I pretendenti spagnoli finalmente convergono



European Markets SECOND MERGER FOR GOMEZ-ACEBO

Rodes & Sala's Barcelona office agrees to takeover after strategic U-turns

PRIOR to their recent merger, Gomez-Acebo & Pombo and Rodes & Sala had been strategically poles apart. Gomez-Acebo had called in the management consultants to conduct a review of business and was issued with clear strategic priorities. Rodes, less confident over its direction, courted a European alliance and an international merger in matter of few weeks before opting for an all-Spanish combination. When the two joined forces, it was clear that Rodes - 30 lawyers including six partners - was more vulnerable. The firm had lost important lawyers and found itself out of tune with Nabarro's European alliance, which it had joined just 18 months earlier along with Italian counterpart Nunziante Magrone. Rodes could make a number of claims about its practice, especially that 50% of its clients were foreign companies. Its books contain Antenvenio, Georgia-Pacific Services, Mercapital, Arcano Capital, GBS Finanzas Investment Bankers and Iberian Submarine Systems. Even so, a central question remained: would Rodes be best placed to service these clients as a Barcelona-based firm in an international alliance, as part of a global accountancy-tied giant or as a larger Iberian player? Rodes looked at all three options. It initially entered talks with Landwell, before rejecting a deal. Last spring it publicly stated that it still wanted to be independent and part of Nabarro's European alliance. Soon after it transpired that this was not the case after all when it emerged that discussions with Gomez-Acebo were underway. A deal was reached within a few months. On paper, very few top Spanish or Iberian firms locate the bulk of their practice in Barcelona with a handful of lawyers in Madrid, as Rodes did. Linking into a wider national network, such as those offered by Landwell and GomezAcebo, seemed more logical than a four-member alliance based in the UK, France, Germany and Italy. Rodes' Barcelona office (the small Madrid team was not included in the merger deal, see box) chose to be absorbed into a larger Iberian firm because the Iberian market is more domestically focused. For leading Spanish firms, strong local links are more important than broaching the international market. "For both us and Rodes, it was a perfect solution," remarks Gomez-Acebo's managing partner Manuel Martin. "They focused on tax and corporate matters in Barcelona yet only had a very small presence in Madrid. It was vital for Rodes to have the litigation, finance and public law offering too." For Gomez-Acebo, gaining a larger footprint in Barcelona was vital. The city represents an important industrial hub and the majority of the Spain's leading practices have a sizeable presence there. "We needed to strengthen our presence in Barcelona," Mr Martin continues. "I launched the firm's Barcelona office in 1990 and spent 11 years there before taking over as managing partner. The office had just 25 lawyers and, while profitable, we needed more lawyers to attract certain types of profitable deals and new practice areas." Gomez-Acebo had approached Rodes about a merger in 2001 but a clear business plan was decisive the second time round. During its 2006 review, Gomez-Acebo drafted eight clear lines of strategy. These ranged from partner performance and remuneration - the firm shifted from a pure lockstep to a modified lockstep - to non-organic growth, international presence and human resources. The overhaul resulted in a London launch (in 2007) and this year's two Spanish mergers (Gomez-Acebo also absorbed 18-lawyer tax boutique Padrol Munte). There are now plans to open in Portugal, firstly in Lisbon and then Porto to leverage off the trade with Vigo in Spain, by 2009. The 300-lawyer Spanish firm has been planning the Portugal opening for the last two years following its split from local ally Vieira de Almeida & Associados. During this time, it was linked to local player Barrocas Sarmento Neves. Sources previously identified Pedro Rebelo de Sousa from Simmons & Simmons as a potential target. Further afield, a New York outpost is also in the pipeline. "We approved a business plan three years ago and everything that has happened regarding the mergers and London launch have been part of that," Mr Martin continues. "It is important for the firm not to think in the shortterm but implement a long-term strategy instead." Rodes could have done with a sharper strategic focus after dallying with three different business propositions. The fact the firm explored all three is an indication of the difficulty that some independent regional practices find themselves in when looking at how best to develop the business. Gomez-Acebo, by contrast, was far more sure-footed. "Based on our business plan, the main focus is on increasing the level of specialization and productivity," Mr Martfn explains. "We don't care about size for the sake of size, either in volume of business or headcount, but maintaining a high degree of specialization and quality, we do want to be productive and profitable." Judging from Gomez-Acebo's success, the adage "come up with a plan and stick to it" appears sound advice.

"We approved a plan three years ago and everything that has happened [...] has been part of that"

Manuel Martin, Gomez-Acebo & Pombo Spain's top four Garngues Cuatrecasas Uria Menendez Gomez-Acebo Pombo