viability even with the loss of floor space in the centre of the building. Moving along to the reception area on Level 15, another striking feature is evident: a large outdoor entertaining space with harbour views. While such views are not uncommon for Sydney corporate firms, very few law firms would have the capacity to entertain clients in an outdoor area on such a scale as is possible at 1 Bligh St. Clutz recently hosted nearly 500 people in this space and adjoining reception area for its official office launch on 27 July. While the length of some of the speeches from visiting dignitaries had some guests eyeing the bar, there was no doubt that the crowd was genuinely impressed with the facilities.
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Australasian Legal Business ISSUE 9.09
NEWS >>
>> The main theme of this building is sustainability: the building has achieved a 6 Star Green Star rating – the highest Green Star rating of any commercial high-rise building in Sydney. Every aspect of the tower from the double-skin glass façade to the full-height atrium is designed to optimise sustainability performance and the workplace environment. Other features of the tower include a glazed and naturally ventilated wintergarden space at ground floor level and Australia’s largest green wall (vertical garden), featuring 11,000 plants. No doubt the summer clerks will be kept busy with the watering can. The building also has a tri-generation electricity generation system using grid, gas and solar power and an advanced water recycling system. Clayton Utz occupies 55 percent or 15 floors of this A$666 million 28 storey tower which was designed by Ingenhoven Architekten of Germany and Architectus of Australia. Clayton Utz chief executive partner Darryl McDonough said the design of the new office and the environmentally sustainable features of 1 Bligh reflect the firm’s commitment to being a leader in social responsibility. “It provides an excellent working environment for our partners and staff and will help us reduce our overall carbon footprint,” he said. ALB
“It provides an excellent working environment for our partners and staff and will help us reduce our overall carbon footprint” Darryl McDonough, chief executive partner, Clayton Utz
In-house Q&A
John Pease General Counsel
Western Power
1
In your opinion, why have in-house lawyers become an increasingly indispensable part of an organisation?
In the past, in-house counsel were often seen as a means of reducing or at least containing external legal costs, both through oversight of how external counsel were engaged and managed and also simply by virtue of the fact that the fully loaded hourly rate of an in-house counsel is significantly lower than that of our external peers. More recently, however, the increasingly complex legislative landscape, as well as the capacity and propensity for skilled in-house counsel to take a ‘whole of organisation’ perspective to problem-solving and our value as strategic thinkers have cemented a role for in-house counsel in a vast range of organisations. In-house counsel can also add an enormous value to their employers by providing training and facilitating and/or leading post-implementation reviews of significant transactions and disputes.
2
In recent times, the role of the General Counsel has diversified into a multi-faceted role, (where the General Counsel can wear the ‘hat’ of Lawyer, Legal Manager, Compliance Manager, and Company Secretary). In your opinion, do you believe this has increased your risk profile? Whilst the role has expanded, I do not consider that the risk profile has significantly increased. Adding functions such as compliance, risk management and company secretary are very consistent with the General Counsel role in the sense of requiring an enterprise-wide mind-set, as well as a focus on compliance and ethical conduct (in a general sense). I could imagine that the position is different for someone combining a General Counsel role with a commercial or business development role. The biggest risk for General Counsel arising from combined roles, relates to eroding or compromising client-lawyer privilege. This ever present danger requires General Counsel to be vigilant about the capacity in which he or she is providing advice.
3
In your opinion, what do you consider to be the main challenges you and your team will face in 201?
I suspect our challenges are the same as those faced by most, if not all, other in-house teams, namely meeting demand for legal advice on significant transactions or issues with limited time and resources. Whilst we have not, as yet, been asked to do the same (or more) with less, we certainly need to continue to find ways to meet demand with existing resources. This requires a collaborative approach with our internal clients in terms of using the legal team effectively, as well have how external legal resources are retained. It also requires strong relationships with our external legal service providers so that they support us in responding to requests for legal assistance in both a time and cost-effective manner.
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NEWS >>
ANALYSIS >>
Firms strike gold on African deals and projects The African mining bonanza shows no sign of slowing down with more and more companies pursuing projects in the region. Olivia Collings reports
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orton Rose teams in London, South Africa and Perth have recently worked on a variety of deals involving African-based mining projects including the US$205m fundraising deal for Discovery Copper, which will use the funds for the development of a copper and silver project in Botswana. The transaction represents the latest in a stream of debt financings of mining projects in the emerging market. “I have seen a lot of growth in the African work we are doing,” says lead Perth partner on the deal, Douglas Hall. Norton Rose merged with local South African firm Deneys Reitz on June 1 this year and already Hall has personally worked on three deals with the South Africa team. A number of deals he has acted on involved Australian companies with African projects which require financing. “There is an expansion in the number of companies in Africa and they need to get money from somewhere,” says Hall. “There seems to be a good demand for debt at the moment, but it has been healthy for equity as well.”
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Middletons partner Eric Fethers a his firm has also seen more work related to Africa. “A lot of mining exploration companies, with head offices in West Australia, are very entrepreneurial in regions that are underexplored or where investment risks are lowering,” he says. “We have a number of clients who either have assets in Australia (miners and non-miners) or assets in Africa. There are lots of different jurisdictions in Africa, some are very underexplored and others that are getting more attractive to investors.” Fethers adds that he and his team are currently working on a deal involving an Australian ASX-listed company purchasing three exploration projects in Africa. According to Hall there are approximately 160 ASX-listed companies with projects in Africa and of those 105 are based in Western Australia. Despite the high numbers, Hall said this hasn’t stopped new players entering the market and new projects being announced.
New areas of work One of the real challenges for companies launching or expanding projects in Africa is infrastructure according to London-based Norton Rose partner Jake Howard. “We really see infrastructure as the next big boom in Africa,” he says. An increasing amount of investment in the mining sector means more infrastructure is required to make the projects viable. “Hard infrastructure is critical in getting product to market. We are working a lot closer now with our infrastructure law colleagues now,” adds Hall. For example, Sundance Resources which owns the Mbalam iron ore project is set to build a 500km railway project and port to service the mine at a cost of $7.7 billion. In the past year Hall has also seen an increasing amount of M&A involving companies that have mining operations in Africa. “There are a lot of gold projects running adjacent to each other in Africa; owners are now looking at acquiring neighbours so
Australasian Legal Business ISSUE 9.09
NEWS >>
that the economies of scale are able to kick in,” he said. “I think there will be an increasing amount of mergers, consolidations and takeovers in African mining projects and we will be looking to capitalise on that.” A recent case in point of is the friendly takeover of Australian miner Adamus Resources by Canada’s Endeavour Mining Corp, thus creating a West Africa-focused company
producing a quarter million ounces of gold annually by 2013. Fethers agrees, adding that while there has been a lot of M&A activity in Africa generally, there is an increasing amount involving Chinese buyers. “China is looking for resource rich countries to invest in, so certainly, we expect more M&A activity involving China in Africa,” he says. A lot of the acquisition interest
is coming from both independent and government-owned companies seeking to secure resources to fuel the country’s development, says Hall: “It’s a growing market and the continued need for resources isn’t going to drop; and if the gold and copper prices continue to increase it makes mining those resources more viable, so we would expect more companies to get involved there.” ALB
industry >>
More clients re-evaluating use of law firms: survey
C
lients have been busy re-evaluating their use of law firms in the past 12 months according to a recent study by Mahlab. One third of in-house counsel surveyed said that they changed external legal providers in 2010–2011 while 29 percent of respondents said that their company had negotiated new terms with existing external legal providers.
Law firms are facing a double whammy: in addition to being pressed for better rates, they are also receiving less work, according to the report: more than 50 percent of survey respondents said that the volume of work briefed to external legal providers has decreased in the past year. Off-shore providers are one factor
affecting the amount of work going to local firms. 25 percent of respondents reported that their companies are now sending legal work to offshore providers. This number is set to increase, with almost one third of those surveyed advising that they intend to outsource legal work to offshore providers in the next 12-18 months. ALB
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ALB Awards | Winner profile >>
Mallesons Masterplan Outgoing Mallesons CEP Robert Milliner has never made a secret of the firm’s global ambitions – but will we see a definite announcement by the end of the year? Renu Prasad reports.
J
ust as Tony D’Aloisio spent the 1990s transforming Mallesons from a series of state-based partnerships to a unified national firm, Robert Milliner has spent much of the 2000s positioning the firm for a unified global presence. Exactly what form that presence will take remains to be seen. Like his counterparts at all of the top firms, Milliner has had to deal with a global market in a state of unprecedented change. Assumptions about the legal market which held true in 2004, 2008 and even 2010 are now looking somewhat shaky. “I can’t overstate how clearly evolving the global legal market is and major firms like ourselves are constantly reviewing what that means,” Milliner comments. The firm is still canvassing its options, with the result that the Mallesons transformation is likely to still be a work in progress when Milliner vacates the CEP role at the end of the year. Some kind of consummation of the work over the past eight years would have made a nice conclusion to his reign, although one suspects that this is hardly a relevant factor for Milliner. Indeed, when asked about his personal legacy to the firm, his answer is typically understated. “I think of the great Peter Drucker quote:
22
management is doing things right; leadership is doing the right things,” he says. “My experience over the last eight years is about doing the right things - whether it’s putting leadership programmes in place or client feedback programmes, international strategy and those sorts of things.”
Global merger
It is common knowledge that Mallesons is anxious to establish itself as a top tier global player. The traditional assumption was that the firm would seek to achieve this via a merger with a Magic Circle or U.S. firm. However, Milliner says that this assumption needs to be challenged, particularly in light of the troubled state of the European and U.S. economies. “You don’t necessarily have to go to a UK or a U.S. firm to create the basis of a future relevant global firm,” he says. “Our thinking is that the world is changing quite rapidly and it may be that a global firm [could be] driven out of Asia and not necessarily out of the UK and the United States That doesn’t mean there won’t be components of it in the UK and the United States, but it might mean that where it starts is Asia.”
This is a shift in the firm’s position. “There was a certain degree of thinking in the prior years that the classic merger with a Magic Circle firm was the answer to all questions,” says Milliner. “I think we’ve got a slightly broader view of the world now. Over the last 18 months there have been changes in the context. The possibility of driving something out of Asia and us having a big role in that is certainly appealing to the broader partnership.” While the shift of economic power to Asia is a well established trend, Milliner’s comments may still come as a surprise for some: nearly all of the new entrants to the Australian market have been from UK or U.S. firms and it would have been easy to assume that Mallesons would look to these markets for a suitable partner. That assumption may now be outdated. “We think Asia will play a significant role in the global economic future and we think that law firms are relatively shaped around the old world: UK, Europe and the United States,” says Milliner. “We think there’s going to be a reshaping and this is already happening around the Asia market.” Australasian Legal Business ISSUE 9.09
Photography by Thilo Pulch
ALB Awards | winner profile >>
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ALB Awards | Winner profile >>
“We’re looking at getting to a point by the end of this year where we have clarified where our options are and started making some choices.””
Indonesia and India,” says Milliner. “Singapore is well established as a service hub so it would be pretty easy to see that all roads lead there.” However, he preferred not to comment further on the specific elements of this plan. “I think the regulatory regimes [governing firms] will be a driver, and there are other factors as to how you create the mission that we have,” he says.
Revenues
Going it alone
It appears that Mallesons has revised its international strategy in two important respects: first, there is a redirection of the firm’s attentions away from the “old world” to Asia and secondly there seems to be a greater acceptance of the fact that the firm may have to build its future in gradual steps, rather than through a grand merger. “It might be that it’s a series of steps and not just a big bang in one go,” says Milliner. “We’re not just talking about incremental organic growth through existing models – it could be a combination of things and not necessarily one [method] or another.” It may be the case that Mallesons itself initiates a regional network rather than seeking to join an existing entity. Whatever the case, Milliner says that the firm’s key objective has not changed. “What we are looking to 24
in the longer term is to be part of an international network or a global firm.” he said. “The ultimate end is the same - the way we get there may be slightly different. We’re looking at getting to a point by the end of this year where we have clarified where our options are and started making some choices.”
South East Asia
Mallesons is known for its strengths in North Asia but has not opened any South East Asia offices to date. “We believe that if you open an office, it needs to be a serious office - we generally believe you need broad base capability across a number of market segments in order to be able to service clients,” explains Milliner. Mallesons is hoping to open a South East Asia office by the end of next year, with Singapore the most likely location. “There is an obvious interconnection between Singapore, Malaysia,
Mallesons suffered a decline in revenue for FY2011 which was very modest but still notable by way of contrast to comparable “big six” firms which generally had growth. Milliner attributes the result to a number of factors such as different exposure to market segments, client conflicts and general market volatility. “However, I would not want to [imply] that those firms [who have grown] have not done so through great servicing of their clients,” he added. Milliner also adds that the arrival of Magic Circle firms has also had some impact and he does not necessarily accept the view that these firms are simply a redistribution of existing lawyers to a new brand. “That is partly true, but the fact is that it’s another player in the market - so for example with A&O, Clayton Utz replaced those people so they are still there competing in that space – so you have an additional competitor,” he observed. Robert Milliner is the winner of the 2011 Cicero-ALB Managing Partner of the Year Award. ALB Australasian Legal Business ISSUE 9.09
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Q A FEATURE | Q&A >>
&
This month’s question: According to the 2011 Mahlab Survey more than 50 percent of survey respondents said that the volume of work briefed to external legal providers has decreased in the past year. Have you decreased the volume of work you allocate to external legal providers compared to last year?
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Rod Bordignon group legal manager corporate & commercial Woolworths Given the challenging retail environment faced by our business since the global financial crisis, our external legal spend has remained fairly constant despite increasing workload over the past few years. Our growing internal team has performed extremely well in taking on more work of increasing complexity and have shown a depth of expertise and professionalism which is winning them enormous support across the business. The in-house legal team is heavily involved in major transactional and property work as we support the acquisition and integration of new businesses and products, and the rollout of our new home improvement division, including ‘Masters’ which is our new chain of home improvement destination stores. Our business has also become much more involved in property development across our existing portfolio due to the funding environment making it more difficult for property developers to finance external projects, resulting in increased work for our property lawyers. The greater involvement of the in-house team in transactional and property work has meant that our external spending in those areas is increasingly targeted and directed to advice and legal support that returns a high value. The focus on costs has also led us to look for greater value from our spending by putting in place arrangements such as fixed and capped fees in areas which are conducive to those fee structures, as well as more clearly defining scopes of work and underlying assumptions. A focus on charge-out rates and ensuring that work is performed at the appropriate level has also contributed to our spending staying within tighter budgets. Bordignon is responsible for a team of 11 commercial lawyers across countries within the larger Woolworths legal team of over 25 lawyers. He practises in corporate and commercial law, with expertise in corporate transactions, joint ventures and capital markets, having worked with global law firms in Sydney and London. He has been with Woolworths for five years and over that time has seen the legal team expand in expertise and engagement, while also growing in size.
Australasian Legal Business ISSUE 9.09
FEATURE | Q&A >>
Louise Sexton
Mathew Kaley
group general counsel and company secretary, Vodafone Hutchison Australia.
general counsel Allianz Australia
Overall the volume of work that Vodafone Hutchison Australia allocates to external legal providers is much the same this year as last year. However, the types of work where we have sought external support have changed. Following the merger that created VHA in 2009, we had a high volume of work relating to the integration of the two businesses. This year, we have been more focussed on implementation of these arrangements and have also used external legal advisers for the large amount of work relating to rationalisation of our retail outlets and the expansion of our network. Business as usual in the highly regulated telecommunications industry always involves using external advisers on regulatory matters, as well as the ongoing work involved in our product development, marketing, multi faceted distribution channels and new business opportunities such as those presented by the NBN. Sexton joined Hutchison in 1998 general counsel and company secretary. Prior to joining the telecommunications giant she worked at Clayton Utz and the Federal Attorney Generals Department.
The percentage of corporate legal work done by Allianz Australia’s internal legal department has remained steady in 2011 at about 70 percent. The percentage will vary from year to year depending, for instance, on the need for external legal assistance on M&A work, litigation and other large matters. Subject to that, however, an apportionment at about this level is, in my opinion, optimal. It is likely that the internal legal team will grow more in the next few years given the continued strong growth at Allianz Australia and, consequently, the continuing increase in demand for legal support. Kaley began his legal career with Clayton Utz across a broad general practice area before settling in insurance. During that time he went on a one year secondment at Clifford Chance in London. He returned to Clayton Utz when approached by Allianz Australia to become its general counsel. He has held the role for more than 10 years. The Allianz Australia in-house team was named Insurance In-house Team of the Year at the 2008 ALB Awards.
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ALB special report | Perth 2011 >>
Perth 2011:
The onslaught continues Perth market – key developments
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December 2008
July 2009
February 2010
June 2010
• Middletons, Franklyn Legal, Salter Power merger
• Pullinger Readhead Lucas; Michael Whyte & Co merger to form Allion Legal
• Allen & Overy opens office • Corrs poaches three Middletons partners
• Gilbert + Tobin, Blakiston & Crabb alliance
Australasian Legal Business ISSUE 9.09
Photographed by Gary Tamin
ALB special report | Perth 2011 >>
E
The Perth legal market has experienced unprecedented change in the past 18 months – and as Renu Prasad discovers, Perth lawyers are finding it increasingly difficult to ignore the chill winds of the global economy.
arlier this year when Clifford Chance entered the Perth market, one legal publication helpfully opined that the firm was likely to have been attracted by the mining boom. Subtlety was never a strong point with journalists. But in another way, that generalisation sums up the difficulty in characterising the Perth market. Lawyers know that there is some kind of boom going on and naturally they want to be part of it. Doing something in Perth – opening an office, pursuing a merger – clearly makes sense. The problem is that the idea has occurred to everyone at the same time. Allen & Overy and Clifford Chance are the most high profile new entrants in Perth, but there have been other important new players such as Gilbert + Tobin and Holman Fenwick Willan and Middletons. Insurance firms Moray & Agnew and Gilchrist Connell have also made the move to Perth this year while Maurice Blackburn and Turner Freeman are both newcomers in the plaintiff space. Local commercial firms are also shoring up their ranks, with Jackson McDonald absorbing boutique practice McKenzie Moncrieff earlier this month. The most recent development has been a split in the Minter Ellison
Perth partnership. The majority of the partnership will be joining Squire Sanders to establish the US firm’s first Australian office while, in a separate move, insurance partner Deborah Templeman has defected to Gilchrist Connell to establish that firm’s first WA office. The remaining Minter Ellison partners will continue to operate under the Minter Ellison banner, however their practice will be financially integrated with the rest of the firm. The Perth Minters office has not previously been integrated with its eastern state counterparts. If all of this sounds like a lot to absorb, spare a thought for the Perth lawyers who now have the task of trying to analyse what all this market movement means for their practice. Some of the key trends – the disappearance of Perth boutiques and a revision of the mode of market entry by international firms – are discussed in separate articles in this edition of ALB. What is clear is that this is a substantial and permanent change to the professional landscape. “Every week it seems like there’s some change in the market and these are significant changes as well,” says Jackson McDonald CEO John McLean. “I don’t know the other Australian markets that well but I would say it is probably
March 2011
May 2011
June 2011
August 2011
• Moray & Agnew opens office • Maurice Blackburn opens office
• Cochrane Lishman Carson Luscombe – Clifford Chance merger
• Gilbert + Tobin, Blakiston & Crabb merger • Holman Fenwick opens office
• Gilchrist Connell announces office • Squire Sanders announces office • Jackson McDonald, McKenzie Moncrieff merger
www.legalbusinessonline.com
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ALB special report | Perth 2011 >>
unprecedented to have this extent of change concentrated in one market.” Perhaps the only market which comes close is Brisbane, which has had a notable influx of mid-size firms in recent years – however, Queenslanders have been spared the Magic Circle and US invasion for now.
Market reaction
When Magic Circle firms first arrived in Perth, there were some who felt that this could only be a positive development for the WA legal profession and the quest to keep high quality work in Australia. Gilbert + Tobin partner Michael Blakiston maintains this view. “Typically you used to see resource companies using, for example, Herbert Smith in Singapore,” he says. “Why do that when you’ve got the capacity here? If [clients] feel they have to use brand names I’d rather those brand names reside here
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Australasian Legal Business ISSUE 9.09
ALB special report | Perth 2011 >>
and the expertise gets developed here rather than offshore.” But there is also a sense of unease that the market cannot sustain the number of newcomers. “It’s a mature market that’s growing but it’s still fundamentally a mature market,” says Allion Legal managing principal Phil Lucas. “There isn’t a great expansion in the demand for legal services.” It is also arguable that the supply side of the equation has not dramatically changed and there is a familiar argument that the new firms in Perth are simply existing lawyers operating under a new brand. Lawyers also suggest that the Magic Circle newcomers are yet to make a real impact, although it is far too early to draw any conclusions. “I haven’t seen a massive influx of international partners or partners from the London office starting to work on the ground here,” says Mallesons partner Paul
Lingard. “The time may well come for that – maybe the full effects haven’t really rolled through. But at the moment I haven’t noticed too much of a difference to be honest – the same number of people wearing a different badge and a different hat.” It may also be worth keeping an eye on the Gilbert + Tobin/ King & Wood alliance in light of the recent confirmation by Mallesons CEP Robert Milliner that his firm had discussed the possibility of a strategic alliance with the Chinese firm. Is King & Wood looking for a new Australian partner? When asked about the alliance, Michael Blakiston said the matter was “very much up in the air.” “We have some fabulous relationships with individuals and that will be longstanding I’m sure – but it’s up to Danny (Gilbert) – he’s the key driver of that relationship,” he says. “ I think it’s been a great thing,
“I haven’t noticed too much of a difference to be honest – the same number of people wearing a different badge and a different hat” Paul Lingard
Mallesons
Continued on page 34 …
Law In Order arrives in Perth The burgeoning Perth legal market has welcomed a new addition to the mix, following the opening of Law In Order’s Perth office on August 8.
A
fter 12 years of providing services in the field of legal document reproduction, electronic discovery and other litigation support services on the Eastern seaboard, Law In Order has opened operations in the West Australian capital. “We have been thinking of opening in Perth for some time now and have been servicing the market there for a while to a certain extent,” says Law In Order director, Paul Gooderick. “More recently we have been getting an increasing amount of work from firms in Perth, so it was only natural that we open an office there.” Law In Order already services about six firms in the market, mainly top tier national firms. Established in 1999, Law In Order is a leading supplier of document processing services to the Australian legal industry and providing services to more than 1,300 law firms, corporations and government agencies nationally. Law In Order was built on the foundation of getting the smallest job right; doing it accurately Paul Gooderick and on time. “We
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treat all jobs the same in terms of quality and professionalism, no matter how big or small,” says Gooderick. Along with copy, print and scanning services Law In Order also provides specialist litigation services such as e-discovery, document coding, appeal book and court room preparation. “With a booming mining and resources industry in Western Australia an increasing amount of litigation is occurring in the market and we can provide specialist services to that segment of the legal market,” says Gooderick. Law In Order is also a registered to host Relativity, a webbased complete document review solution from the US. The Perth office will uphold the standards of practice the East Coast offices have become renowned for and will offer the same suite of services. “We will be on the ground in Perth offering the same quality of services that we offer elsewhere,” says Gooderick. “It will be a full service bureau. We will have the capacity and ability to deal with fast turnaround times, and like our other offices will be offering a 24/7 service.” Managing the new office will be general manager Kathleen LieuwKie-Song-Drown. While new to the legal services industry, Drown is a highly experienced manager having
worked across a range of midsized companies in South America and the Caribbean. “Working as a senior manager in a diversified midsized company, Kathleen VSH United Lieuw-Kie-Song-Drown Group, I gained very hands on managerial experience and have been exposed to all aspects of the business including sales, marketing, HRM, operations, finance and start ups,” she said. “Even though the industries I come from are very different to the legal service industry, Law In Order’s objectives are very similar: excellent customer service, continuous improvement and creating and fostering high value long term partnerships.” Drown completed her MBA at the Curtin Graduate School of Business last year. Joining Drown in Perth will be a team of eight professionals including paralegals and lawyers. A production manager from the Sydney office will also be relocating to Perth to ensure the smooth operation of the new office. You can find the new Law In Order office at Level 1, 2 Mill Street, Perth. Australasian Legal Business ISSUE 9.09
k o o B l a e p p A 1 3 Volumes 10 Copies Filed & Served s m e l b o r P o N can be Appeal Book Preparing an ourt ocess. Each C a daunting pr m quirements fro has different re of at, methods indexing, form es neral procedur ge pagination to one s is M . followed that need to be d an ts en requirem of the rules or l ea pp A ed a reject run the risk of valuable time. Book, wasting legal k staff has the Our Appeal Boo e to nc rie pe ars of ex k expertise and ye oo B l ea pp A ugh the guide you thro en es t lowing you to pr process thus al onally. si ctly and profes your book corre n on preparatio We can advise prepare lift documents, procedures, up in the ok bo compile the the index and mplete co re su at. To en appropriate form with a Draft e present you satisfaction, w int & bind. ior to the final pr for approval pr for a no and quote ALB y da to us l al C ing your ussion regard obligation disc . requirements
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ALB special report | Perth 2011 >>
“So if we can’t meet the King & Wood timetable for what they require, so be it” Michael Blakiston
Gilbert + Tobin
we see China as being incredibly significant but we’ve also got our own domestic market we’re trying to grow our presence in - so if we can’t meet the King & Wood timetable for what they require, so be it.” There was also some speculation that Blakiston himself might look to retire after bringing the Blakiston & Crabb/ Gilbert + Tobin merger to a successful conclusion, but Blakiston says this is incorrect. “My hair’s grey but I’ve no intention to let that stop me,” he laughed. “I’m happy here. It’s a new challenge. We have a wonderful group of talented people here and the
opportunity to do significant work in Australia – I think we can achieve that with the G+T brand.”
Mixed blessing
Despite some hiccups surrounding some of the big LNG and infrastructure projects, Western Australia remains a beacon of light for the rest of the Australian economy. However, it is impossible for the WA business community to quarantine themselves from the global uncertainty. “You’ve got to be nervous about what’s happening globally,” says McLean.
“As much as we’ve got our own little micro-economy, clearly we are not isolated. We are all looking at what’s happening in the United States and Europe with concern - it’s bound to have some knock on effect.” However, McLean stops short of inferring that any of the major resources projects are in serious jeopardy. “I would be surprised if the big LNG projects are cancelled,” he says. “Clearly they’re securing those projects through the forward sales of LNG so the bulk of it’s locked away. These are 30 year projects - they’re not going to change decisions based on one month of what’s happening on the global front.” Paul Lingard is of the same view: “Some projects are still in the feasibility stages, but you get the feeling that they are moving at a steady and determined pace,” he says. The phrase “two speed economy” is often used geographically to compare the fortunes of different States, but
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Australasian Legal Business ISSUE 9.09
ALB special report | Perth 2011 >>
Lavan Legal managing partner Greg Gaunt points out the concept is just as applicable within Western Australia. He says that the suffering is not limited to the usual suspects such as the retail industry. Even within industries directly related to mining, there are varying degrees of prosperity. “Things are not happening as quick as people thought they would,” he says. “When projects are delayed you’ve got, for example, engineering firms that have already geared up for things to happen – so when things are put on hold, there’s a bit of pain and suffering even at that level.” It is interesting to see that the argument that the mining boom has not benefited the entire economy is being ventilated even in Western Australia. “There’s a real issue as to whether we’ve got a boom in Western Australia or a boom for Western Australia,” says Gaunt. “Some people are not the seeing benefit of it, but
they’re catching the bad side of it – increasing costs and increasing infrastructure pressure.” Indeed, rising overheads was a topic raised by many firms, although most preferred not to comment on the record. “We would want to pay our top secretaries $60,000 – well they can get $85,000 from an engineering firm,” one partner told ALB. “ I have a client who’s paying a secretary $80,000 just to answer the phones – well before, you could get away paying $40,000. Another firm told ALB that they had signed a lease for office space in 2007 and that space in the same building was now being offered at double the 2007 rate. So despite the hype, Perth firms have plenty of reason to keep their feet firmly on the ground. Their market has its problems, but they will freely admit that they still feel fortunate. “You wouldn’t want to be anywhere else in world,” concludes Greg Gaunt. ALB
“Things are not happening as quick as people thought they would” Greg Gaunt
Lavan Legal
Jackson McDonald lawyers
www.legalbusinessonline.com jacmac-ALB art.indd 1
1/09/11 12:47 PM
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ALB special report | Perth 2011 >>
Photographed by Tracy Toh
Is the Perth boutique firm an endangered species? High end corporate boutiques are beginning to disappear from the Perth market – but is the trend just temporary?
“We’ve thought long and hard about it, but we just don’t think it’s the right thing to do” Phil Lucas
Allion Legal
36
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igh quality boutiques have been a feature of the Perth market for a number of years, but their numbers are now beginning to diminish. McKenzie Moncrieff has merged with Jackson McDonald; Blakiston & Crabb has merged with Gilbert + Tobin; Cochrane Lishman Carson Luscombe has joined Clifford Chance and Salter Power and Franklyn Legal had their respective flirtation with Middletons, albeit with mixed success, in 2008. There is a view that the disappearance of Perth boutiques is an inevitable consequence of junior miners requiring a greater range of legal advice as they evolve into more sophisticated organisations. Former boutique firm owner Michael Blakiston says this was part of the reason which led him to pursue a tie up with Gilbert + Tobin. “It was becoming more competitive and we had to increase our
service offering,” he says. “There were areas like competition and regulation, areas we haven’t practised in and we would either have needed to make lateral hires or spend considerable time getting up the learning curve. With Gilbert + Tobin we didn’t need to, they already had the best practice in Australia.” Jackson McDonald CEO John McLean says that the McKenzie Moncrieff merger was also inspired in part by the changing face of the mining sector. “Their needs have definitely evolved,” he says. “You’ve got small companies that have grown to mid-size and the range of legal services they need are expanding. Clearly [McKenzie Moncrieff] saw the advantage in size and having access to all the different areas of Jackson McDonald. When clients in the mining sector are growing they need access to the full range - particularly tax and workplace Australasian Legal Business ISSUE 9.09
ALB special report | Perth 2011 >>
relations and IP which only come when you have got firms a certain size.” Allion Legal is one of the few Perth boutiques that has not sought a merger. Managing principal Phil Lucas says that the firm has had many approaches from national and international firms but does not believe a merger is the right course. “We’ve thought long and hard about it, but we just don’t think it’s the right thing to do,” he says. “There is very strong demand for legal services in the space we’re in and if you sit back and think about the consequences of joining a national or international firm - well, you need to reconcile where that fits in relation to market opportunity.” Lucas is of the view that strong workflow from mid-cap miners will continue and large national firms may not be ideally placed to capture that market segment. “I think there’s a mismatch between what the nationals and internationals want from their client base and what the mid-caps can deliver,” he says. “I’m not sure these are the clients the nationals want to act for or are able to act for. There may be people who want to do that work, but they might not be able to because there’s an actual or perceived conflict inside the firm or that’s not where the strategy of the firm lies.” History is cyclical and Lucas predicts that the Perth boutique will rise again as a dominant law firm model. He expects the increased competitive pressure will result in attrition at the large firms for quite different reasons. On the one hand, some partners may find the performance pressures too great and either find or be shown the exit. At the other end of the scale, high performing partners may become disillusioned with big firm culture and vote with their feet. “We could foresee the next generation of boutiques starting to emerge over the next couple of years and that’s where the competition will be,” says Lucas. www.legalbusinessonline.com
“If you look at the history of boutiques, we are people who have left large firms and that cycle will eventually repeat. There’s clearly a good market which the nationals or internationals can’t or don’t want to service. People will identify that opportunity.”
Mid-cap miners
The difficulty with identifying with the junior mining market is that this market is itself in transition. Relationships between firms and clients are evolving as a consequence: lawyers who previously dealt directly with a CEO or board are now finding themselves reporting to a GC. “You’ve got to change the way you do your business,” says Blakiston. “Lawyers are an expensive commodity ,there’s no doubt about that. You previously might have had a relationship with a CEO and the value proposition was understood, whereas the lawyer might see you as purely a legal service provider and you have to allow that relationship to develop. And that’s a good thing. Id’ much rather have those challenges of learning, dealing with change and adapting.” One of the ironies of the mining boom is that the real dividend for lawyers might come in the form of back-end work. As the saying goes, you can spend five years building a project and ten years arguing about it – and it is the junior and mid-cap space which is said to be particularly vulnerable. “A lot of this is new for everyone,” says Lavan Legal managing partner Greg Gaunt. “Some mid-cap guys
have a fantastic relationship with contractors and they’ve always got on well. You could almost do deals on a handshake but then there’s an argument and it’s a serious argument. They can’t just resolve it at the table and have a handshake at the end - it’s getting too complicated for that.” This is a new challenge for these miners. “They didn’t have the money to get too carried away with their contracts; they trusted their contractors- it was a different way of life for them,” says Gaunt. “Now luckily some of them can make good money from iron ore but a lot of them aren’t at the production stage. The promise looks good, the asset value looks good but getting it out of the ground and sold is still a challenge.” Top tier lawyers have always maintained that boutique and mid-size firms have never completely owned the junior and mid-cap mining space. According to this theory, junior miners have often been prepared to pay top tier rates because of the high stakes involved. “They’re making effectively life and death decisions for the company - they want people they can trust and that’s where they value large firm involvement in those situations,” says Mallesons partner Paul Lingard. “And generally it’s personal money on the line because the people on the board are large investors in the company and they want to make sure whatever legal advice they get is right. Certainly that’s the way I’d approach it if my house was riding on it.” ALB
“The promise looks good, the asset value looks good but getting it out of the ground and sold is still a challenge” Greg Gaunt
Lavan Legal
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Feature | interview >>
In-house perspective
Simon Tuxen, Westfield Group:
Shopping around for good services Everybody likes a bargain and Simon Tuxen, group general counsel at Westfield Group, is no different when it comes to legal services, reports Olivia Collings
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estfield. It’s a brand synonymous with shopping, Australia and the Lowy family. From humble beginnings in western Sydney the Westfield Group has grown into a multinational organisation worth more than A$59 billion. Late last year the organisation proved yet again how shrewd it is, breaking up the group to create a separate retail trust on the ASX. Leading the legal aspects of the project was group general counsel Simon Tuxen. “It was a very complex, intensive process,” recalls Tuxen, a lawyer with more than 25 years experience. What started as an idea at the start of 2010 became the Westfield Retail Trust (WRT) worth A$12 billion by December 23. “It was very intellectually difficult for six months, coming up with an acceptable structure,” he says. “The last six months were the slog, coming up with all the documents, establishing a new board, briefing them, getting licences, it was never ending.” The Westfield Retail Trust now owns
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54 of the Westfield Group properties across Australia and New Zealand and according to chairman Frank Lowy, creates a geographic and asset specific investment vehicle that provides investors the opportunity to partner with Westfield Group in the ownership of retail real estate in Australia and New Zealand. “The group is always very active on a capital management front; they are always looking at optimising the capital structure of the group, to make sure that it is the best we can achieve for the shareholders,” says Tuxen of the move. Indeed, in 2004 Westfield merged separate trusts into one to form the Westfield Group and by 2010 it was taking them apart and creating a new entity. This, says Tuxen, is one of the exciting aspects of working for the group, along with its extensive international portfolio. “The part that people don’t realise is just how international we are – the size of our business in the United States, our offshore business is just as big as our Australian business, if not bigger,” says Tuxen.
And it’s getting bigger. Just last month the group announced a foray into two new markets, Italy and Brazil, adding onto interests in the US, UK and New Zealand. “The constant scouring of the world for opportunities creates enormous interest, but challenges as well,” says Tuxen. “We make very large capital investments in the centres, so we are very conservative about the risks that we take with our capital because shopping centres are not mobile.” A majority of the overseas business is in the United States, but more recently Westfield has developed the largest shopping centre in Europe, Westfield Stratford, near the 2012 Olympic site in London set for completion later this year.
Preparing for Westfield
Like many general counsels, Tuxen has had a career rich in corporate work and international experiences. He began his career at Mallesons Stephen Jaques as a finance lawyer, and spent more than 10 years at the firm including five years as a partner. Australasian Legal Business ISSUE 9.09
Photography by Thilo Pulch
Feature | interview >>
www.legalbusinessonline.com
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Feature | interview >>
At the end of 1992 he decided it was time to do something different and took on a secondment role in at the Jardine Matheson Group in Hong Kong. He went on secondment on the understanding that afterward he would join the Mallesons Hong Kong office, but he enjoyed his secondment so much, he stayed. “I called Tony D'Aloisio the managing partner at the time and said ‘I don’t think I will be coming back’,” recalls Tuxen. When asked what appealed to him about staying in-house Tuxen jokes “a lack of time sheets”, but he concedes it’s much deeper than that. “Being in the thick of things, having a true involvement in the corporate objectives, it’s very different from the detachment you have to have as an external lawyer,” he states. The diversity of an in-house role also appealed to Tuxen, who even during his time in private practice jumped from IP to tax to banking and finance and a variety of other practice areas. “Law firms and practices are evolving; people are becoming more and more specialised. I think your real opportunity to be a generalist is in inhouse,” he says. Tuxen’s current role is definitely diverse. Along with capital restructures, Westfield regularly undertakes new projects, redevelopments, purchases and joint ventures. But despite all of this he likes to have a close involvement to the deals being undertaken– wherever that might be. “I like to have a very close involvement on the major transactions the group is doing, as a lawyer,” says Tuxen. “I see that as part of what I bring to the company.” His role also requires him to oversee the team of plus 35 lawyers spread across Australia, the UK and United States. “We run comparatively small teams in each country but we staff them with senior people. The expectation is that the lawyers we have in-house are of partner quality and senior enough to be able to contribute significantly on the transactions they are working on,” he says. While some of the more standardised work the company requires, such as 20,000 plus leasing agreements, is outsourced Tuxen expects his team to be on top of all strategic legal work. “Our philosophy is never to just bundle 40
things up and give them to external lawyers,” he says. “The expectation is that whenever something needs to be explained, whether to senior management or the board, either I or someone in the team will be able to explain it. Not an external lawyer.” As general counsel Tuxen also sees it as his role to have input on regulatory changes that will affect the company. “General counsels in Australia really need to play an active role in not only briefing people on the legislation being produced, but being more active in making sure governments hear the views of major corporations before legislation is introduced,” he explains. With regards to the mining tax and carbon tax Tuxen says companies have had success in influencing legislation but less so in the areas of remuneration reform and tax reform. “We got very little notice on those. The last round of remuneration reforms, we were given only three weeks over Christmas,” he says. “I think maybe general counsels could do more to make themselves heard.”
Shopping around
As with any general counsel, it’s also important for Tuxen to manage the relationships and allocation of legal work to external law firms and lawyers. There is no set legal panel in any of the jurisdictions and work is generally allocated to firms or individuals with whom the company has a long relationship. “We are very loyal to the people that have worked with the group for a long time, but we are a very demanding client,” he states. While Mallesons were the lead lawyers on the WRT restructure, Tuxen insists work is not limited to the big end of town. “We have tremendous relationships with big and small firms, and individuals in firms, who have earned our trust and respect,” he says. In fact, as with the retail trust, Tuxen says he will regularly use a variety of individuals from across the country to complete projects for him. “It (WRT) was a great example of how we like to work with our firms and a great opportunity to deal with many firms at the same time,” he adds. Other firms included HWL Ebsworth, Russell McVeagh, Grenwoods & Freehills, Gilbert + Tobin and Watts Legal Consultants.
“Tom Watts is highly regarded by the company, he’s a specialist in the M&A property work, and it’s a one partner firm,” explains Tuxen. However, it’s not all bad news for firms not yet on the Westfield books. “Because some of our relationships are based on individuals, they sometimes move on - that creates opportunities for others,” says Tuxen. If someone shines in their field Tuxen is equally open minded, because, at the end of the day he wants the best people doing the work. “We want work that is going to deliver a cost efficient high quality service to the group,” says Tuxen. “It’s not just hourly rates; it’s very much about the service we get, the problem solving abilities, the creativity.” Despite being an increasingly global company, Tuxen says he is unmotivated to shift work to the growing number of international firms in the market. “We are confident enough in the relationships we have to not think that the international one-stop-shop is really what we need. We do a lot of research when we go into a new market to find the right firms to deliver the expertise we want,” says Tuxen. “That’s not to say that the international firms would not be good, but rather, that we would look at those firms at a market by market basis.”
What next?
In recent months the global economy has been turbulent to say the least and a high Australain dollar is having a significant impact on the local retail sector. Yet, despite all of the current market issues, the Westfield Group pushes on, investing, buying and building in new centres across the world. “The big challenge is for the company is to continue to take risks,” says Tuxen. “We are conservative when market conditions demand it, but as we showed when we developed and opened Westfield London and Westfield Sydney, in pretty poor times, we are prepared to take a long view and say: ‘we believe in the projects we are doing that what we are doing is the long term best interest of the group.” With someone like Tuxen to guide them along, it’s no wonder Westfield can make spending money look so good. ALB Australasian Legal Business ISSUE 9.09
feature | Retention and Succession Planning >>
The quest to keep the best How do law firms sort the wheat from the chaff and adequately reward those with the talent, drive and enthusiasm to last the distance? Kalianna Dean investigates the vexed question of retaining talent.
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“The market is fairly transparent in regard to salaries” Philip Maitland
Buddle Findlay
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here are many factors contributing to lawyer satisfaction with their firm and perhaps one of the most easily measured of these is salary. It’s a straightforward issue and firms need to keep within defined parameters to stay competitive, according to lawyers and HR professionals. “Remuneration is just one of those things that you need to get right. It needs to be competitive with the market and reward performance and contribution, but it alone won’t keep talented people,” says Jane Lewis, director of people and development at Allens Arthur Robinson. Lawyers are in the enviable position of being able to comfortably ask for a market-driven salary and unless there are exceptional circumstances, they are likely to get it. “The market is fairly transparent in regard to salaries,” says Philip Maitland, chief operating officer for New Zealand firm Buddle Findlay. Helen Lee, the HR director at Curwoods, agrees, and adds that lawyers know they can get a market salary wherever they go. “There’s a threshold, I think, above which they’re happy, and at which they feel fine and once you reach that threshold then I think that there
are other things which become more important.” However, salary is not necessarily the top consideration. “Mostly you will find on large international surveys that salary comes in at about number eight on the list of things employees want from their employer. It is usually nowhere near the top,” notes Peter Coats, managing partner of Minter Ellison’s Melbourne office and head of the firm wide corporate risk practice. Independent firm research tends to agree with this. “Our experience, along with our independent research, shows that quality of work, good feedback and mentoring and coaching are the most important factors for retaining staff,” says Henry Davis York partner Matthew McMillan.
Salary freezes
Salary freezes occurred at many firms during the GFC. It is easy for this issue to undermine staff morale and encourage a cynical attitude towards management. Coats says that clear communication is the key to ensuring this does not occur. “We did introduce pay freezes but we communicated with our staff. We had to protect the viability of Minters, a firm which Australasian Legal Business ISSUE 9.09
feature | Retention and Succession Planning >>
►► Less room for partners? Six out of eleven of Australian firms with more than 100 partners have reported an overall decrease in partner numbers in the three years since July 2008. What are the implications for retaining ambitious senior associates? Firm:
Percentage decrease in partner numbers since 2008:
Clayton Utz
8.1
Freehills
9.6
Allens Arthur Robinson
7.5
Mallesons Stephen Jaques 10.5 Norton Rose
0.7*
DLA Piper
31.3*
Source: Australian Financial Review Partnership Survey (as at July 2011) *Norton Rose – projected figures were provided. Previously Deacons Australia *DLA Piper – Previously DLA Phillips Fox. Does not include NZ or Adelaide offices
employs over two thousand people. The viability of the firm is very important to all the people who work here,” he says. “We got no flak about that, we got tacit agreement.” In July 2009, when the worst fears about the GFC were not realised, partners took swift action and held a pay review out of cycle to immediately correct the situation for some staff who had been seriously underpaid. The next cycle saw a normal pay review and salaries returned to an upward trajectory. Allens is another firm which had pay freezes for some of its employees. Again, communication was vital with the firm conducting a number of ‘town hall’ style briefings and floor presentations by the CEP to keep the firm’s lawyers informed throughout the process. “There were two sides of the equation, making a decision and communicating,” says Allens’ Lewis of the decision on how and when to deal with salary freezes or increases. Both Coats and Lewis emphasised the importance of talking through the challenges the firm faced during the GFC with lawyers, making them www.legalbusinessonline.com
see the decision from a survival point of view and not any kind of personal attack. It is this approach which perhaps helped both firms avoid a reputation as an axe-wielding profit churning machine. Certainly partner profits were maintained, but they were the ‘last thing to fall out at the end’ after financial review, according to Coats: “Partner profits are something you just don’t know. You can think you’re having a great year and then two months before it’s over things turn bad or they pick up from a couple of massive wins in litigation.”
Benefits ‘peripheral’ to quality work and culture
Gym classes, fruit baskets, sporting and cultural endeavours and flexible working hours may be standard perks of the modern law firm, but firms which rely on these alone to retain staff may not be so successful. “Like remuneration, benefits tend to be something that you just have to get right to be competitive, but in my experience they don’t provide enough of a point of difference between firms to act as an attraction or retention hook,” says Lewis. One concept which seems to be particularly important is the quality of work on offer. According to Lewis, this can refer to three key things: Firstly, working on matters for market leading clients; secondly, doing the most complex and high profile work in their area of speciality, and thirdly, having the opportunity to make meaningful contributions in the work done. That can include pro bono work, which is regarded as a high source of satisfaction for lawyers. Kerin McMahon, director of HR at McCullough Robertson, adds that quality work is about innovation as well as procedure and excitement as well as expertise. “Whether the deal is big or small, if you get to play a big part in it, and you’re recognised for the results, that’s quality,” he says. Fundamentally staff want to know that the firm they work for is as committed to them as they are to the firm, says Katherine Henry, director of people and development at Corrs Chambers
“Benefits tend to be something that you just have to get right to be competitive, but in my experience they don’t provide enough of a point of difference between firms to act as an attraction or retention hook” Jane Lewis
Allens Arthur Robinson
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feature | Retention and Succession Planning >>
Peter Coats Minter Ellison
“There are a number of good mid-tier firms but I don’t think they’re making great in-roads into the territory of top-tier law firms” Peter Coats
Minter Ellison
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Westgarth. “We want to keep the knowledge that we have helped to build in them. That whole challenge of the difficulty of replacing people is very much a core focus,” she adds. “The lawyers here want to know we’re listening to them talk about their careers and how they want to develop,” adds Andrew Korbel, a partner with Corrs. Interestingly, both Korbel and Coats mention that their firms are as eager to please the lawyers who don’t want to become partners as those who do. “We don’t subscribe to the McKinsey philosophy which says after five years we’ll make you a senior associate or tell you to go, or after ten to twelve years we’ll make you partner or tell you to go. Why can’t people who work here but don’t want to be partner have their careers? ” asks Coats. “We know there are a lot of other things going on in people’s lives.” There are a lot of happy Corrs lawyers who never want to be a partner, according to Korbel. “We accept and in fact expect that but we want to develop those people all the same,” he adds.
Matthew McMillan Henry Davis York
Are the mid-tiers winning the retention race?
It is often suggested that midtier firms are proving to be more adept at providing the kind of work environment, both in terms of work quality and work/life balance, that lawyers are looking for. Coats does not agree with this view. “There are a number of good mid-tier firms but I don’t think they’re making great in-roads into the territory of toptier law firms,” he says. “Of the offers that we made that didn’t come here, only I think one went to a mid-tier firm, about nine went to other top-tier firms. I see numerous CVs come across my desk every week and I think I can safely say that there are always many more people in the mid-tiers who want to come to the top tiers.” McMillan is also an advocate for the ‘size isn’t everything’ side of the debate. “At the end of the day size isn’t what attracts quality staff or talent. Two attributes do – culture and the potential to partner with clients and help them achieve their goals.” ALB Australasian Legal Business ISSUE 9.09
feature | Retention and Succession Planning >>
Success in succession With many of the current breed of partners eyeing retirement, Olivia Collings investigates how firms can groom the next generation of leaders
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aving staff stay on at a firm can be valuable for a number of reasons, but one of the top reasons is that it assists in the succession planning process. Legal practitioners can leave roles for a variety of reasons and in a variety of ways, but with an aging population, an increasing number of senior practitioners are looking to retire. Across the East Coast of Australia the number of legal practitioners 50 and above in July last year was 13,669, representing almost a third of lawyers (28.5 percent). While the move into retirement no longer means going ‘cold turkey’, the issue of succession planning is one that is growing increasingly important at law firms, which rely heavily on the relationships between partners, clients and management. “You never want to be in the position where if something happens to one person you have no business or have a problem in the business,” says Stuart Fuller from Mallesons Stephen Jaques. Fuller is the managing partner at Mallesons and will be stepping into the chief executive partner role when Robert Milliner steps down on January 1 next year. According to Fuller succession planning is more than promoting senior leaders within the firm; it’s about identifying people based on their capabilities at a variety of levels. “You want to have enough redundancy around capability in the firm so that you are not that reliant on that person in the role. That way there is more flexibility in the firm, when it
www.legalbusinessonline.com
comes to filling leadership roles,” he explains. Freehills managing partner and CEO Gavin Bell knows only too well the importance of planning for succession in a firm: “The strength of the firm at the end of the day is the people in the firm, so having the right people, developed and experienced and available at the right time is one of the major things you need to get right,” he says. For this reason Freehills has a firm wide approach to succession planning which involves looking at staff at all levels and what skills they will need in order to progress to and move into new roles. When it comes to planning for the succession of lawyers and partners at Piper Alderman, managing partner Tony Phelps says the chief motivating factors are client relationships and knowledge. “It’s important to make sure that the knowledge of clients is staying within the firm,” says Phelps, who took over from previous managing partner Gordon Grieve mid last year. As evidence of the firm’s commitment to keeping knowledge in the firm, Grieve has stayed on as chairman. Norton Rose Australia is set to go through a similar transition early next year, after it was announced Don Boyd will step down from his role as managing partner to focus on his other role, group deputy chief executive of the Norton Rose Group. “It’s obviously a very important process for a law firm,” says Boyd, who has been in the leadership role at the firm for more than 10 years, and during 45
feature | Retention and Succession Planning >>
State by state legal profession demographics ►► NSW Age
Number
Percent of total legal profession
30-39
7,278
30.6%
40-49
5,185
21.8%
50-59
4,365
18.4%
60-69
1,999
8.4%
70-74
239
1%
75+
139
0.6%
Source: NSW Law Society 2010 Annual Report
►► Victoria Age
Number
Percent of total legal profession
31-40
4,722
29.5%
41-50
3,257
20.1%
51-60
2,896
18.1%
61-70
1,401
8.7%
71+
277
1.7%
Source: Victorian Legal Services Board 2010 Annual Report
►► QLD Age
Number
Percent of total legal profession
30-39
2730
31.2%
40-49
1978
22.6%
50-59
1530
17.5%
60-69
716
8.2%
70+
107
1.2% Source: Queensland Law Society
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a period of substantial change. Boyd will be replaced by the Australian and global practice group leader for the employment and labour practice, Wayne Spanner who has been working closely with Boyd since 2008.
Planning for the unexpected: lateral and internal appointments
While retirement is one factor, senior members of a firm can leave for a variety of reasons, and sometimes on very short notice. Law firms have a responsibility to their staff and clients to make sure that even unexpected departures are covered in their plans. According to Bell the fact that departures can happen at any time and for a variety of reasons is why they have taken “the more - the merrier” approach when it comes to succession planning. “The purpose of the long term planning approach is to ensure that we have people who are available ideally whenever a role comes up,” he says. In some cases a firm may just not have the right person to fill a role at the time they need them. In cases such as these firms will often call in external candidates. This was the case at Baker & McKenzie Australia last year when it appointed former Gilbert + Tobin partner Chris Freeland to the top job. “We thought about it strategically, we thought the firm would benefit from some fresh thinking from outside the firm, and a fresh set of ideas,” chairman Bruce Hambrett explains. “I think there is a danger, in organisations which don’t have the benefit of an outside perspective, to engage in group think – where they all agree with each other and charge forward without anybody giving them the advantage of another perspective.” Bringing in someone new, but respected, also assists in undertaking changes within the firm says Hambrett: “I think it’s easier for someone from outside the organisation to facilitate a change in agenda, because they don’t bring the baggage, and won‘t be perceived to be speaking from a particular vantage point influenced by relationships within the firm.” Freehills recently hired Keith Robinson from Minter Ellison to lead its information and technology group, but Bell insists it’s not something the
firm likes to make a habit of. “We don’t hire laterally very much, we generally prefer to develop our own talent. We do it where we have a gap, or where we feel there is an opportunity in the market which we can’t fill immediately with existing resources,” he says. In both cases the firms and the new recruits emphasise the importance of having a person with not only with the right skills, but also the right cultural fit. “We put a lot of focus on getting to know the person, working out whether they will fit in with the other people in the group, whether they can work with the other people in the group. You need to do your research and a degree of due diligence,” says Bell. For Freeland ensuring a cultural fit meant meeting with approximately 40 partners at Baker & McKenzie during the “courting” phase and completing his own due diligence on the firm through speaking with lawyers and clients who had dealt with them. However, not all firms are willing to take the leap on someone new when it comes to senior appointments. “I would be surprised and reluctant to go outside the firm to fill a management position. I just don’t think it will work,” says Phelps. “I think it’s difficult to impose external leaders on the existing partners, but it would be different with administrative managers.” Grieve adds that it would be harder to maintain the culture of a firm if someone was bought in from outside at the top. However, both concede that if it was a change the firm was after, bringing in new blood could be the best solution. “You would only bring someone in at that level if you wanted to change the culture of the firm,” adds Phelps.
Learning to let go
No matter how devoted, helpful or courageous a leader has been, at some point everyone must step aside from the top roles. “You obviously need to turn over management on a reasonably regular basis,” states Phelps. Most leaders will stay on at their firms in a less active role, as is the case at Piper Alderman, Mallesons and Norton Rose; however there are advantages and disadvantages to this move. As everyone knows, old habits die hard. “You need to be careful not Australasian Legal Business ISSUE 9.09
feature | Retention and Succession Planning >>
“I think it’s important that the person coming up should stamp their authority on the job and how they are going to do it” Gordon Grieve
Piper Alderman
to give too much advice,” says Robert Milliner, chief executive partner at Mallesons. “One of the benefits and value of change is change, and I have been highly cognisant of not wanting to do the role for too long, because it’s very important for the firm to have the benefit of new ideas, new approaches, new energy, etc.” Grieve took a similar approach when he stepped down from his role, so that Phelps had room to move. “I took the view that I should stand aside and not be advising on how to do things. If Tony had a question he could come and ask me, but I think it’s important that the person coming up should stamp their authority on the job and how they are going to do it,” he states. For those entering the chair, Phelps says it’s important to take a “flexible” approach into the new role and avoid being too “dogmatic” straight away. While it’s important for leaders to have a vision and a fair idea about what they are doing, Phelps advises that they bend a little too. Mallesons’ Fuller says that a decisive manner is important. “You have to do it in your own way,” says Fuller. “If that is www.legalbusinessonline.com
how you want to do it, don’t let the firm dictate to you on how you will do it either based on how it has been done in the past or how they want it done,” he says. In between these two views is Freeland, who has had to come to terms with not only a new role, but also a completely new firm. “I think there has to be recognition that there is a learning curve involved, and it can be a pretty steep learning curve at first,” he says. Having been in the managing partner role for a year, Freeland says he is just now beginning to feel equipped to fulfil his role. ALB
Update: In ALB’s review of postgraduate study options in issue 9.8, outdated information was featured in relation to the College of Law. Updated information is now available at www.legalbusinessonline.com. au and the College can also be contacted on 1300 856 111. 47
feature | Intellectual property >>
The art of innovation Whatever the economic environment, it’s never a good time to neglect your IP, lawyers tell ALB’s Renu Prasad
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llowing for the usual “lag factor” between economic events and their impact on law firm workflows, IP lawyers report that they are experiencing a robust level of work. How corporates react to the increasingly gloomy economic environment remains to be seen, but for now the picture remains positive for IP experts. According to statistics from IP Australia, patent filings nationwide grew modestly in FY2011 after significant contraction in FY2010 and 2009. The growth statistics are not remarkable, but they’re heading in the right direction. The Australian government’s carbon scheme, designed to encourage innovation in post-carbon technology, is apparently already making its mark.“Patent filings continue to increase,” says Davies Collison Cave partner David Webber. “We are seeing people starting new businesses in the energy sector, for example companies are looking at better monitoring of energy use in general. Logistics is another area where we’ve seen a lot of filing. In fact we’ve seen it since the ETS scheme was proposed - that’s
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all driving development in particular areas.” Griffith Hack principal Wayne Condon has also seen this trend, although he says that this growth area has existed for at least three or four years as companies anticipated the introduction of a carbon scheme in Australia. “It was a matter of time before something like this [was introduced],” he says. “Our clean tech group has seen a lot of activity both around patent filing and licensing: out-licensing or bringing technology into Australia to commercialise it. It’s a huge growth area.” New Zealand also has a carbon scheme, although Hudson Gavin Martin partner Wayne Hudson does not necessarily draw a link between this and the level of innovation. “There has been no carbon tax impact, even though there may be some new green technology coming out - there always has been,” he observes.
Counter-cycle
In this uncertain environment, there’s both a sense of boom and a sense of bust in IP workflows as disputes and innovation matters alike keep lawyers busy. “A year ago we were finding that IP litigation was absolutely booming. We were seeing very little commercial IP relative to litigation. Since about March this year litigation is continuing but we have seen a huge increase in the amount of commercial work coming in,” says Minter Ellison partner Lynne Peach. “For example overseas brands wanting to press for registration of a trademark or prosecutions for infringements within Australia. Things really did pick up on that front.” Wayne Hudson says the fact that funding for new projects may be tight does not necessarily mean that IP commercialization work has dropped away. “People are looking to use technology better and are investing in it to deliver cost savings,” he says.
Financial Year
03/04
04/05
05/06
06/07
07/08
08/09
09/10
10/11
AU Patent Filings
30459
31904
33180
34844
34878
32574
31609
32097
Source: Griffith Hack, based on data from IP Australia Australasian Legal Business ISSUE 9.09
feature | Intellectual property >>
►► PATENT FILINGS - AUSTRALIA FY04/05 – 5% increase from FY03/04 FY05/06 – 4% increase from FY04/05 FY06/07 – 5% increase from FY05/06 FY07/08 – 0.1% increase from FY06/07 FY08/09 – 7% decrease from FY07/08 FY09/10 – 3% decrease from FY08/09 FY10/11 – 1.5% increase from FY09/10 Source: Griffith Hack, based on data from IP Australia
“Companies are also valuing brands and IP more in these financially tight times, trying to differentiate themselves on the basis of reputation – and hence brands - and trying to see if they can create an income stream by exploiting/commercialising that which they have produced for their own use.” IP workflows are evincing a mix of optimism and caution as corporates temper their growth expectations in line with the fluctuations of the global market. FB Rice managing partner Brett Lunn says that IP lawyers should adjust their client service accordingly. “Clients increasingly want certainty in pricing and costs as well as assurances that each step of the IP process is carefully planned and commercially viable,” he says. “Both of these significant developments are driven by the need to balance economic uncertainty with management of the value of an intellectual property portfolio.” Firms see opportunity in “value add” IP services which do not fit into the traditional patent attorney or IP legal advice categories. A number of firms are offering consultancy services which assist clients to develop and implement an IP strategy. Griffith Hack has a tax group devoted to providing advice on research and development tax matters. “We’ve purposely gone and identified niche areas in IP where we consider we can offer services to our clients and to future clients that fit nicely within the IP firmament,” says Condon.
China and off-shore
China is well known for its increasing levels of innovation, with ThomsonReuters statistics showing that the Chinese are drawing level with the United States in terms of the numbers www.legalbusinessonline.com
of patents filed worldwide. However, there is also a view that the number of patent filings exaggerates the level of Chinese innovation. Proponents of this view point out that the vast majority of Chinese applications were made domestically within China, covered minor innovations and were not backed up by corresponding applications with the leading overseas patent offices. Australian lawyers are watching China with interest, but they have not been overwhelmed by an inflow of work just yet. “We’re not seeing a flood as yet,” says Webber. “It may be just a timing thing or just a monetary thing – Chinese companies wanting to pool resources into Europe and the US. It’s difficult to judge what the reasons are. Maybe they have realised that only certain patents will only get up overseas so they don’t bother filing here.” Peach says that Chinese workflow has been strong, albeit flowing mainly in one direction: “A significant amount of IP work in Australia is coming from offshore,” she observes. “We feed a lot of work into China, but we don’t see a lot of it coming out of there itself. Work outbound to China has increased.” It’s a similar story over in New Zealand. “We have had some limited inbound NZ and Australian trademark filing work from China, but nothing substantive,” says Hudson. “We are also seeing clients having to deal more and more with IP issues in China if, for example, they manufacture there.” Condon says that his firm has detected an increase in the number of patent filings coming out of China. However, he has not seen a great deal of enforcement work from Chinese companies in Australia. “There are a couple of Chinese companies that are quite heavily engaged in IP enforcement in Australia – largely in electronics – but I wouldn’t say it’s common yet. I do believe it will happen in the very near future,” he says. Condon says the stereotype of China as a counterfeiters’ paradise is outdated and that there are clear signs of robust enforcement activity within China – perhaps a necessary step if China is to expect protection of its own IP abroad. Other forms of off-shore work are giving credence to the old cliché about counter-cyclical legal practice. Online
“There are a couple of Chinese companies that are quite heavily engaged in IP enforcement in Australia – largely in electronics – but I wouldn’t say it’s common yet” Wayne Condon
Griffith Hack
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feature | Intellectual property >>
shopping is frequently cited as a factor contributing to the current malaise in the Australian retail industry, but the other side of the equation is that overseas retailers are engaging Australian lawyers to boost their online offerings down under. “Late last year and into this year there has been huge interest in the Australian market by overseas retailers,” says Peach. “We’ve been doing lots of work assisting them - that goes hand in hand with what’s happening in the retail sector and the economy in general.”
Aggression
“Companies are also valuing brands and IP more in these financially tight times, trying to differentiate themselves on the basis of reputation – and hence brands - and trying to see if they can create an income stream by exploiting and commercialising that which they have produced for their own use” Wayne Hudson
Hudson Gavin Martin
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A highly visible trend in the IP landscape has been the increasingly aggressive tactics used by IP holders to assert their rights. One recent example involves Apple Australia launching proceedings against Samsung over a product which was said to be deceptively similar to Apple’s own Ipad and an infringement of ten Apple patents. Another particularly high profile brawl has been an action between internet service provider (ISP) iiNet and 34 film studios and related entities over the liability for alleged copyright infringement by iiNet users. The original decision in favour of iiNet was affirmed by the Full Federal Court in February and the dispute looks set to continue in the High Court. “Certainly [IP owners] are more aggressive in taking or threatening actions or trying to licence their rights,” says Webber. “They are not sitting back anymore. We’ve seen it on the copyright front and on the patent front. With technology patents we’ve seen almost a ‘flow on’ from significant technology litigation in the United States.” Webber says that courts are placing greater pressure on litigants to mediate IP disputes rather than litigate. “We certainly make all our clients aware that the courts will first try and move you into mediation,” he says. “Most disputes, particularly for our clients will normally occur in negotiation in any event before proceedings start.” While mediation may have some success with smaller disputes, Webber is unsure of how effective it is in the larger matters, perhaps because there is so much more at stake. “ Litigation in those circumstances can also be part
of a larger proceeding that has been started elsewhere by an international client,” he observes. It may be easy for corporates to flex their muscle against each other, but infringement proceedings against individuals present an entirely different problem. It’s an issue which has come to the attention of lawyers with the rise of social media. “I’m seeing a lot of concerns raised by clients arising out of what’s happening in social media,” says Peach. “More and more clients are coming for advice about social media sites infringing trademark or copyright.” Such matters often do not lend themselves to the traditional dispute resolution model. “It’s very transient,” says Peach. “The merits of getting involved in a court case that might run 12 to 18 months probably are not there at the moment.” Not to mention that pursuing an individual presents the possibility of a public relations nightmare. “Because of nature of people who engage in social media the last thing you want to do is create a bigger issue as you deal with them,” observes Peach. United States law is able to deal with this issue in part through antidilution legislation which affords extra protection for distinctive trademarks beyond that provided by normal trademark protection laws. “We’ve been hearing calls in the trademark area for our trademark law to be amended to introduce trade mark dilution,” says Peach. “Dilution is already being used a lot in the United States in the social media context, which [provisions] we don’t have. Much of the trademark use on social media sites does not satisfy the criteria in Australia. It’s really having a very bad impact on the brand and the value of the brand and there is very limited recourse.”
Legislation
At the time of writing, significant new reforms to Australian IP law were in the pipeline. The Intellectual Property Laws Amendment (Raising the Bar) Bill 2011 has been introduced into the Senate. The Bill amends laws relating to patents, trademarks, copyright, design and plant breeders’ rights and some of the headline reforms include tougher measures against trade mark Australasian Legal Business ISSUE 9.09
IP specialist firm of the year 2011 Let us guide you through the global IP landscape Contact the leaders in intellectual property, Griffith Hack. Melbourne (+61) 3 9243 8300 Sydney (+61) 2 9925 5900 Perth (+61) 8 9213 8300 Brisbane (+61) 7 3221 7200 www.griffithhack.com.au
feature | Intellectual property >>
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counterfeiters and free access to patented inventions for researchers. The changes to patents and trademarks are central to the reforms envisaged by the Bill. “The main drivers behind the changes proposed in the Bill are calls to tighten up the requirements for getting patents granted in Australia bringing them more into line with requirements in Europe and the United States,” explains Webber. “ Increasing the disclosure requirements you have to provide in patent specifications is another aim of the Bill. There are also a number of specific changes to address cumbersome administrative requirements, speeding up the processing of patent grants and dealing with any oppositions in a more streamlined manner.” Similarly, the Bill aims to streamline the trademarks process and particularly reduce the likelihood of protracted opposition proceedings. The changes to Australian law accompany corresponding changes in the United States, with the America Invents Act – previously known as the Patent Reform Act - passing the House of Representatives in June. “The likelihood of the passage of [both the United States and Australian Bills] will have a significant impact on patent applicants and the practice for patent attorneys in both countries for years to come,” says Lunn. “The driver for many of the changes in the legislation in both countries is the desire for further harmonisation of IP laws between countries. The danger remains that as different countries seek to harmonise at the same time that they actually achieve the opposite of what they hope.” Webber is expecting the Australian Bill to have a smooth passage into law. “The legislation is largely supported by industry practitioners and IP Australia itself,” he says. “There are certainly some aspects where there might be disagreements between the parties but at the moment it looks like it’s moving through quite quickly. The Bill may well commence into law in January 2012.” ALB Australasian Legal Business ISSUE 9.09
profile | managing partner >>
ALB 2011 MANAGING PARTNER SERIES
Gavin Vallely, Holman Fenwick Willan:
From cradle to grave As Holman Fenwick celebrates the opening of its Perth office, managing partner Gavin Vallely shares his thoughts on the firm’s Australian journey
C
lients apparently love Holman Fenwick Willan – even on the other side of the table, according to managing partner Gavin Vallely. It’s an odd compliment, but it does make sense. “We often find ourselves in the situation where clients would actually prefer to see us on the other side of a transaction as well because they want a firm that has the experience,” says Vallely. “They prefer to have us as an opponent, because they’re confident that the matter will ►► Holman Fenwick Willan – quick facts
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Partners
130 worldwide
Lawyers
250+ worldwide
Offices
13
Revenues
£112.5m (FY2011, 13% growth)
Revenue derived outside UK
45%
Australian offices
Melbourne, Perth, Sydney
be dealt with sensibly and fairly. We solve conflicts constructively and, by and large, clients respect us for that. In fact in a recent commercial transaction we had clients wanting us to do everything. In the unwinding of a financial transaction the bank wanted us to undertake work for the bank while the borrower wanted us to act for them as well!” These days HFW has diversified beyond its traditional shipping roots and now places a strong emphasis on its expertise in “cradle to grave” operations in what might broadly be described as the commodities sector. “We are involved in every stage finding the product, extracting and producing the product, selling the product, moving the product, delivering the product and storing the product,” says Vallely. “A key distinguishing feature between us and other firms servicing clients is that no other firm has the breadth of experience and depth of resources we have both in Australia and internationally.”
Australian entry
Just as Baker & McKenzie are entitled to feel a little miffed at suggestions that the internationalisation of the Australian market is a new trend (Bakers have been here since 1964), HFW may also beg to differ with any suggestion that the British invasion began with Norton Rose and Allen & Overy in 2009 – HFW arrived in Australia three years earlier in 2006. Nor is Vallely convinced that the Magic Circle model of taking over local firms is the right formula for success. “One of the major challenges for the firms newly arrived in Australia and targeting project and finance work is that this area of the local legal market is mature with a number of firms having significant experience and already providing a high quality service,” he says. “As a result there may be a challenge in distinguishing the service offering of a rebadged local firm; especially if it is going to be more expensive than an Australian firm offering similar services. We Australasian Legal Business ISSUE 9.09
profile | managing partner >>
www.legalbusinessonline.com
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profile | managing partner >>
are hearing clients clearly saying that rebadged local firms do not necessarily satisfy what they are looking for in an international firm.” It is interesting to note that when HFW decided to enter the Australian market, the first destination of choice was Melbourne. “Melbourne is the largest commodities trading and bulk chartering centre in the Southern hemisphere,” says Vallely. “Many of the partners now at HFW had been servicing these sectors for more than 20 years at the time of the establishment of the Melbourne office and were well known internationally.” As a consequence, much of the work generated by the Melbourne office did not have any geographical nexus with Melbourne or Victoria in a practical sense, other than several major energy, mining and agricultural companies having their corporate headquarters in Melbourne. “Accordingly, the skill sets, experience and client base of the Melbourne office resulted in it servicing national and international work and, indeed, this remains the case,” says Vallely. The Melbourne office was soon followed by a Sydney presence and, in June this year, a Perth office. “From the moment we entered the Australian market in 2006, establishing a Perth office had been part of the regional strategy. We had already been servicing clients in Perth and Western Australia for many years,” says Vallely. “Existing clients in the offshore energy, mining and agricultural sectors based in Perth had been indicating for some time that if HFW were to establish an office in Perth we would have their support.” Vallely admits the Perth market was a difficult place to establish a presence. “At an operational level, it was a challenge to locate office premises
which met our requirements,” he says. “Office premises for professional service firms in the Perth CBD remain at a premium. However, once we were able to secure our premises, we were able to progress very quickly.” The firm had already earmarked existing partners, Hazel Brewer and James Donoghue, for roles in the Perth office as well as exCorrs Perth managing partner Julian Sher. “The Perth office will harness our growing presence in the energy, natural resources and agricultural sectors which continue to undergo substantial growth in Australian and the wider Asia-Pacific region,” says Vallely.
Ports and the resources boom
Australia has a shortage of port capacity and if the difficulties with the troubled Oakajee project in Western Australia is anything to go by, the solution may lie some distance in the future. Port terminal development and associated supply services are core practice areas at HFW and Vallely has been keeping a close eye on the issue. “The increase of Australia’s export capacity through port expansion and supporting inland transport infrastructure is essential to our future prosperity,” he says. “However, the legal, political and environmental issues that need to be worked through in many instances make the process more complicated and time consuming than is the case relative to existing or potential competitors operating in other jurisdictions. We have to be careful not to lose the competitive advantage we have through proximity to our major markets and the quality of our product by failing to address our supply chain issues.” Quite simply, it’s a case of making hay while the sun shines and Vallely says that Australia has had a patchy performance to date. “An example of
how we were unable to maximise the opportunities presented during the boom prior to the GFC is presented by the vessel queues at the East coast coal ports where waiting time to load was regularly 40 days,” he says. “In addition to incurring substantial demurrage costs which comes straight off the bottom line for our exporters, port congestion impeded our capacity to export product at record prices so the financial impact was twofold in terms of increased cost and reduced throughput.” However, he notes that port congestion in Western Australia is a little different from the East coast in that it is largely a product of new entrants requiring access to rail and port infrastructure to ship product from new or expanded mines. A major question for firms such as HFW is the extent to which the current global economic uncertainty is going to impact on the Australian resources boom. Like many lawyers with clients in the resources industry, Vallely says that most of the projects he has seen are of a long term nature and he has not seen any evidence of projects or expansions being cancelled. “However, it is conceivable that the position will change if we enter a “double-dip” recession as is being forecast by several analysts,” he concedes. It will be interesting to see what the impact will be on resources M&A. “With regard to acquisitions, should there be a significant “correction” in commodities prices with or without a “double-dip” recession, it is likely that we will see some of the large energy and mining companies, including those from China and India, taking advantage of the volatility to acquire quality assets from companies that are in need of cashflow to service debt as credit remains tight,” predicts Vallely. ALB
“The increase of Australia’s export capacity through port expansion and supporting inland transport infrastructure is essential to our future prosperity”
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Gavin Vallely
Holman Fenwick Willan
Australasian Legal Business ISSUE 9.09
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