As the industry enters the New Year with a renewed sense of optimism, ALB singles out ten firms that are set to have a big 2010. Reasons for including some firms (such as the newly merged Norton Rose) are obvious, while the inclusion of other names on the list might be more surprising. Yet all these firms are equally capable of distinguishing themselves through their own unique brand, philosophy and plans for growth.
Gilbert + Tobin
Managing Partner: Danny Gilbert
Offices: Melbourne, Sydney
What's Danny Gilbert plotting for 2010?
By his own admission, Gilbert + Tobin’s managing partner always has something on the boil. Latest plans are a new Melbourne office – the firm’s first outside of Sydney - and the snaring of prize M&A partner Peter Cook from Mallesons. G+T will no doubt be looking to grow its revenues by more than the modest 2% it achieved in 2009. It will also be interesting to see if the firm manages to lure across more high-profile partners to join the likes of Cook and banking & finance high-flyer John Schembri. As all firms undergo wholesale renewal from time to time, could this be the start of a new chapter for G+T as it enters its 22nd year?
Choy Lawyers
Principal: Trevor Choy
Offices: Melbourne
This small Melbourne-based IP firm has a fresh approach, accepting new clients only if they have been referred by an existing client or acquaintance
Choy Lawyers’ referral-only model is only one half of a radical new client strategy. In line with Pareto’s Principle, also known as the “80-20 rule”, the firm has also trimmed its client base in order to focus more closely on its valued clients. Principal Trevor Choy is adamant that the firm is better off without clients who are difficult to work with, do not give adequate instructions or set unnecessary deadlines. He notes that most clients with these behaviours were non-referral clients – a fact which suggests that the referral rule will lead to a better-quality client base. This bold new approach has taken over twelve months to implement with the final elements expected to come together early in 2010. Clients the firm doesn’t want to retain have been informed and offered assistance with finding an alternative legal adviser – and rival firms have apparently been rolling out the welcome mat. It’s a strategy which will see Choy Lawyers grow through its existing core relationships, but growth for the sake of growth is not the firm’s priority. Choy prefers not to formulate his goals in terms of revenue-growth targets. The quality and strength of the firm’s client base is ultimately how its success will be measured in 2010.
Integrated Legal Holdings
Managing director: Graeme Fowler
Offices: Melbourne, Perth, Sydney (separately branded)
This listed firm made some key acquisitions in 2009 – and it’s on the lookout for more partner firms in 2010
ILH was named the fastest-growing firm in Australia in December’s ALB Fast 10 list, with 59% revenue growth. This listed company has the unconventional strategy of acquiring law firms and continuing to operate them under their existing branding, which will continue in 2010. Managing director Graeme Fowler plans to recruit 15 to 20 medium-sized firms to the group over the next few years and there is no reason why ILH cannot continue to grow at 2009 levels if favourable economic conditions continue. Along with its fellow listed-firm Slater & Gordon, ILH is fundamentally reshaping the Australian legal industry in the small-to-medium size sector. Love them or loathe them, you can’t ignore them.
Griffith Hack
Chairman: Tony Ward
Offices: Melbourne, Perth, Sydney
Chairman Tony Ward is on a mission to transform his firm into the premier name in the IP space, with 2010 shaping up as a pivotal year
Already a well-established name in the patent and trademarks space, Griffith Hack has ambitions to build a national integrated IP legal practice and has been making solid progress. Griffith Hack’s law practice grew by 30% last year and is tracking towards a similar result in 2010. The firm is expecting to establish a law practice in Perth this year, with Brisbane to follow in the medium term. Chairman Tony Ward says that IP is increasingly being recognised as a boutique space and that Griffith Hack has found it easier to attract top talent in recent years. He notes that the firm’s unique advantage is the capacity to provide patents and trademark attorneys in addition to legal advice, which is a complementary offering not covered off by most other firms.
M+K Lawyers
Managing director: Damian Paul
Offices: Melbourne, Dandenong, Sydney
Will the M+K juggernaut continue in 2010?
ALB Fast 10 firm M+K recorded 25% revenue growth in 2007, 20% growth in 2008 and 21% growth in 2009. Subject to economic vicissitudes, the firm is likely to record up to 30% growth in 2010. That’s organic growth – and M+K also has a couple of mergers in the pipeline which could see its final growth figures exceed 40% this year. Managing director Damian Paul attributes the firm’s success to the strength of M+K’s 2, 000-strong client base and its capacity to refer work with confidence within the firm. While he isn’t divulging details of the mergers just yet, Paul expects M+K to enter two new Australian states this year.
There have been rumours of plans to float the firm, yet while Paul says that M+K is structured to take into account this contingency, the firm does not need to raise funds and definitely has no plans to do so in the medium term.
Kensington Swan
Managing partner: Quentin Lowcay (Abu Dhabi)
Offices: Auckland, Wellington, Abu Dhabi
Kensington Swan is is breaking new ground in Abu Dhabi, and observers in New Zealand and Australia alike will be watching closely
Kensington Swan has been building relationships in the Gulf for over five years, but in December they took the plunge and opened an office in Abu Dhabi, catering for locally-based, New Zealand and Australian companies looking to set up business in the Gulf region. Companies looking to attract direct foreign investment out of the Gulf region and the government sector are also being targeted, as this last sector has long been a Kensington Swan specialty. It’s an intriguing move, particularly coming from a New Zealand firm. It is the Australian firms which are usually in geographical expansion mode, yet Australians have generally eschewed the Gulf for proximity reasons. Colin Biggers & Paisley is believed to be the only other Australian/NZ firm to have a partner permanently on the ground in the region – and that firm also has a joint venture operation in Dubai with local firm Lutfi & Co. The Kensington Swan model, based on the competitive advantage of a NZ-dollar cost base and the capacity to provide quality advice in areas traditionally neglected by global firms, is one to watch.
Jones Day
Partner-in-charge: Chris Ahern
Offices: Global partnership
Look out – Jones Day is one of several international firms seeing 2010 as the year to crack the Australian market
The four-partner Sydney office of global firm Jones Day is expected to triple in size over the next three years as it expands to a full-service offering. However, partner-in-charge Chris Ahern says that size is not the objective and that the firm will bide its time if necessary in its search for top-quality talent. Smaller size and lack of depth are frequently cited as obstacles to taking on the Australian top-tier, but Ahern points out that this has not stopped global firms from winning clients from local firms in other key markets. Indeed, relative lack of scale hasn’t been an obstacle for Australian firms in Asia. Jones Day’s Australian offering is expected to replicate its key global strengths, including IP, M&A and competition law. Ex-Freehills partner Philip Hoser joined the firm in 2009 to enhance another key practice area, insolvency & restructuring. Meanwhile, other international firms have also been active in Australia. Shipping specialist Holman Fenwick opened a Sydney office last year and US-based Dorsey & Whitney also established itself ‘down under’.
Balance Legal
Managing director: Ken Jagger
Offices: Perth, Melbourne
Balance Legal’s secondment-only model is proving popular – after 18 months in business the firm has already opened a second office
Balance Legal didn’t make the 2009 ALB Fast 10 because it had not been in operation long enough to supply the revenue figures for the requisite periods. Yet the figures which Balance Legal could furnish clearly mark it as a firm on the rise. The firm has grown from three to 20 lawyers over the past 18 months, and was tracking at over 200% revenue growth for the first quarter of 2010, albeit from a modest base. At the heart of this growth is Balance’s unique secondment-only model, where lawyers are placed with clients for a fixed period. Managing director Ken Jagger says that the model is not intended to displace traditional in-house lawyers or law firms, but rather to provide a cost-effective augmentation in situations where there is a spike in work or an unexpected shortfall in resources. By his own admission, Jagger is surprised at how quickly clients have warmed to the idea. Balance Legal was able to open its second office in Melbourne in September 2009, nearly two years ahead of the managing director’s most optimistic plans. And while he doesn’t have confirmed plans for any new offices, Jagger says that a Sydney or Brisbane office isn’t out of the question.
Marque Lawyers
Managing director: Michael Bradley
Offices: Sydney
Marque Lawyers has become the standard bearer for those advocating a fresh approach to billing. Will this fledgling firm be able to continue the momentum in 2010?
Michael Bradley is still a bit miffed that he wasn’t named as one of Australia’s hottest lawyers in last year’s ALB Hot 40 feature, but luckily he agreed to speak with us for this article. Marque Lawyers opened its doors in August 2008 and has experienced remarkable growth in its short lifespan, growing from four to seven partners and adding 12 lawyers to its original five lawyer base. All of this occurred at the height of the GFC and Bradley describes it as “exceeding wildest expectations.” Much of the growth has come from direct referrals from existing clients and industry contacts. Bradley believes that this support has been a response to Marque’s innovative billing concepts and a “longstanding, deep-seated frustration” in the market at traditional hourly-based legal billing. Alternative billing arrangements are not unique to Marque, but Bradley says even firms which would like to pursue alternative systems face fundamental constraints. “In those firms, each individual in the firm is accountable for every hour of their day. The billable hour is culturally embedded and a fundamental part of the business model.” Bradley is looking to consolidate in 2010 and says that he’s keen for Marque Lawyers to “continue to be as annoying as we have been in the past.”
Norton Rose
Managing Partner (Australia): Don Boyd
Offices: Global presence
A big year lies ahead for the firm formerly known as Deacons. However, the first step in coming to terms with the new world order will be to become accustomed to the new name
2010 will see Norton Rose Australia pursue what it calls a “headlight strategy” which involves focussing on five areas: financial institutions, energy, infrastructure, transport and technology. Managing partner Don Boyd says that the firm will be looking to recruit and consolidate its talent in those areas. It is unclear what will happen to specialisations outside the “headlights”, with Boyd saying that resources will be directed as a priority to the headlight areas. Boyd says that full financial integration of Deacons and Norton Rose is about “18 to 24 months away” and that the complexity of the transition to limited liability status was proving to be challenging. However, a unified board is already in place and three of the twelve members are Australians. The managing partner is a firm believer that the global legal services market is consolidating, and compares the situation to Australia in the 1980s, when client demand led to formation of large national firms. “As time goes on, there will fewer opportunities left [for mergers],” he says. Should we expect to see more international mergers this year? “It may not play out in the short term, but it’s the right thing for all large Australian firms,” says Boyd. “However, it’s not an easy thing to achieve – it took us three years from making a strategic decision to actually making it happen.”