Ireland’s biggest firms appeared on the shortlist for the Irish Firm of the Year category at The Lawyer European Awards, each showcasing their differing strategies and visions in what turned out to be a record year for many.
With previous winners including A&L Goodbody, Arthur Cox and Matheson, 2016 turned out to be McCann FitzGerald’s year. A raft of strategic changes saw the finance heavyweight pick up plaudits from the judges and take home the winner’s trophy.
Arthur Cox still rated top for revenue
The same group of Irish firms appear in The Lawyer’s European 100 this year as in previous years and, also as in previous years, only Mason Hayes & Curran has provided any revenue data.
That firm says turnover rose by 20 per cent between 2014 and 2015, to €72m (£82m).
On that basis, and given sizeable headcount growth across the market, we have estimated revenue increases for all Irish firms last year.
Arthur Cox remains the firm with the highest estimated revenue, at €134m, just ahead of A&L Goodbody.
Combined, we estimate that the seven Irish European 100 firms brought in income of €707.2m in 2015, up 10.5 per cent from €660m the previous year.
The Irish market is also extremely reticent to provide any detail on its partnership structures. Only McCann FitzGerald, proudly all-equity, gives its equity partner numbers and most are reluctant to provide much detail on their remuneration structures.
Revenue per lawyer (RPL) and revenue per partner (RPP) figures appear to be high in Ireland. RPL ranged from an estimated €344,000 at William Fry to €533,000 at McCann FitzGerald, while RPP ranged from an estimated €867 at Dillon Eustace – with the lowest leverage of the group – to €1.72m at McCann FitzGerald.
One area where the Irish market does stand out from European peers is diversity. Female partner proportions range from 29 per cent at Arthur Cox and McCann FitzGerald to 39.2 per cent at William Fry.
A&L Goodbody
A&L Goodbody was named Firm of the Year: Republic of Ireland in both 2014 and 2015, and scooped European Firm of the Year in 2015 as well.
The past year was another good one for A&L. While, like most of the Irish market, the firm does not provide financial information, managing partner Julian Yarr says 2015 was strong. Headcount continued to rise, with total staff numbers now above 700, and both lawyer and fee-earner numbers went up by almost 4 per cent between 2014 and 2015.
The year saw A&L continue to focus on its ongoing strategic development. The firm’s vision is centred on clients, people and business transformation, and the firm is aiming to sit at the top of the Irish market when it comes to work, particularly on the transactional front.
The firm’s strategy was extended by several initiatives during the year. It created a business transformation team, recruiting a business transformation manager and a business
of the Year 2015
financial analyst to work closely with the firm’s director of strategy and business transformation.
A&L also recruited a dedicated head of talent to develop and update its career progression programme.
Project management was another area where the firm made appointments. A&L hired 15 project managers and introduced specialist software to enhance client service delivery.
The firm has become a keen user of technology to enhance the way it works both internally and externally. Most recently it developed two tools in response to an increasing volume of information – a bids centre, which facilitates the production of bid documents and captures bid information; and a ‘Partner Connect’ tool which helps partners run their teams and engage with clients.
A&L is also seeking to improve its knowledge of – and perception in – the wider market. Last year it commissioned consultancy firm Saffron to undertake a client and market reputation survey to enhance its strategy.
Internationally, the firm is building on its secondment programme, which has now been underway with Chinese firms for five years, and is being rolled out to India and Germany.
Key deals
Pfizer/Allergan
A&L Goodbody partner Alan Casey was instructed alongside US firms Skadden Arps Slate Meagher & Flom, Wachtell Lipton Rosen & Katz and Morgan Lewis & Bockius as well as Clifford Chance on Pfizer’s $160bn (£111bn) mega-merger with Allergan. The deal collapsed in April 2016 after US government regulations hindered progress.
Perrigo/Mylan
Casey and fellow partner Cian McCourt (who has since joined Arthur Cox) worked alongside Wachtell as client, pharmaceutical company Perrigo, successfully defended itself against a hostile $29bn takeover offer from Mylan.
Project Arrow
A&L acted for the National Asset Management Agency (Nama) on the sale of around €7.6bn of non-performing loans to Cerberus, one of the last and largest loan portfolio sales in Ireland.
Arthur Cox
Turnover growth at Arthur Cox was estimated at around 7.5 per cent last year and the firm describes its performance as “robust”.
The firm continues to vie with rival A&L Goodbody for roles on the biggest M&A deals in the market, but like its competitors is also developing innovative streams to diversify its workflows. Notably, last year it introduced a cyber security practice group that brings together specialist lawyers from a range of practice areas such as compliance, data protection and litigation to advise on this fast-growing issue for clients.
Diversity was also a hot topic for Arthur Cox in 2015. The firm appointed partners Grainne Hennessy and Geoff Moore as diversity partners in a bid to bolster its commitment to equality and integration. The move helped Arthur Cox develop a cohesive diversity programme.
Like many Irish firms Arthur Cox was already doing well on the gender diversity front. Almost a third (29 per cent) of its partnership were female in 2015 and its Women in the Firm
initiative has been running for seven years. It is a member of women’s networks, runs a mentoring programme for female lawyers and has implemented maternity coaching throughout the firm.
In the past couple of years the diversity focus has expanded to LGBT issues, with the aim of developing initiatives to welcome diversity within the firm.
Training was another area of focus last year. The firm has enhanced the training it offers secretaries and support staff with modules including law firm finances and marketing that encompass areas such as due diligence and preparing electronic bibles and tracking documents.
Last year Arthur Cox also developed training programmes for associates and partners. It introduced its first senior associate leadership programme and a development programme for new partners, designed to accelerate the transition to partnership.
At trainee level Arthur Cox hired a new head for its trainee programme and increased the number of trainees it recruits from between 20 and 25 to between 35 and 40.
Arthur Cox is also investing in the future. Next year it will move into a new building, expanding its space from 8,000sq m to 11,000sq m, and it is implementing new technology systems in areas including client relationship management, practice management and risk management.
Key deals
Pfizer/Allergan
Opposite A&L Goodbody, Arthur Cox
corporate partner Geoff Moore worked with US firms Cleary Gottlieb Steen & Hamilton, Latham & Watkins and Weil Gotshal & Manges for Allergan on its proposed merger with Pfizer. The deal collapsed in April 2015.
CRH acquisition of Lafarge Tarmac and other assets
Arthur Cox partners Pádraig Ó Ríordáin, Brian O’Gorman, Maura McLaughlin, Fintan Clancy and Colin Rooney represented CRH on its acquisition of €6.5bn of assets, including Lafarge Tarmac, from Holcim and Lafarge ahead of their merger. The firm led a multi-
jurisdictional team of 11 firms from around the world on the sale, which completed in
July 2015.
Paddy Power/Betfair
Maura McLaughlin advised Paddy Power on its recently completed €7bn merger with Betfair, working together with Allen & Overy (A&O), which advised on competition issues. Paddy Power is a long-standing client.
McCann FitzGerald
In many ways 2015 was a transformative year for McCann FitzGerald. Like other Irish firms it does not provide financial information, but all the indications are that 2015/16 (the firm has an April year-end) continued a solid run for the firm.
In May 2015 McCann FitzGerald appointed corporate finance head Barry Devereux as managing partner. Devereux replaced John Cronin, who had been chairman of the firm for seven years. In making the leadership change the decision was taken to change the title of McCann FitzGerald’s boss, to better reflect the work the role entails. Cronin, meanwhile, has taken on a role as global law firm relations partner and is working to strengthen McCann FitzGerald’s partnerships with other independent firms worldwide.
of the Year 2016
The firm made a number of other leadership appointments, including rejigging practice group heads. More significantly, it hired Noel Carroll from PricewaterhouseCoopers to be McCann FitzGerald’s first chief information officer. Carroll will focus on significantly increasing the firm’s investment in technology. McCann FitzGerald also appointed a director of administration and operations and a learning and development manager, both roles newly created and designed to help the firm and its lawyers grow and expand.
Career development was a major focus for McCann FitzGerald in 2015. Previously, the firm had treated all non-partners more or less equally from a development perspective, but last year it launched a senior associate programme and introduced the title of senior associate for 5PQE lawyers and above. Senior associates have gained a presence on the firm’s website plus a tailored personal development programme, designed to develop their skills and financial awareness and their abilities in managing client relationships and junior lawyers.
Away from careers McCann FitzGerald carried out research last year to inform its strategy. That research, with more than 120 clients, has shaped vision and values for the firm, and helped in the development of an implementation roadmap, agreed by partners.
McCann FitzGerald is planning to invest in its brand, in new markets, new products such as e-discovery, and in technology.
In early 2016 it launched in New York after hiring Arthur Cox partner Gary McSharry.
Key deals
Allied Irish Banks capital reorganisation
McCann FitzGerald won a competitive tender in early 2015 to advise Allied Irish Banks on its capital reorganisation, which completed in December and saw the Irish government recoup €1.64bn in cash from the bank. The process included the conversion of shares held by the government into ordinary shares, the consolidation of ordinary shares, the redemption of a legacy promissory note and the issue of warrants.
IBRC litigation
The firm continues to advise the Irish Bank Resolution Corporation (IBRC), which is in special liquidation, on litigation related to its collapse. Notably, McCann FitzGerald is representing IBRC on litigation with the Quinn family, proceedings related to the organisation’s property portfolio and conspiracy proceedings before the Irish Commercial Court.
Sale of government stake in Aer Lingus
McCann FitzGerald acted as the adviser to state agency NewERA and a steering group established by the minister for transport, tourism and sport on the sale of the Irish state’s 25 per cent stake in airline Aer Lingus. The sale received parliamentary approval in May 2015 and was granted EU competition approval in July.
Matheson
Matheson’s focus in the past few years has been solidly on advising foreign companies doing business in Ireland. Around 80 per cent of its revenue is derived from this work, double that of a decade ago, and the firm says it now advises more than half the Fortune 100, seven out of the 10 top technology brands, “the majority” of the world’s largest banks and three of the top five global asset managers.
Managing partner Liam Quirke led the firm through its transition to this internationally focused strategy and last year Matheson elected financial services head Michael Jackson to replace him. Quirke, stepping down after 13 years, is now the firm’s chairman.
One of the ways Matheson has raised its profile in the work it is targeting is to be a player in helping to develop products. A recent example is its work in lobbying industry, the government and the Central Bank of Ireland to develop the Irish Collective Asset Management Vehicle (ICAV).
From an internally facing perspective, like many of its Irish competitors, last year saw Matheson look at the way it trains its lawyers and staff. The firm launched a masters in Legal Services Management in partnership with BPP University – the first course of its kind in Ireland. The programme focuses on four areas: technical competence; client-focus; leadership; and business awareness and acumen.
The course is run through lectures and online tutorials, and is aimed at newly qualified lawyers. It forms part of the firm’s career development programme which includes a senior associate course in partnership with the Judge Business School in Cambridge and a partner programme in collaboration with INSEAD.
Key deals
Actavis/Allergan
Matheson partners Patrick Spicer, George Brady, Shane Hogan and John Ryan advised Allergan on its $66bn acquisition by Actavis. The deal completed in March 2015 and later that year the company rebranded as Allergan plc. The company is headquartered in Ireland and listed in New York.
Willis/Towers Watson
Working alongside Weil Gotshal, Matheson acted for Willis on its $18bn merger with Towers Watson. Partners Tim Scanlon, George Brady, Shane Hogan and John Ryan led the firm’s work.
Shire/Dyax
Matheson advised US biotech firm Dyax on Irish tax matters relating to its $5.9bn sale to UK pharmaceutical giant Shire. The deal was announced in November 2015 and completed in January 2016. Sullivan & Cromwell was the lead US adviser to Dyax on the deal.
