Commercial Awareness Update - March 2020

Hi guys,

This week's articles:
@Alice Manners - Heathrow Expansion.
@Jiraiya - Amazon's cashless go supermarket.
@Curtley Bale - CVC's intention to buy a stake in the Six Nations tournament.
@Rachel S - Blackstone agreeing to buy IQ Student Accommodation.

Heathrow expansion ruling - @Alice Manners

The Story

On Thursday the Court of Appeal held that the proposed expansion of Heathrow Airport under the ‘Airports National Policy Statement’ is unlawful as it does not take into account the Government’s commitment to the Paris Agreement on climate change.

The ruling does not mean that there will be no third runway, but that the Secretary of State for Transport should have considered the development’s compliance with the Paris Agreement.

The current Transport Secretary has said they will not be appealing the decision, but Heathrow Airport have said that they will appeal to the Supreme Court as an interested party. The Department for Transport could now withdraw the plans or resubmit the application, ensuring the Policy Statement explains how the expansion would comply with the Paris Agreement.

Impact on Businesses and Law Firms

The case could have far reaching implications. It is certainly a warning that the UK needs to put the Paris Agreement at the forefront of policymaking and comply with its commitment to make significant reductions in emissions. Future regulation and cases surrounding infrastructure may be decided with the same emphasis on climate change commitments.

The ruling could also inspire challenges to other similar projects, with possible challenges to HS2 already in the pipeline. This will provide work for many law firms - seven firms, including Freshfields, BCLP and Eversheds are on Heathrow’s legal panel. Climate litigation is increasing significantly, and climate compliance is likely to be at the forefront of businesses, and law firms’ considerations.

The ruling is a significant obstacle to the development, which hundreds of businesses are set to be involved in. Supporters of the third runway argue the ruling risks losing both jobs and trade, particularly as the UK negotiates post-Brexit, and businesses may be disappointed that there will be a delay to them gaining the benefits of a world-leading airport.


CVC finalise stake in Six Nations competition in a plan to reshape world rugby - @Curtley Bale

The Story

Luxembourg-based private equity firm CVC is close to finalising a deal worth £300m to gain a 14% stake in the Six Nations competition. This comes months after the initial enquiry was made in September 2019. CVC began their interest in world rugby with a 27% stake in the English Premiership rugby competition in 2018. Since then, the private equity firm has made its intentions clear that they wish to commercialise the sport and grow its global audience.

Impact on Businesses and Law Firms

CVC has committed to changing the traditional method of buying out an organisation before selling it for a profit. They see world sport as a “massive area” for development. Their share in the Six Nations reflects this commitment but also helps them access the global rugby market. As such, they have since been in negotiations with governing bodies from New Zealand and South Africa regarding the development of new competitions.

The biggest potential change could come in the form of a TV rights package deal. It has been rumoured that CVC is investigating whether they could gain all the rights to world rugby and combine it in one single package. Alternatively, there are rumours to sell the package rights to streaming companies such as Amazon. This would totally revolutionise the way rugby is delivered to customers. Currently, the Six Nations is exclusive to terrestrial TV. It will be necessary to balance up removing the delivery of coverage in this traditional way against the wider audience a streaming service may reach.

Law firms will be involved in advising CVC in terms of their initial investment in the Six Nations as well as the prospective TV rights. Magic Circle heavyweights Freshfields advised CVC’s first investment in English rugby in 2018. The private equity firm will likely require advice when it comes to acquiring broadcasting rights and entering the market with a potential streaming service.


Amazon Go Supermarket—a shop(lifting) experience? - @Jiraiya

The Story

The Amazon Go Supermarket in Seattle is the e-commerce giant's latest attempt to disrupt the retail industry.

Through deep-learning algorithms, facial recognition and machine learning, customers in this supermarket will have a cash- and cashier-free experience as customers can simply bag and go after scanning their IDs when entering. No more waiting at the tills or self-service machines.

Compared to its predecessor, the Amazon Go convenience stores, the brand new supermarket requires more sophisticated technologies to deliver a natural consumer experience due to a wider variety of unpackaged items.

Despite teething problems like accurately weighing fruits and vegetables, putting back a product in its original place if they do not want to be charged for it, it has only been 2 years since the release of the Amazon Go technology. Imagine what can happen in another two years.

Impact on Businesses and Law Firms

The E-commerce giant's entry into the retail industry is proof that even in a post-digital age, a digital business strategy still requires a physical presence to diversify its income channels.

The speculation is that Amazon would not open stores in England to test the water, due to the UK grocery market being characterised by low-growth and cut-throat price competition. Since Amazon has already registered the trademark of Amazon Go, a more probable course will be to “licence” out the technology to Sainsbury and Tesco which simply do not possess the technological prowess to materialise such change themselves.

To law firms, this breakthrough raises numerous exciting legal questions and opportunities. Data privacy is top on the chart. As Amazon’s technology tracks and analyses customers’ preference when they browse the store, supported by its online customers' data, it can produce more tailored recommendations. Lawyers could find themselves drafting terms and conditions for customers entering the supermarket that comply with the Data Protection Act.


Blackstone to buy UK student accommodation - @Rachel S

The Story

Private equity firm Blackstone has agreed to buy UK-based student accommodation group, IQ from Goldman Sachs and Wellcome Trust. Valued at £4.7 billion, this will be the UK’s largest private real estate transaction ever. Blackstone plans to refurbish and expand some of IQ’s sites and build new properties, signalling optimism for the UK’s purpose-built student accommodation market which is valued at more than £50 billion.

This comes days after Blackstone committed to invest in UK infrastructure from a $14 billion Saudi-backed fund. Blackstone’s Global Head of Infrastructure, Sean Klimczak described their approach to the UK as “bullish” viewing the UK as “undervalued” and a “significant opportunity.”

More broadly, UK real estate has seen a so called ‘Boris Bounce’ with the Conservative government victory halting fears of infrastructure nationalisation under a Labour government. Student accommodation is particular area of undersupply with world-renowned higher education establishments and the government’s plans to increase the number of international students in the country by a third.

Impact on Businesses and Law Firms

As an investment, student accommodation is no longer being seeing as an alternative asset class. Typically predictable returns and projected growth in demand may see continued real estate investment and property developers will pursue new developments in an attempt to meet this demand.

Kirkland & Ellis are advising Blackstone with a specialist from Gowling WLG’s real estate team. Jones Day is leading IQ with Simpson Thatcher & Bartlett advising on finance. Lawyers will play a part in fund formation, negotiating deal terms, due diligence, organising financing, tax structuring and clearing regulatory hurdles. For future development, real estate lawyers will be involved with obtaining planning permission, land registry, reviewing third-party rights, environmental issues and drafting lease agreements. Faced with high competition for deals, lawyers will be needed to maximise efficiency and navigate increasing government regulation in the sector.

Open Days/Networking Events - My Recommendations & Strategy

In my first year, I'll unashamedly admit - I was an open day and networking event regular. Any excuse to visit a firm, eat some canapes and enjoy some free drink - I was there!

Having experienced countless talks and spoken with what seemed to be an infinite amount of graduate recruitment representatives and trainees, I feel I have a good idea of what your goals should be at these events and how you can get the most out of them.

So, here are my key takeaways to ensure you can utilise these events to your advantage.

KEEP A DIARY OF YOUR ENTIRE TIME AT THE FIRM
I have capitalised this as it is the most important. I cannot stress this enough. Anyone who gives a speech, write their name down and summarise the content. If you speak to a trainee, note their names down and the conversation you had. If you engaged in a negotiation exercise, write down what you did and what you learnt. When you finish the day, go home and type it up into a document. I have docs and docs and docs of open day notes for firms.

The reason you do this is for when you are making your applications. Given that firms receive thousands of applications for a handful of jobs, you need to stand out. You do not want to be the applicant who recites what is posted on their website or on Chambers Student. If you can tie something back to a tangible experience when writing an answer, you are ahead of the game - "I want to work at X as I heard that trainees get higher levels of responsibility. This was affirmed when I attended the open day and spoke with X who mentioned working on X...." It's more compelling, it shows you have engaged with the question/competency and it also shows that you care about the firm (as you have been there before). Likewise, when speaking about a transaction, it is incredible to mention the presentation given by X partner and what you learned from it as opposed to rattling off some press release you read. A prime example is the "HSF - Inside the Headlines" event. It's gold-dust.

Start attending events ASAP
You'll soon realise that these events generally run from October - March. You want to gain as much information as possible from these events to use in your decision-making for where to apply and to substantiate your claims in your application form. So, when Clifford Chance et al close their applications in December, you don't want to be attending an open day in February. My advice is to attend as many as you can in the first year to ensure you have gained the knowledge pre-application. Further to this, open days take time and commitment to attend. Your first year at uni counts for nothing so it really is the ideal opportunity go to them.

You are not going to be offered a job on the open day.
There is no need to act smart, competitive, or engage in one-upmanship. The truth of the matter is that open days and networking events are there for you to learn a little bit more about the firm. Enjoy it. One of the most embarrassing experiences I had is when a partner had to come to our table during a negotiation exercise and tell the other "team" that they had misidentified the point of the exercise - to negotiate (as they consistently low-balled and refused to budge in an effort to show off at the end when the deal needed to be struck). It was ridiculous. Don't be that person!

Use these events to achieve your goals
There really is no need to prepare a list of fancy questions to ask in an attempt to sound smart. Use these events to achieve your own goals. You do not need to ask anyone, anything, if you do not want to. You can just soak up the atmosphere and get a feel for the firm. There is nothing wrong with that. But, the most productive events will be those for which you have a clear plan. During networking, I always wanted to ask GR a set of specific questions to my own application and to find out about the nuances of the process. I would then spend most of the time trying to get to know the trainees and ask them about life at the firm. The only questions I would ever really ask a partner would be if there was an interesting transaction/case they had worked on recently that was public that I could review as I wanted to spend my time wisely when researching firms (i.e, not reading about an obscure derivative transaction that would have probably gone over my head).

The best time to network is at the end
If you are attending networking drinks, the best time to network is at the end. Primarily, this is because most people have left and the leverage between attendees and partners/associates/trainees is much, much higher. Often, you are left with 4 firm employees to 1 or 2 attendees in each group. This way, you can ask your questions and get a response that isn't subject to the pressure of time. Earlier in the event, you will see swarms of people crowded around employees and they want to ensure everyone has an opportunity to ask a question so their responses are often shortened. Personally, I spend the first half having a drink, chatting to people at the event and simply networking. Then I'll usually see who is free to ask some questions to.

Everyone is in the same boat - Just say hi!
Everyone is in the same boat at these events. No-one knows anyone, save for those who have already met each other at previous open days (you'll be surprised how often this happens!). Be friendly and just chat with people. No-one wants to make that first move, but honestly, no-one is going to tell you to leave them alone. I have met so many people at open days who I have added on LinkedIn and consequently met at other events. It makes it so much easier when you see a friendly face at the next event!


Does anyone else have any top tips or views on the above? If so, I'll edit the post and amend accordingly :)

Commercial Awareness - Podcast Thread

Hey everyone.

Commercial Awareness is not something you can cram. It is built up over time and is the result of how you engage with the business world that exists around you.

If any of you are like me, I hate reading! So, I found my particular method of increasing commercial awareness was simply listening to a podcast or two each day while on the bus to Uni. Over time, I found a series of useful podcasts that I could dip in and out of when time permitted, as well as some short daily podcasts to keep on top of the news!

I use Spotify to listen to podcasts, however, I have no doubt these are available on other platforms. Here are the ones I recommend. Click the link and follow! (For reference, there are many, many out there! These are simply the ones I prefer).

FT Daily News Briefing - 6-7 minutes of daily news
https://open.spotify.com/show/1410RabA4XOqO6IV8p0gYF?si=8IxqydHSR_avyrgesSo5WQ

The Economist: Money Talks - 30 minutes, once a week, covering stories at a deeper level
https://open.spotify.com/show/2Yvo8QxZf7WlSEsIwKjtX4?si=2y73y9hIQa-8p212SYC2OQ

The Economist: Intelligence - 30 minutes, daily, covering both business and political issues. Suitable for wider knowledge
https://open.spotify.com/show/12zKAMNyS2GNentUzxq9QN?si=voyTYnYwR7GLdXgl8kYSyA

The Economist Radio: 30 minutes, once a week, covering a broad range of geopolitical and business issues
https://open.spotify.com/show/2ZFDmgDS2Z6xccP51s1zFQ?si=qKQXInhZS8KhYP4wQBwNcw

BBC Radio 5: Wake up to money - 45 minutes daily, chat show covering the daily business issues. Recommended if you have a longer commute, otherwise, use the FT Daily News briefing
https://open.spotify.com/show/1Q9XAxIXE1HQ656Ft7CtZR?si=s8VxXeTjRKaUwVuG031D7w

The Bottom Line - It features issues with clear commercial implications, often with a focus on what business sectors are doing, without feeling too 'heavily' commercial. An easy and quick listen (all under 30 mins) and genuinely interesting topics - Thanks @ath120!
https://open.spotify.com/show/4tnEpf6izermKcJMN2Wa2g?si=-2_C79QKTFCa0ff5Xu-_YA

"The Commercial Awareness Podcast" by Tapiwa Museba - it provides weekly updates on what has happened in the legal world, provides analysis and allows you to see the importance of the events in context. It is aimed at aspiring solicitor, future & current trainees and was invaluable in my understanding of the commercial world - Thanks @Karin
https://open.spotify.com/show/1bgdRgOpphAb6hqxjuMrTQ?si=oHID6xidSCqFJtvysIOKeQ
https://podcasts.apple.com/gb/podcast/the-commercial-awareness-podcast/id1440864554

If anyone has any recommendations, post them in here and I'll keep this thread updated!

Describe a situation where you have used your commercial awareness to achieve a better outcome.

Struggling with answering this question!

I understand what commercial awareness is and I know how to relate it to law firms eg coronavirus means that many businesses will be wanting to implement force majeure, which law firms will have to assist with

but I am unsure how to 'show' commercial awareness in a particular situation

I understand that obviously no one will know my situations but an example of someone else's use of commercial awareness would help, as I could then analyse my own experiences

Interview Question: Why did you fail your vac schemes?

Hi everyone :) I'm not sure if this has been posted before. I've been getting this question "Why did you fail your vac schemes" recently. I'm wondering if anyone has any tips on tackling this question? Frankly, mine was lacking confidence (leading to bad time management, not as proactive etc.) ... but I'm not sure if recruiters would like to hear that, given that job applicants should be confident. Would love to hear your thoughts on this. Thank you so much! :)

Paralegal job and vacation schemes

I recently secured a position as a paralegal in commercial litigation for a small commercial firm. This will obviously help me immensely and it's great experience, but I also have an upcoming interview for a vacation scheme with a regional law firm. My dilema is, I would have to take 2 weeks leave for this vacation scheme IF I got offered it. I have already decided I would not want to to do my training contract at that firm for location reasons, but I still would be eager to do the vacation scheme because its great experience. SO my dilema is, if I got offered this vacation scheme, is it worth prioritising it over my employment even though I would not want to do a subsequent training contract there? My employers wouldn't be too happy as I am relatively new and it would mean they would know I am looking for other opportunities, so I'm not really sure which is more important

Foreign Legal Experience vs Vacation Scheme?

Hello Everyone! I am a penultimate year student studying abroad in Hong Kong this year, and I am considering finding legal work in Hong Kong and Mainland China for the summer.

This is partly because I haven't been able to secure a VC in the UK and this seems to be my only option for gaining legal experience before my final year. (Regardless, I will also be applying for winter and spring schemes in my final year)

I was wondering if legal work experience in another jurisdiction is a sufficient replacement for a VC in terms of demonstrating knowledge about what legal work involves? i.e. how useful is a legal experience in another jurisdiction when it comes to applying for VCs and TCs in the future?

Many thanks! :)

Failure... want to give up on law?

Hi all,

I've used this forum for a while but never posted on it... now is the time! I just received a rejection from my final law firm for this application season and I feel so crushed and don't know how to move forward from it.

I completed a vacation scheme last summer and was told me I'd been great during the scheme - my teams loved having me, they couldn't believe I was non-law, I'd done really well on all the assessments and my work etc. - and they told me that I MUST go into law. I am a graduate in full time work from a non-law degree and this scheme was three weeks long, sadly leaving me with no annual leave for the rest of 2019 to do a winter scheme or, well, anything.

This application cycle, I started preparing early in July doing my research and stayed late at work every night from September through to January to complete nine vacation scheme applications as best as I could. I spent weeks perfecting them until I didn't think I could do any better. Unfortunately I only had one assessment centre which, due to personal circumstances outside of my control, I could not focus on the day and did not perform very well. All the rest I received PFOs after tests. :(

I've found myself at the point of wanting to give up on law. I'm not sure how to go forward from here as I cannot do the GDL without sponsorship and I feel like I've got all the hard skills they ask for and tell applications they could gain: consistent grades, a range of extracurriculars, technology skills, languages, legal work experience, non-legal work experience, volunteering and charity work, etc... I'm not sure where I'm going wrong as no one has any time to give feedback and it is exasperating, especially after last year! :( I just don't know how to bring myself to put myself through this for a third year.

Has this happened to anyone else? How did you move on? What did you do? Is it worth last minute applying to training contracts?

Thanks all and I hope application season is treating you all better than it is me! :(:(

Cover letter formalities

I am not too familiar with the correct formalities of English cover letters and have a few questions.

1) Are any of the following omissible?
  • "... as advertised on ABC." - to show where I found the vacancy.
  • "Thank you for your time and consideration."
or anything similar to that

2) When sending my resume and cover letter attached to an email, should I write an introduction and state which position I am applying to just in the body of the email or in both the email and the document itself?

I know these are mostly little details but I want to make sure.
Cheers

CMS Application 2020

Hey guys,

I've applied for the CMS Academy 2020 and had some questions about the whole process. If anyone can answer that would be much appreciated!

1) After the online application form, which test are applicants asked to complete? I've read online that it's a critical reasoning test - I would assume that it's the Watson Glaser but online I haven't found much updated info about this. If it's not Watson Glaser, does anyone know the specific test provider?

2) Is there a video interview during the process? Curious to know how those who have completed it have found it.

3) At the assessment centre, are you required to take more psychometric tests? On TCLA threads about the CMS AC I haven't read anything about them, but elsewhere online I did. If you did take psychometric tests, what did they involve e.g. numerical reasoning, abstract reasoning etc..

Thank you!

Assessment Day - Negotiation exercise and presentation

Hi everyone,

I have just received my first assessment day invite and I am feeling very lost and frankly quite terrified. They have told me that I will have lunch with partners/associates, a written exercise (45 minutes), negotiation exercise and a presentation (5 minutes on a commercial topic I found interesting and how it relates to the firm). I don't know where to start. How can I prepare well for the written and negotiation exercise? With regards to the presentation, what could be an 'interesting' topic for a corporate/government matters focused firm? I know that the London office has a particular focus on oil and gas/international arbitration/fraud-related disputes. Also, sorry for the ignorance but what is a negotiation exercise? I would really appreciate anyone's input.

Akin Gump Training Contract

Does anyone know if Akin Gump recruit on a rolling basis for their training contracts? Also roughly when they will start reviewing applications? I'm a penultimate year but I didn't apply for their vac scheme, so I'm sending in a TC application (assuming they don't recruit predominantly from VS's). Also if anyone has any general advice for applying, then this is sincerely appreciated!