The ratio between domestic and international law firms will balance out over the next 3 years, believes Ion Nestor, a senior partner with Nestor Nestor Diculescu Kingston Petersen (NNDKP), leader of the domestic law market.
Over the next three years, law firms might witness radical changes, as Nestor believes anything could happen to the firm he helps run.
"The market is permanently changing, and this will gather momentum in 2008. After achieving everything we plan to achieve, in three years' time we'll be open to any opportunity, either a sale to another firm, for instance, or increasing our regional presence by buying an office in Vienna," explains Nestor. However, he believes it can be difficult for a large domestic law firm to be bought, and international companies that enter the market will find it cheaper to simply recruit experienced lawyers.
Nestor highlights the fact that the domestic market is still dominated by Romanian firms and says the balance of power will not change for at least three years. "(...) There will be a balance between domestic firms and foreign ones when the market gains critical mass and international firms decide to turn their domestic offices into actual law firms. This could happen within three years".
At present, several international firms are looking at the Romanian market. White & Chase is one of the latest names to start recruiting for an office in Bucharest.
NNDKP lawyers started to get busy as early as the first month of this year, an unusual scenario for law firms that tend to "get into gear" as late as February along with the entire business environment.
The most important deals NNDKP was involved in last year include Petrom's repurchase of Petromservice for 328.5m euros, assistance provided to Ford in taking over Automobile Craiova and the consultancy provided to GTC for the sale of America House.
The real estate market and the M&A segment will prove interesting for the business environment and for law firms, too.
In 2007, NNDKP generated higher turnover year-on-year, namely 11.5m euros. "We reached and even exceeded our targets. After a meeting with partners, we realised the budgeted figures were conservative; so will be the figures budgeted for this year, which includes a 15% turnover increase," states Nestor.
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