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Most Popular Guides

The Rise Of The Big 4
20th September 2019 0
The Big 4’s (KPMG, Ernst & Young, Deloitte and PwC) traditional accounting services have become increasingly commoditised and less profitable. They\’ve experienced slower growth and face greater legal risks. In order to respond to this market shift the Big 4 have been fighting a constant battle over the last 30 years to become major players in the legal industry to diversify their business. Throughout the 1990’s the Big 5 (as […]
Read More...
The Yield Curve Inversion – Impact on the Legal Sector?
12th September 2019 3
Recently, you may have seen news reports paying considerable attention to the ‘yield curve inversion’. This metric was widely reported in the financial press as an inverted yield curve is considered by some economists to be a strong indicator of a forthcoming US recession. For example, according to the economist Campbell Harvey, an inversion of the curve has accurately forecast the last seven US recessions. In finance, where foreshadowing signals […]
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In May 2018, the General Data Protection Regulation (GDPR) came into force, radically changing the rules surrounding data protection and data privacy across the EU.⁣
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⁣Companies scrambled to comply with far more onerous rules related to how they collected, used and stored personal data.⁣
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⁣Before the legislation came into force, GDPR uncertainty led to a surge in demand for data advisory work. Medium-to-large corporates hired advisers and implemented systems to make sure they were following the rules, especially given the GDPR’s substantial penalties for noncompliance. Lawyers were there to help companies update their privacy policies, ensure they were processing data on a ‘lawful’ basis, and advise on the new rights that users have over their data.⁣
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Some law firms, like Herbert Smith Freehills and DLA Piper, even turned to technology to help clients comply with the GDPR in the event of particular data breaches.⁣
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The GDPR has meant data protection and cyber security issues apply across practice areas. Take Marriott International, for example, which is facing a £99.2m fine by the UK’s data regulator, the Information Commissioner’s Office (ICO). The ICO found that Marriott failed to carry out sufficient due diligence during its acquisition of Starwood Hotels. Following this case, lawyers may well place greater importance on cyber due diligence during M&A deals, as well as seek further contractual protections, to account for the increased risks of acquiring target companies with prior security incidents.⁣
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Finally, law firms must also comply with the GDPR. Let’s look at this in the context of the recent growth of legal tech tools within law firms. Thanks to the principles of ‘privacy by design’ and ‘privacy by default’, law firms must consider data privacy during the design stages (e.g. carry out a privacy impact assessment), as well as ensure privacy is the default standard for processing data, so only data that is needed to achieve a specific purpose is processed.

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Suppose I'm a recruiter for a global law firm.⁣⁣⁣
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If I’m going to invite you to interview, I need to know that you truly want to work at my firm - not just any commercial law firm.⁣⁣
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In your application form, if you write that you are applying to my firm because of its 'headlining deals', 'international work' and because 'you want to work with the best lawyers', that's not really telling me anything. How do I know that you want to work at my firm and not Clifford Chance, Baker McKenzie or Dentons?⁣⁣⁣
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It's no better if you say you want to work at my firm because we have '36 offices across 26 countries' or because of my firm's 'legal services centre in Belfast'. It's great that you know about my firm, but I already know those things. How does that get me any closer to knowing why you are applying?⁣⁣
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So you want to demonstrate that you understand a firm, but you also want to tell me why those things appeal to you. Do you have an international background? How does that link to your interest in my firm's global reach? Why does my firm's investment in a legal services centre matter to you?⁣⁣⁣
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Asking 'so what?' or 'why?' will help you to properly develop your answers.⁣⁣⁣
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If you can, try to also attend any events or open days from my firm. It's not necessary, but it helps to show me that you've gone out of your way to find out more about my firm. But, remember, the same point applies; don't simply list all the people you spoke to at the event, tell me what you learned and how that links to why you are applying.⁣⁣⁣
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Finally, a point about mentioning deals. Deals can work, but most of the time, I see candidates drop a deal into their answer in a way that doesn't get me closer to understanding why they are applying. If you want to mention a deal, try to think about how you can be specific and how the deal is tied to why you are applying.

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Suppose you run a private equity firm.⁣
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Your firm has recently formed a fund, which means you’ve raised money from a variety of investors and pooled it together.⁣
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The investors you’ve raised money from are called institutional investors. These are investors that manage huge amounts of money, often on behalf of others, such as pension funds and insurance companies.⁣
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It’s your job to return these investors with even more money after a period of time. Until that time, their money is pretty much locked up in your fund.⁣
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To return their money, you invest in private companies, particularly companies that you believe you can turn around for more money.⁣
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Once you identify a private company you want to buy, you’ll want to buy a controlling stake in that company. That means you buy over 50% of its shares so that you have control and influence over the company.⁣
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Quite often you like to use debt to buy these private companies. By using debt, you don’t have to put as much money in yourself to buy the company. It also means you can amplify the returns of your investment. If you use a high proportion of debt, we call this leverage. If you’re using leverage to buy a company, we call this a leveraged buyout.⁣
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You now have majority control over the company and it’s your job to add value. You might replace top employees, sell assets or give shares to management to incentivise them to run the business profitably. Your aim is to make sure you can sell the company for more money than you bought it for.
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After a period of time, you’ll be ready to sell the company. When you sell your shares, we call this an exit. You might sell the company to another company, another private equity firm, or even list the company on a stock exchange in an IPO.⁣ The return of your fund will be paid to the investors and you’ll be taking a cut. ⁣
Lawyers are there to advise you every step of the way, from raising the money to form a fund, to buying and selling companies. They’ll draft the documents, negotiate terms and help you to structure the various companies and vehicles.

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FINANCIAL TERMS - PART 2
We’re trying to explain the most relevant terms for aspiring commercial lawyers in interviews but let us know if there are any other terms you want us to cover - we’ll explain in the comments below! #law #lawfirm #trainingcontract #commerciallaw #commercialawareness #tclaterms #aspiringlawyer #aspiringsolicitors #financialmarket #financialterms #legal #lawstudent #lawschool #studytips #studynotes #lawyer

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Let me bring you up to speed on the trade war so far.⁣
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Donald Trump, unhappy with the US’s trading relationship with China, decided to impose a series of tariffs on an increasing number of Chinese imports. In turn, China has responded with its own set of retaliatory tariffs. This tit-for-tat escalation of tariffs is what we call a trade war.⁣
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China has long been criticised for unfair market practices, including forcing the transfer of technology from US to Chinese companies, stealing intellectual property and restricting access to its market.⁣
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Along with Trump’s concerns over the US-China trade deficit (the fact that the US imports from China far more than it exports to China), these are the ‘official reasons’ for the imposition of tariffs. However, it’s worth remembering that China is a threat to the US’s dominance on the world stage, especially in a future world of high tech and AI. There is every incentive to stem the growth of the world’s second-largest economy.⁣
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Impact on Businesses and Law Firms⁣
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It’s hard to measure the cost of the trade war. That’s because it’s not just additional taxes being paid by businesses, it’s also the cost of uncertainty. Businesses and investors don’t know whether the future will lead to a further escalation of tariffs or a trade truce, which makes it very hard to make long-term investment decisions.⁣
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What we do know is the trade war has led to weaker global growth forecasts, tech companies scrambling to reconsider supply chains, contractions in a variety of exports to China, lower US interest rates, and much more.⁣
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Maybe it’s worth it? You might argue that the short-term cost doesn’t matter, that this is a price worth paying if it leads to a China with reformed trade practices and greater market access.⁣
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Whatever the case, clients will rely on commercial lawyers to evaluate their existing contracts, draft contingency terms into new contracts and evaluate their options for the future. In times of uncertainty, high-quality legal advice may be the only constant.

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FINANCIAL TERMS - PART 1
We hope you find this useful, let us know what you think :). #law #lawfirm #lawstudent #legal #commercialawareness #lawschool #trainingcontract #aspiringlawyer #aspiringsolicitor #financialmarket #studytips #finance

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What should you know about Brexit for your interviews?⁣⁣
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Impact on Key Clients⁣⁣
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Financial Services: UK firms lose access to passporting rights, which allow financial institutions to serve EU clients without the need for a separate authorisation in each member state they operate in.⁣
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Mergers and Acquisitions: Uncertainty may scare buyers, while a weak pound may attract new opportunities. Buyers should factor in Brexit when undertaking due diligence and negotiating protection mechanisms in the acquisition agreement.⁣⁣
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Commercial Contracts: Businesses should review contracts and consider protection mechanisms post-Brexit (e.g. if a party has to move operations into the EU, faces new tariffs or suffers from currency fluctuations).⁣⁣
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Competition: Firms should factor in greater uncertainty, time and resources, especially if cross-border mergers are subject to parallel investigations by the UK and the EU.⁣⁣
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How are law firms responding to Brexit?⁣⁣
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UK lawyers are joining the Irish Roll of Solicitors to preserve their ability to claim legal professional privilege and represent clients before the EU courts.⁣⁣
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Firms are bolstering their operations in the EU.⁣⁣
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Law firms have established internal teams to monitor Brexit developments, held workshops and used technology to help clients understand what Brexit means for their businesses.⁣⁣
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Some law firms have made lateral hires to bolster their ability to provide regulatory advice, while others have established new practices to deal with client demand related to Brexit.

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Loads of new courses coming soon. Full day of filming with trainees, associates and legal tech consultants!

#courses #law #legal #trainingcontract #lawstudent #lawfirm #aspiringlawyer #aspiringsolicitor #filming #lawschool

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You own Company X. You want to buy Company Y. ⁣⁣
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We’ll call the owner of Company Y, ‘the Seller’.⁣⁣
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You’ve just finished due diligence on Company Y. You decide to proceed with buying the company, but you are worried about two things.⁣⁣
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First, you’re worried there may be existing litigation claims against Company Y that you haven’t discovered yet. You want your lawyers to deal with this issue when negotiating the acquisition agreement, which is called the ‘Sale and Purchase Agreement’ or ‘SPA’.⁣
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Your lawyers tell you to seek a warranty.⁣⁣
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Warranties are statements made by the Seller about the state of Company Y. They are found in the SPA. Warranties are contractual statements, so if they later turn out to be untrue or misleading, you can sue Company Y for breach of contract.⁣⁣
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In this case, your lawyers negotiate with the Seller’s lawyers to include a warranty. If there are no existing litigation claims, the Seller will warrant that there are no existing litigation claims. If there are some, the Seller will warrant there are no existing claims, aside from the claims they’ve listed in the disclosure letter. The disclosure letter is a document that accompanies the SPA and allows the Seller to qualify the warranties it gives.⁣
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By negotiating warranties, you’ve reduced your risks and you’ve encouraged the seller to disclose more information about Company Y.⁣⁣
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The second thing you are worried about comes after the Seller discloses that there is an ongoing litigation claim from an unhappy client.⁣⁣
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You can’t rely on warranties because the Seller has disclosed this to you already. Your lawyers tell you to seek an indemnity.⁣⁣
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Indemnities are promises to reimburse you for identified costs or losses. In this case, an indemnity will require the Seller to reimburse you for any specific costs arising from this ongoing litigation claim.⁣
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Note, however, this is all from your perspective. The Seller will also have lawyers to push back on these warranties and indemnities during negotiations!

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Law firms are attractive targets for hackers. They may have access to a company’s most valuable information, such as trade secrets, intellectual property and sensitive client information. They also serve as an intermediary when large sums of money are being transferred between parties.⁣⁣⁣
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Growing use of technology means the consequences of cyber attacks become more damaging. Information can be accessed from anywhere in the world and hackers are harder to track. The importance of adequate cyber security measures is only going to increase.⁣⁣⁣
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Impact on Businesses and Law Firms⁣⁣⁣
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Sometimes, education is the best way to prevent a cyber attack. For example, phishing attacks, which is currently the most common cyber attack facing the legal profession, involves hackers impersonating people, such as lawyers or clients, in order to access money or sensitive information. The best line of defence is to train lawyers when to spot fraudulent emails and dodgy attachments.⁣⁣
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However, no matter what law firms do, they can’t completely escape the risk of a cyber attack. That’s why what matters is how law firms respond if a breach does happen. That means putting processes in place so they can respond to a breach quickly, for example, hiring forensic investigators, informing affected clients, checking insurance coverage, drafting regulatory notifications and identifying legal obligations. The GDPR, for example, means law firms now have to report a breach within 72 hours or they could face serious fines.⁣⁣⁣
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Not all law firms will face a breach, but if they do, it could be one of the greatest threats a law firm can face. The integrity of their service rests on their ability to handle sensitive disputes and confidential deals. Lose that, and the reputational costs could be significant.⁣⁣⁣
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This story was taken from our weekly commercial update. Subscribe to our mailing list to get the week’s commercial updates straight to your inbox!

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