France > Legal market overview
Following two years of restructuring, employment and litigation work being the main drivers of business for law firms, 2010 was in comparison a ‘millésime’. M&A activity, though still short of peak levels, is growing steadily and there were enough deals to keep the major players busy, while LBO and property transactions are returning after a two year drought. Projects and energy are booming areas, and firms continued to invest in these fields, with Willkie Farr & Gallagher LLP making the biggest move after recruiting one of the top teams previously at Freshfields Bruckhaus Deringer LLP.
This was a year of strategic change for many law firms. Partner moves reached record levels and a significant number of internal partners and counsel were also appointed. Anglo-Saxon firms such as DLA Piper, Jones Day, Mayer Brown and Weil, Gotshal & Manges led the recruitment spree, with most new hires concentrated in the fields of IP, litigation and tax, coinciding with the implementation of tough rules on tax evasion in France.
Hogan Lovells (Paris) LLP’s merger created a prominent new player in the market with some 150 lawyers in France. Lefèvre Pelletier & associés’ spin-off was another major event, resulting in the French firm losing numerous key figures to new entrant Wragge & Co, Salans and new French firm Quadrige. Canadian firm Heenan Blaikie, which opened a small outpost in Paris in 2010, raided Norton Rose LLP in 2011 to hire around ten lawyers led by Jean-François Mercadier and including Pascale Gallien and Anne-Sylvie Vassenaix-Paxton.
The largest Anglo-Saxon firms were hardest hit by the financial downturn but they are back on their feet after downsizing significantly in 2009. These firms posted positive results for 2010 and have rediscovered an appetite for growth.
The leading UK magic circle firms Allen & Overy LLP, Clifford Chance, Freshfields Bruckhaus Deringer LLP and Linklaters LLP continue to feature at the summit while US rivals Cleary Gottlieb Steen & Hamilton LLP, Sullivan & Cromwell LLP, Weil, Gotshal & Manges, White & Case LLP and Willkie Farr & Gallagher LLP have strong reputations in the market.
French firms Bredin Prat, Darrois Villey Maillot Brochier, De Pardieu Brocas Maffei and the international firm Gide Loyrette Nouel A.A.R.P.I. emerged from the financial crisis in strong health and remain the top French firms.
The market also contains a number of dynamic mid-sized and boutique firms, some of which compete directly with the large market leaders.
New entrants have been a feature of the French market over the past decade and this continued in 2011 with the launch of Hoyng Monegier LLP. This trend was epitomised by the launch of Altana at the end of 2009 by 12 high-profile partners from Salans and Proskauer. It signified a new generation of lawyers searching for greater independence and flexibility in their careers. Clients are receptive to this entrepreneurial business model, which could potentially have a long-term impact on the market.