Trends in the Legal Market: The Challenge for Challenger Firms – Germany

In recent years, a noticeable trend has emerged in the legal market. The relationships between elite firms and their clients have become increasingly robust, creating a level of resilience that challenger firms previously targeted to gain market share. The buzz in the market indicates the gap between elite firms and challenger firms is increasing. The problem for challenger firms is that they are not able to match the scale, deal sheet, or institutional relationships that elite firms possess to maintain client relationships across their global platforms. The adage “nobody gets fired for instructing [insert elite firm name]” holds true in this context.

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Bridging the Gap: What It Takes to Compete

To make a significant impact on this trend and compete effectively with elite firms, challenger firms need to focus on several key areas:

1.????? Rock-Solid Client Relationships in the Home City:?Building and maintaining strong client relationships in their home city is crucial. Firms must ensure that their local presence is strong and that clients have confidence and trust in them to fulfil their legal obligations.

2.????? Credible Teams in Key Legal Hubs:?The scale and credibility of the team in key legal hubs are essential. Challenger firms must invest in building teams that are not only skilled but also capable of handling complex legal?matters, hence credible to their clients.

3.????? Hiring Motivated Lateral Partners/Teams:?It is vital to bring on board lateral partners or teams who not only own their deal sheet but are also genuinely motivated to expand it. These individuals should have a proven track record and drive to grow the firm's business.

4.????? Sustained Growth Efforts:?Growth should never be viewed as a one-time effort. Challenger firms need to stay in the market, continuously seeking opportunities and keeping the door open for new business. Persistent efforts and a long-term growth strategy are key to gaining a foothold in the competitive legal market.

There have been several moves in the past 6 months that showcase this – see some select moves below:

Willkie Farr & Gallagher

·?????? Rüdiger Lahme?and?Andreas Ruster?joined from Quinn Emanuel Urquhart & Sullivan in Hamburg.

·?????? David Huthmacher?joined from Hogan Lovells to boost their Munich office after having joined Hogan Lovells from Kirkland & Ellis in November.

Kirkland & Ellis

·?????? Tobias Larisch?joined from Latham & Watkins to open their Frankfurt office.

·?????? Sebastian Pitz?joined from White & Case, Frankfurt.

Skadden

·?????? Matthias Schudlo?joined from Willkie Farr & Gallagher in Frankfurt

Eversheds Sutherland

·?????? David Smith?joined from White and Case, Frankfurt

·?????? Matthias Kiesewetter?joined from White and Case, Hamburg

In conclusion, for challenger firms to bridge the gap and compete with elite firms, they must focus on strengthening client relationships, building credible teams, hiring motivated partners, and maintaining a sustained growth strategy. Only by addressing these areas can they hope to make a noticeable impact in the ever-evolving legal market.

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