A Globalized National Law Firm
Dimitry Afanasiev
Chairman,
Egorov Puginsky Afanasiev & Partners
Global Top-100
Among the global top-100
law firms:
•
75 from the USA
•
17 from Great Britain
•
4 from Australia
•
1 from Canada,
France, Spain and Holland
Прибыль
Total Income
The total income of the top-100 law firms in 2007
$67.4 bln
Leaders are Clifford Chance ($2.2 bln) and Linklaters
($2.1 bln).
Source: The American Lawyer
Income per Partner
Average income per partner in leading global law firms
(Linklaters, Slaughter and May, Wiley Rein):
$1.3+ mln
A year income of the best lawyers in the City
$4+ mln
Globalization of the Legal Business
In 2007 the leading 250 law firms in the United States had
15 000 +
lawyers in their abroad offices.
Globalization “Activists”
The most “globalized” law firm in the world is
Baker & McKenzie
with abroad staff of
3 335 lawyers
or 81% of all lawyers working in the firm
Anglo-American Dominance in the Legal Market
1. Transnational companies reign the world economy;
2. They are listed at the stock exchanges in New-York and
London, use English in documentation under the
American or British jurisdiction;
3. “Legal magnetism” of the UK courts;
4. Leading role of the USA and American legal system in
shaping international legal framework;
5. Cultural and historic reasons.
Why Business Goes Offshore?
1.Impractical laws
2.Inefficient courts
Judicial Reform
1. Promote prestige of
being a judge and
provide adequate pay
for judges;
2. Ensure the inevitability,
not severity of
punishment;
3. Bring in a fresh
generation of personnel.
Geography of Russian Assets Abroad
52%
22%
11%
6%
CIS
North America
CEE
Western
Europe
3%
4%
2%
Latin America
Asia & Australia
Africa
Total assets value: $ 59 bln.
Total number of subsidiaries and branches: 630
Source: NTV, Segodnya, 24 Feb. 2008
TOP-10 Russian Acquisitions Abroad in 2006-2007
Value,
$ mln
№
Year
1.
2006
SUAL and aluminum assets
of Glencore
Global
Russian Aluminum
30 000
2.
2007
LionOre
Canada
Norilsk Nickel
5 300
3.
2006
Oregon Steel Mills
USA
Evraz Group
2 300
4
2007
Sulzer
Switzerland
Renova Group
1 700
5
2007
Strabag
Austria
Basic Element
1 628
6
2007
Magna International
Canada
Basic Element
1 500
7
2007
Hediard
France
Luxadvor
1 200
8
2007
Energetic Source SPA
Italy
Renova Group
1 200
9.
2006
Duferco
Global
Steel Invest &
Finance S.A. (NLMK)
805
10
2007
Highveld
South Africa
Evraz Group
700
Target
Source: M&A-Intelligence Group of Mergers & Acquisitions magazine, Russia "
Place
Buyer
Main Impediments
1) Lack of long-term low-cost capital
funding from within Russia;
2) Lack of international M&A
experience at any corporate level
in Russia except at the very top;
3) Cross-cultural difficulties;
4) Russia’s image abroad;
5) Lack of established network of key
players: counsel, investment
banker, PR adviser, accountant,
as well as personal networks in
the target industries.
How to Win the Battle
1.Learn the target market.
2.Let the target market learn about you.
3.Start the learning curve early on the
regulatory issues.
4.Expect to play the local game.
5.Choose the right people.
Work in Coalitions: Best + Best
- Italy: Bonelli Erede
Pappalardo
- France: Bredin Prat
- Austria: Schönherr
- Great Britain: Slaughter
and May
- Netherlands: De Brauw
- Spain: Uría Menéndez
Blackstone Westbroek
- USA: Wachtell Lipton
- Germany: Hengeler Mueller
- Sweden and Scandinavia:
Mannheimer Swartling
- Russia: Egorov Puginsky
Afanasiev & Partners
The Best Friends Network: Who We Are
1. Leading independent firms;
2. Not a fixed group, no exclusive
arrangements;
3. Firms with a common purpose
and focus:
•
quality
•
culture
4. Establish integrated teams of
lawyers to provide a seamless
cross-border service.
Role of the Local Counsel in the Integrated Team
1. Advising client in negotiations;
2. Coordination of the integrated
team of foreign advisers
(best+best)
3. Due diligence of local assets;
4. Antitrust clearance;
5. Legal advise of issues subjected
to the home jurisdiction (i.e.
labor issues);
6. GR: Relations with federal and
local authorities, municipalities.
Our Experience
2006: Advising global top-3 aluminium producer RUSAL on its USD 30 bln merger with SUAL
of Russia and Glencore of Switzerland creating United Company RUSAL.
EPA&P + Ashurst (UK)
2007: Advised Basic Element, a major investment group in Russia, on the acquisition of a 30
percent stake in STRABAG, European leader in construction, in a 1.2 bln Euros deal.
EPA&P + Bryan Cave (USA), Schoenherr (Austria)
2007: Advised on acquisition of shares in German leader in construction Hochtief.
EPA&P + Gleiss Lutz (Germany)
2007: Advised RM Systems, a major Russian automotive holding owning GAZ Group, on the
USD 1,53 bln private equity deal for the shares of NYSE-listed Magna International, the
world's leading auto components manufacturer.
EPA&P + Cravath (USA)
2008: Advised UC RUSAL on a recently announced acquisition of strategic stake in Norilsk
Nickel from ONEXIM Group.
EPA&P + Ashurst (UK)