New Threads

Hi everyone

We're going to move the 'trainee advice' page to this section so that the posts are easier to sort through. I'll be updating each one as I add them in so they're worth a look even if you've checked out the page before. The plan is that we'll also add more answers over time.

For those that haven't seen it, the page was adapted from my "ask me anything" thread in The Student Room, where students asked questions about applications, interviews, vacation schemes and the training contract.

Thanks!

Hi, I was wondering if anyone could explain the GDPR briefly? I've seen this mentioned a lot and I've found it confusing to understand what it means exactly. Thanks

Hi guys,

Do any of you who are trainees already know what companies law firms use for background checking? How does the process work, what do you have to provide and how long does it take? Also, how do they check the extracurricular activities one has done? For example, if I did volunteering and it was on an ad-hoc basis, I would not be in their database, so how can I confirm I actually did that charity work?

Thank you!

M.

GD1995 said:

Hi Nicole,

Could there possibly be a feature giving more insight into how a law firm works as a business, the way it generates profit and gets work from clients. As well as the role of lawyers in commercial law firms and how they tackle different business crises? (if possible!)

Thank you!

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Nicole said:

Hey GD, I love the suggestion, it's something I used to struggle with! I've spoke to @Jaysen and he said we can get the guide started this weekend and aim to get it out next week (depending on how deep we go).

So just a tentative outline:

• How is a law firm structured?
• How does a law firm make money?
• Profits per equity partner (PEP) (this is used all the time to refer to law firms but it can be quite confusing and it's also controversial!)
• The role of lawyers in commercial law firms
• How do lawyers tackle different business crises?

Is there anything else you'd like us to add? We'd be very happy to do so! Also, when you mention business crises, were there any in particular that you had in mind?

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Hey,

I'll answer these questions over the next few days. Starting with the first -

How are law firms structured?

Most large commercial law firms operate as a limited liability partnership or "LLP". An LLP, like a company, has a separate legal personality. It can enter into contracts, incur debts and conduct business in its own name. If things go wrong, the members of the LLP - the partners - are only liable to the extent agreed (or as stated in the members agreement).

A majority of the large commercial firms have moved to an LLP. In the UK top 50, Slaughter and May is the only general partnership. As a general partnership, the firm is not obliged to register or file accounts with Companies House, so it's good for law firms that want to keep their financials private. But it's not so good if things go wrong because the partners in a general partnership have unlimited liability - so each partner is personally responsible for the debts/liabilities of the firm.

The partnership - whether an LLP or general partnership - is a structure that has been used by law firms for decades. The equity partners own the law firm and have a right to share in the profits once the firm's expenses are paid. They're flexible vehicles that can deal with changes to the partnership and compensation. As owners of the business, partners get a say in how a law firm is run, although the overall law firm strategy is often delegated to an executive committee.

Hi Jaysen

I have an interview coming up at Slaughter and May, I would really appreciate any advice that you have.

Thankyou

Some of you have shared some very interesting articles and I thought we'd collate them (and future ones) here.

To kick us off, The American Lawyer just released its US law firm rankings for 2018. Here is the chart for revenue:

https://www.law.com/americanlawyer/2018/04/24/the-2018-am-law-100-ranked-by-gross-revenue/

To summarise:

Revenue:

1. Kirkland
2. Latham
3. Baker McKenzie (verein)
4. DLA (verein)
5. Skadden

Profits per equity partner:

1. Wachtell
2. Quinn Emanuel
3. Kirkland
4. Paul Weiss
5. Sullivan & Cromwell

A couple of interesting conclusions from Legal Week:

• The 100 largest US law firms have revealed strong growth figures, but these aren't out the reach of UK firms.
• The data shows the "underlying stability" of the legal market in the US despite uncertainty.
• The biggest US firms are pulling away from the rest.
• 16 US firms have an average PEP over $3m and 22 over $2m. Only 9 UK firms had PEP over £1m last year.

Hey all,

Please find attached the second case study, you'll note that it's a fair bit chunkier than the last one.

This case study mirrors the style of a real written exercise I had during an assessment centre. It's testing, among others, your ability to analyse large quantities of information, structure your writing and form an opinion.

Kindly note, unfortunately we lack the capacity to provide individualised feedback any more, but you can find a sample points to note within our M&A Course.

Good luck!

Jaysen

Hey all,

This is the first in a series of mock case studies, please see attached.

The case studies are here to help you prepare for the written exercise at assessment centres. This one focuses on your ability to analyse complex information and form a solution.

To simulate a real written exercise, we recommend that you print out the materials, time yourself and hand-write your answer. Try to work in a quiet environment with no distractions. Kindly note, unfortunately we lack the capacity to provide individualised feedback any more, but we encourage you to use this for practise!

The case study has been designed to take one hour to complete.

Best,

Jaysen

Hi everyone

I came across this helpful guide about how law firms operate as a business and thought I'd share. It covers things like:

• how law firms are structured
• how law firms charge clients and make money
• how law firms use leverage and working capital
• how law firms compete
• the future of law firms

It's a few years old but most of it should still be relevant. Here's the link: https://drive.google.com/file/d/1yyz-u2rJ5U-uwj86T0WVd_rXo1Hz-YAt/view?usp=sharing

Selma95 said:

Have you tried Finimize?

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Nick said:

Hey guys,

I know that Jaysen's made a case study guide on M&A transactions. However, I just came across this article on private mergers and acquisitions in the US. Though its private M&A and tailored to the US legal/regulatory framework, many of the fundamental principles are universal. Two of Shearman & Sterling's M&A partners wrote the article - so its quite detailed.

https://uk.practicallaw.thomsonreut...ontextData=(sc.Default)&firstPage=true&bhcp=1

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KS94 said:

I've really enjoyed the commercial awareness updates.

Aside from the usual sources (FT. Economist, etc.). Are there any other particular sources which can give a strong foundation for understanding macroeconomics to the level required for firms? Or is this something you pick up through wider reading and research?

Click to expand...

Hey all,

If you don't mind, I'd like to bounce an idea off you guys.

I would say the most common question I get asked from students is 'how do I develop commercial awareness?'. It's a completely fair question to ask; I had the same problem when I was applying, and it's not typically taught at university.

At the moment, I would say the FT and The Economist are good for developing a broad commercial understanding of the world, and as some of you have suggested, Finimize is excellent for breaking down business news and financial terms.

We would like to add another resource to the mix by producing our own commercial awareness briefing. The idea is that we'll develop your ability to think commercially by breaking down the topics that feature in commercial interviews.

Because they're bite-sized emails, I should be able to tackle a range of topics about the legal market, business and finance. For example, some of you may have seen the list I drew up late December on TSR. These are some of the topics I hoped to tackle:

Case studies:

• How a company is formed: structure and decision making
• Acquisitions: asset v sale purchase
• Raising capital: equity v debt finance
• Public companies: why list?
• Private equity: from forming the fund to IPO
• Security: types and priorities
• Inflation, interest rates and derivatives: a basic intro

Commercial:

• The impact of Brexit on law firms
• Trends: M&A to Energy
• Looking forward to 2018
• Looking back to the financial crisis

Legal:

• Inside a law firm: from structure to profit
• Competition: what makes a law firm different?
• The difference between US and magic circle firms
• The future of law firms: technology and its consequences
• The biggest challenges facing law firms

I'd love to hear your thoughts on this idea - the good or the bad. Please also feel free to make any suggestions about the bite-sized topics you'd like covered and whether you'd prefer a daily or weekly update. @GD1995 and @Denisa Olaru - apologies for not getting to your suggestions sooner, but I hope to cover them in these emails.



PS: I attach a teaser for what to expect


Many thanks,

Jaysen

Hi everyone!

I'm drafting an answer to the question: Which areas of law are of special interest to you and why? In my answer, I'm focusing on specific areas that I'm interested in such as charities/private client/property but I was wondering if I should take a broader approach as the firm seems to describe its practice areas under three strands : commercial, private client, personal injury & clinical negligence.

Thanks a lot for your help!

Hi Jaysen

I hope you are well.

I was wondering if you may have any advice when it comes to written exercises. I've been told that the written exercise I will do at an AC this Monday is likely to be business-related. For example, candidates are given 4 companies to choose from and then have to compare them and then pick one to advise their client to invest in. It may be that candidates are given a criteria from their client to base their decision on. Obviously this depends on who the client is, etc, and at the end of the day the firm won't care which company you choose as long as you can demonstrate your analytical skills and justify your decision. But I was wondering if you may have any advice on how best to go about analysing businesses? For example would it help if I applied frameworks such as SWOT, and if so which ones should I be aware of?

I've been trying to find case studies to practice but they are severely limited! I think I know how to analyse and justify but I struggle in the context of business case studies. In my last AC I failed on the written exercise and I'd really like to improve this time!

Thank you very much and I look forward to hearing from you.

Kind regards
Y

Hello,

I have an assessment centre coming up with CMS Cameron Mckenna and I was wondering if anyone has any advice/experience please?

Is it possible to set up a mock interview through the Corporate Law Academy please?

Thanks in advance!

Hey everyone,

I wonder quite a lot whether I spend way too long on applications and I think that means I don't get enough done. In January I only managed to send out 3-4 because of this. It takes me at least a week and sometimes long to research a firm and write up. I think a lot of that is because i take forever to write and constantly scrap my sentences. For example I spent the whole day on one application today and have literally written a paragraph...

Any tips/thoughts would be great

Networking is very common on vacation schemes and I know it doesn't come naturally to most people (including me!). I thought it would be useful to share another post from @Jaysen on this:

I watched a partner in my department network at a client’s drinks and he’s what I’d call an effective networker. It looked more like he was talking to old friends than networking. He was having fun, people wanted to be around him and almost every time I looked he was deep in conversation with someone new. There was a lot to take away from that; mainly to shift the dialogue away from ‘networking is so bad’ to ‘just talk to people’. Here are some further tips I've learned over the years:

• Make a point to remember people’s names at the start. This is specifically for me because I’m terrible at names and that can lead to some awkward situations down the line.

• Be genuine. Sounds cliché and obvious I know but I think it’s worth emphasising. It’s obvious when you speak to someone and they’re not being sincere, or they’re trying to sell themselves too hard, or they’re trying to flatter.

• It’s good to strike a balance between conversations about work and other things. That can make it easier to bond with the other person, especially as it’s often a chance for them to have a break away from work for a short time.

• People like to talk about themselves. Quite simple this one, if all else fails, ask questions. Especially helpful if you’re in a situation where you don’t know what to say.

• -Ask appropriate questions. Certain questions will be appropriate for graduate recruitment v trainees v partners. E.g. It’s not ideal to ask a senior partner about LPC funding.

• Follow up. I can’t say I did this much as a student but now I notice the students who do so. If someone at the firm suggests that you email them then it can offer a lot of opportunities later down the line.

Hi all!

I was wondering if you had some tips on to how to practice approaching and tackling case studies? Are there any exemplar case studies that you know of? I know the M&A guide is a good place to start but I wanted some materials so that I could use the guide and apply it to!

Thanks in advance

Hi all,

I'm currently trying to answer the following question for an insight evening: Why do you want to attend an insight evening with us and why do you feel we should offer you a place?

I'm thinking of writing about what interests me about the firm/ wanting to learn more about the firm's culture and my experiences that are relevant to the firm - but not sure if this is enough for this question. I also want to apply for a training contract at this firm - so wondering how I can avoid being repetitive with the reasons for applying to the firm.

I'd really appreciate some advice on how to go about answering this question, thanks a lot in advance!

I thought I'd create a new thread for April 2018 . You can find the March posts here: https://www.thecorporatelawacademy....ommercial-news-update-march-2018.29/#post-466.

04/04/2018

Trump's escalating trade war

• The Story - In response to alleged intellectual property theft, the US government has announced plans for a 25% tariff on 1,333 Chinese products. The products include robots, vaccines, electric cars and military weapons. It also features components that US companies may use. China responded quickly with a 25% tariff on 106 products. That includes cars, soybeans and some aeroplanes.
• The impact on law firms - This is going to impact many US manufacturers and US-China trade relations. The growing trade war hurts companies looking to invest in the US and China or those who rely on international trade and there's a lot of uncertainty about what direction this will take. Law firms have already found it hard to operate in China and they may have to reconsider their expansion plans if this continues to escalate.

PSA to stay after Brexit

• The Story - PSA, the parent company to car companies like Vauxhall, Peugeot and Citroen is going to continue to manufacture vehicles until at least 2029. This follows a £9m investment by the UK to guarantee its competitiveness after Brexit.
• Impact on law firms: The UK's investment gives some certainty to carmakers on what's going to happen after Brexit. It's a sign of how interlinked the industry is with the EU as over half of vehicles that are made in the UK are exported to the EU and over half of the manufacturing parts come from the EU.

GDPR to come soon

• The Story - The General Data Protection Regulation will come into force on May 25 and gives regulators to power to fine companies to the highest of €20m or 4% of a company's annual turnover. It also includes penalties for failing to look after data from hackers.
• Impact on law firms - This regulation is going to significantly impact law firms, both directly and indirectly through their clients. Companies and firms will be required to follow stringent rules on how they process and store data and get customer consent. It affects both companies operating in the EU and those who employ EU workers or sell to EU customers. Regulatory and data protection lawyers who specialise in this field will be in high demand as companies will need detailed advice to avoid the significant penalties. The problem is it's going to be costly and it could impact the ability to do business.

Spotify flotation

• The Story: Spotify listed on the New York Stock Exchange and was valued at $26.5bn. But the company didn't go for a normal flotation in a sign of the uncertainty around tech stocks at the moment. Instead of hiring a bank and going through an extensive IPO process, Spotify's route involves a company going straight to the market and selling existing shares.
• Impact on law firms: The recent tech sell off in the stock market has shaken a lot of investors and caused prices to fluctuate a lot in recent weeks. This may be a broader sign of concerns about IPOs and companies may put flotations on hold over fears about the current political climate. Law firms may also support clients in different types of listings. Spotify's route to the market, a direct listing, is seen as a test case for future companies.

Good morning all and happy saturday!

I came across this motivational post on Linkedin last night and wanted to share it with you all for some inspiration

http://www.accidentalcreative.com/creating/run-your-race-not-someone-elses/

Hey guys,

I've really enjoyed reading your applications over the last few months and well done to those of you who've secured interviews.

I would like to announce that from the 31 March 2018, we will be introducing new criteria for application reviews. These are based on the points system listed below. The number of points may adjust in the future but if that's the case I will let you guys know in advance.

10 points = 1 Application Review
15 points = 2 Application Reviews
20 points = 3 Application Reviews
Edit: Points are now allocated as follows:

• 10 points = 1 Application Review
• 25 points = 2 Application Reviews
• 50 points = 3 Application Reviews
• 100 points = 4 Application Reviews

If you don't have enough points but would like an application review, consider signing up to TCLA Premium: https://www.thecorporatelawacademy.com/forum/pember/membership-new

Over the next few days, I will be implementing a number of ways to receive points. They will be based on a number of factors from thoughtful forum contributions to post likes. You can view your points in the 'Members' section of the forums.

We are introducing this so we can better support the students who have contributed to our community and to have some fun in the process! It will also help me to work on website updates and the commercial awareness posts.

If you have any questions or feedback do let me know.

Best,

J

Hi All,

When answering firm questions such as describe an issue you are following in the press and how it will affect x y z firm, would it be best to addresss both the positive and negative aspects and also your opinion? What are people’s thoughts on this?

Hi everyone,

One of the key things with the commercial awareness updates on here is that students get an idea of what to look out for, how to analyse news stories and then how this may affect firms. However, a lot of the content on this site seems (I may be wrong) geared towards magic/silver circle firm applicants.

For various reasons, I'm targeting city/national firms for vacation schemes/TCs.

Does anyone have any tips for using this content in helping gain commercial awareness about issues which are more likely to affect the firms I am targeting? Or would I need to look at different issues altogether?

If this doesn't make sense then apologies in advance!

Hi guys,

I'm currently working on a summer VS app for Shearman & Sterling, and I was just wondering if anyone has any thoughts on how to approach a question like this:

"As one of only a handful of elite, international law firms, how do you think Shearman & Sterling LLP maintains its competitive advantage?"

Any feedback will be greatly appreciated. Thank you all in advance.

Hellloooo everyone.. just me with another forum title.

Anyone here applying to Kirkland & Ellis for a straight TC?

Sorry for creating a new thread, I was unsure as to where I should post this.

Anyway, I wanted to ask if anyone has ever applied to the Bird & Bird and how they found the application questions? I'm set to start writing my TC app but wanted to get an idea of what the firm looks for in respect to successful applications.