Globalisation of Law
Peter Charlton
London Managing Partner – Clifford Chance
13 January 2003
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Summary
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My perspective
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About law firms!
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The Law Firm market
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Historical overview
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The development of Clifford Chance
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What next?
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My perspective
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Started legal career in 1979 with Clifford Chance
Specialised in Company law/Mergers &
Acquisitions
Became a partner in 1986
Became Managing Partner (Corporate) in 1993
and Managing Partner (London) in 2000
Practitioner/Manager not an academic
Totally subjective
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About law firms! (and lawyers)
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Partnership model (limited access to capital)
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Flat structure
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Highly consensual
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Conservative
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Individualistic and independent – management resistant
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Regulated and jurisdiction based
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Relatively slow to internationalise – compared to other
professional services organisations – accountants,
management consultants, investment banks etc
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About law firms! (cont’d)
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Business law firms
Other practices (divorce, family, criminal, wills
and probate, residential conveyancing, welfare
and immigration)
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About law firms! (cont’d)
Business law firms – distinguished by work type
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Corporate
Finance
Capital Markets
Litigation and Dispute Resolution
Real Estate
Tax, Pensions & Employment
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About law firms! (cont’d)
… and distinguished by client
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Banks, insurance companies and other
financial institutions
National, regional, global corporations
Markets, governments, government agencies,
local authorities etc
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Law firm market
High
Shapers
Incumbents
Full service
integrators
Full service
integrators
Profit
Specialists
Low
Small
Source: McKinsey
Size
Large
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Law firm market (cont’d)
1980
1400
1300
Specialists
1200
Shapers
1100
1000
900
800
700
600
500
400
300
200
100
Incumbents
0
0
200
400
600
800
Full service
Full
service
integrators
integrators
1000 1200 1400 1600
1800 2000
No. of fee earners
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Law firm market in London
2001
1400
Specialists
1300
Shapers
1200
S&M
1100
1000
900
H. Smith
MacFarlanes
800
CC
Freshfields
L’laters
A&O
700
Ashursts
Gouldens
600
500
TSB
T. Goddard
400
Lovells
N.Rose
DLA
S&S
Eversheds
CMS
300
S.Harwood
HSE
200
100
Full service
integrators
Incumbents
0
0
200
400
600
800
1000
1200
1400 1600
No. of fee earners
1800
2000
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Law firm market - Global
2002
1900
Shapers
Specialists
2000
WLR
1800
1700
1600
1500
1400
1300
1200
1100
1000
CSM
PW
MT
DPW
STB
S&C
SA
S&M
900
800
AO
700
LL
FF
CC
JD
600
500
B&M
400
300
200
100
E
Incumbents
Full service
integrators
400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400 3600
No. of fee earners
1000
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Historical Overview
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1860 – 1900
Apex of British power and influence
Establishment of English law as
accepted system in international trade
and contractual relations
City of London is the dominant
international financial market
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Historical Overview (cont’d)
1860 – 1900
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Establishment of US nation and unification of
Germany
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Industrialisation of US and German economy
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Creation of single US market
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Development of national brands in US
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Immigration to US
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US overtakes the UK in industrial production
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Historical Overview (cont’d)
1900 - 1945
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1914 - 1918 First World War
Boom/Bust – 1929 crash and Great
Depression
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1939-1945 Second World War
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Decline of UK as world and economic power
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Historical Overview (cont’d)
1945-1980’s
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Consolidation of the US economic position
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Cold War
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Reconstruction in Europe – creation of EU
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Technological and Communications revolution
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Regulation and Deregulation
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Historical Overview (cont’d)
1980’s 
Industrial Consolidation
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Development of service economies
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Rapid technology and Communications development
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Privatisation
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Deregulation of markets
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City maintains position as international financial centre
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US – dominant global capital market – increased
importance of US law
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Increasing sophistication and complexity
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Anglo Saxon transaction techniques dominate
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The Development of Clifford Chance
Coward
Chance
(Est 1802)
1987
CLIFFORD
CHANCE
2000
Mergers with
Rogers & Wells
(US) and Punder
(Germany)
Clifford-Turner
(Est 1900)
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Development of Clifford Chance –
Offices worldwide 2003
Berlin (95)
Luxembourg (55)
Munich (93)
Budapest )80)
Prague (43)
Frankfurt (776)
Dusseldorf (218)
Moscow (84)
Warsaw (86)
Amsterdam (297)
London (2,520)
San Francisco (64)
Palo Alto (7)
Los Angeles (15)
San Diego (11)
New York (964)
Tokyo (68)
Brussels (104)
Paris (462)
Shanghai (35)
Madrid (198)
Beijing (26)
Barcelona (55)
Hong Kong (367)
Washington DC (169)
Milan (138)
Bangkok (64)
Padua (13)
Rome (57)
Singapore (53)
Dubai (50)
Sao Paulo (33)
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Development of Strategy
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Development outside London initially small scale,
opportunistic and partner/client led
Merger in 1987 provided impetus and released
energy
High ambition, need to differentiate and willingness
to invest
By 1989 – strategy developed to be the leading
European Firm
By 1999 – strategy developed to be the leading
Global Firm
Mergers in 2000 in the US and Germany
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Development of Clifford Chance –
Global Network
Merger with
Rogers & Wells
and Punder
Coward Chance and
Clifford-Turner merger
1802
1962
1968
London
Paris
Brussels
1972 1974 1976
1980
1981
1990 1991 1992 1993
1986
Madrid
1987
Amsterdam
Moscow
Frankfurt
New
York
Dubai
Hong
Kong
Tokyo
Singapore
1996
1995
1998
1997
Warsaw
Prague D’dorf
Barcelona
Padua
Milan
1999Luxembourg
2003
San
Francisco
Palo Alto
Rome
Budapest
2000
Washington
Bangkok
San Diego
Sao Paolo
Shanghai
Beijing
Los Angeles
Offices closed:
Chicago
Bahrain
Jeddah
Riyadh
Bahrain
Sharjah
Leipzig
Ho Chi Minh City
Hanoi
Munich
Berlin
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The firm is now truly global …
World-wide Revenues by Region - FY2001/02
£1bn
Middle-East
0.5%
Americas
24.7%
London
42.5%
Asia
7.3%
Continental Europe
25.0%
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… and well balanced across practice areas
World-wide Fees by Practice Area - FY2001/02
£1bn
Tax Pensions &
Employment
8.5%
Banking & Finance
22.4%
Real Estate
7.5%
Litigation & Dispute
Resolution
22.0%
Capital Markets
11.7%
Corporate
27.7%
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Balance of practices is different across
practice areas in certain regions
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What next?
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Economic uncertainty

Slow down/recession

Further consolidation
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Increased regulation
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Forces of globalisation continue
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Law firm market - Global
2002
1900
Shapers
Specialists
2000
WLR
1800
1700
1600
1500
1400
1300
1200
1100
1000
CSM
PW
MT
DPW
STB
S&C
SA
S&M
900
800
AO
700
LL
FF
CC
JD
600
500
B&M
400
300
200
100
E
Incumbents
Full service
integrators
400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400 3600
No. of fee earners
London-1/1335846/2
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Questions
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