Baker & McKenzie is the top brand in the global legal services market, according to a new study – but a host of firms including King & Wood Mallesons, DLA Piper, Norton Rose and K&L Gates are on the rise.

The Acritas Sharplegal  Global Elite Brand Index was based on responses from 815 senior general counsel in multinationals with revenues of $1 billion and over. The surveys, which were conducted in the local language across 55 countries, asked the respondents to comment on which firms “first came to mind”, which firms respondents were most favorably disposed towards and which firms were most likely to be considered for cross-border deals and litigation. 70 Australians were involved in this year’s survey.

A key finding of the study was the rise of “challenger” brands at the expense of the incumbent elite. The firms which have recorded the strongest increases on the index over the past four years were Gibson Dunn, Kirkland & Ellis, DLA Piper, King & Wood Mallesons and K&L Gates; the latter three are well known for their aggressive expansion policies. By contrast, the performances of Magic Circle firms Clifford Chance, Slaughter and May and Skadden  on the index declined by a level proportionate to the increase by the challengers.

CMS, Dentons, Latham & Watkins, Norton Rose Fulbright and Reed Smith were also mentioned as firms which had consistently improved their standing on the index over the past four years.

Honeymoon period?

It is clear that firms who have engaged in mergers are enjoying an uplift in their market perception. “There’s quite a bit of evidence in the research that pointed to the fact that when firms do merge; particularly when [the merger is] new and different, for example King & Wood Mallesons, if they get it right and they do the right level of communication with the market and positioning the brand correctly, then they can get a significant uplift in terms of them being spoken about in the market,” said Sarah Chisman-Duffy, Acritas head of Asia Pacific.

The question is whether this momentum can be sustained and whether the survey results are reflecting a temporary honeymoon period rather than a permanent market shift. “It’s for the firms to get out of the honeymoon period and make sure they continue to leverage the great resonance they got in the market at the time of merger,” said Chisman-Duffy, adding that it was too early to make any predictions in this context.

One notable absence from the top 20 is Ashurst, although the firm had enjoyed a lift in the 2012 survey. “With the recent vote on financial integration, it will be interesting to see how that progresses going forward,” said Chisman-Duffy.