100 million-euro bill for business lawyers

The Romanian business lawyer that emerged as a symbol of capitalism after 1989 is now a small “powerhouse” with a productivity of 120-150,000 euros. The business lawyer, without whom there is no sale of the biggest bank or corporation, or the start of a business by an investor, contrasts with the image of the courtroom litigator, without excluding it.

“The market of business law services reached almost 100 million euros at the end of last year, driven by the substantial volume of mergers and acquisitions,” Florian Nitu, managing partner of Popovici & Asociatii law firm told ZIARUL FINANCIAR. He estimates the number of business lawyers at about 600.

The top-ten business law firms in Romania account for more than 40 million euros, which is almost half of the market.

Business law fees may vary from 50-60 euros an hour to 400-500 euros an hour and even more for the top lawyers or for partners, the highest position one can attain in a law firm. Sometimes, in the case of other law firms having a different organisation structure, the highest-ranking position in the firm is the associate position.

The private transactions and the privatisations conducted last year propelled Nestor Nestor Diculescu Kingston Petersen to the top spot among business law firms in terms of turnover, which revolved around 7 million euros.

Ion Nestor, the founder of NNDKP, was the lawyer retained by the state in the sale of Banca Comerciala Romana to Austrian Erste Bank, the biggest transaction on the Romanian market of the last fifteen years, 3.75 billion euros.

The only international giant operating in Romania, the London-based law firm Linklaters, is among the top firms in this market. The multinational elite in Romania has recently seen the addition of Salans, Schoenherr, Cameron McKenna and Gide Loyrette Nouel, the last of these having made 2.3 million-euro revenues in 2005.

Gheorghe Musat, managing partner of Musat & Asociatii, says the rate of growth of the market should reach somewhere around 20%. “One must not forget, however, that there is a tight interdependency between the business law operations and Romania”s economic development, therefore the economic factor needs to be taken into account,” Musat says.

“The year 2005 was marked by the transactions in the banking sector, but the market was also driven by the real estate, pharmaceutical industry and IT&C deals. We expect (the) infrastructure (segment) this year,” says Florentin Tuca, managing partner of Tuca & Asociatii.

The top twenty law firms, in terms of turnover, include Zamfirescu, Racoti, Predoiu, created by the merger of Calin Zamfirescu & Asociatii, run by Calin Zamfirescu – the chairman of the Union of Lawyers in Romania and Racoti-Predoiu.

The new firm”s turnover stands at 2.3 million euros. Other companies are David & Baias (which works with PricewaterhouseCoopers) – 1.6 million euros, Radu Taracila Padurari Retevoescu (1.3 million euros), Stefanica, Dutu & Partners, Sova & Partners (both of them with 1.1 million euros in revenues).