| A recent trend has emerged, snowballed, and recently gathered the momentum of a blizzard in the legal world.
Although globalisation is not a new phenomenon, traditional boundaries and goal posts are being moved by many of the well-known US and UK law firms who were previously satisfied to expand by setting up offices overseas. No longer content with merely establishing a footprint for themselves in overseas markets, many notable practices are merging/combining their efforts with other firms or absorbing their slightly smaller rivals in a bid to solidify and augment the original practice. This has been done in a variety of ways; by using a joint venture vehicle, by creating a special, collaborative relationship that is client orientated or by simply acquiring a smaller practice. We have seen this for example with Clyde & Co’s recent merger with Barlow, Lyde & Gilbert, and the combined business of UK based Ashurst and Australian based Blake Dawson going forward, with a merger slated for 2014. Watson Farley & Williams have established a joint law venture with Asia Practice LLP in Singapore which is to be launched this week and Dorsey & Whitney LLP recently created a Special Relationship with local Shanghai firm Martin Hu & Partners. The advantages to merging are tremendous. Bilingual/trilingual capabilities, cultural sensitivities, access to a greater client list, access to greater resources, expanded rights of audience for litigators, increased specialist expertise etc. For international firm Ashurst, based in the UK, it has historically built its offices from the ground up, implementing a conservative model of organic growth. However, according to Ashurst’s Head of Asia, Geoffrey Green, based in Hong Kong, “such an approach would not have allowed the firm to realise its ambitions for growth in the fast changing Asia markets.” According to Green, Blake Dawson have uniquely reshaped their practice to fit an internationalised business model which “brings access to English and New York law, the two pre-dominant legal systems in the world of international transactions”. Green goes on to explain that the issue Australian firms face is that as soon as they seek to compete in the international markets, they need the backing of a UK or a US law firm to be effective, particularly in the financial sector. The Ashurst/Blake Dawson combination – will provide a symbiotic platform upon which Blake Dawson “will gain English and US lawyers and access to an international platform and Ashurst will benefit from strengthening the firm’s established position in the energy and resources field and gaining a greater depth of resource for the Asia market.” |
