Canadian Lawyer

OP I N ION BY JIM MIDDLEMISS BACK PAGE Global law firms rule M&A list While global mergers-and-acquisi- tions activity trended down by 34.8 per cent in the first quarter of 2012, Canada fared much better, accord- ing to the Q1 league tables from Thomson Reuters. The value of Canadian deals was up C local law firms. anadian acquisition activity con- tinues to be golden, which is good news for merger-and- the firm ranked 16th overall for number of Canadian deals in the full year. In 2010, it ranked 51, showing marked improvement. When it comes to M&A rank- a healthy 87.7 per cent over the same period last year. Only Switzerland, North Africa, and Malaysia saw bigger percent- age increases. Most of the world saw siz- able decreases, according to the figures. In Q1, Canada saw 477 deals worth US$38.6 billion, up from US$20.5 billion at this time last year, despite almost 100 fewer deals. Bloomberg reports similar declines in global M&A activity, with deal counts hitting lows not seen since 2009. However, Canada's resource-based economy continues to defy global trends, making Canadian law firms attractive to acquirers (e.g. Norton Rose's hook- up with Ogilvy Renault LLP/Macleod Dixon LLP). Law firms hate rankings, (or at least the ones that don't make the top spot do) and many are quick to reject them. But until Canadian law firms wish to disclose or confirm their revenues and profits, pun- dits are left with rankings and directories, such as Chambers and Partners, which conducts extensive interviews of lawyers, to ascertain trends. Look at Chambers. Two years ago its 2010 directory listed four firms in its top M&A band: Blake Cassels & Graydon LLP; Osler Hoskin & Harcourt LLP, Davies Ward Phillips & Vineberg LLP, and Stikeman Elliott LLP. McCarthy Tétrault LLP and Goodmans LLP were in Band 2, while Torys LLP was listed as a Band 3 firm, along with Bennett Jones LLP and what was then Ogilvy Renault. Fast forward to 2012. Today, Torys and Goodmans are both Band 1 firms, while McCarthys sits alone in Band 2, a change that suggests momentum at Goodmans and Torys, which now has a Calgary office, and possible stagnancy at McCarthys, stantly sits near the top of deal lists from Bloomberg and Thomson Reuters. For example, it ranked 4th globally in Q1 for announced deals worldwide, ahead of firms like Skadden Arps Slate Meagher & Flom LLP and Sullivan & Cromwell LLP. Blakes and Bennett Jones also made the top 25 global list for Q1. Joining Band 3 are Cassels Brock & though the firm con- beyond Canada's borders hasn't hurt them. For example, in Q1 Blakes made the worldwide list for number and value of deals. It also ranked in the top 25 for deals involving Benelux, German, and French companies. Faskens made the list for deals involving Australia and New Zealand, Europe, and Asia Pacific (ex. Japan). Davies made the list for com- pleted deals involving Australia and New Zealand. McCarthys made the lists for French, German, and European deals, and Bennett Jones for German, Japanese, and European deals. Rankings are merely a snapshot in ings, Canadian firms are not con- fined to their home markets, but also make appearances in the top rankings involving other coun- tries. Interestingly, all of them have some type of foreign-office presence, suggesting that expanding Blackwell LLP and Fasken Martineau DuMoulin LLP. Norton Rose Canada LLP remains in Band 3, suggesting year one of the merger has yielded little. It will be interesting to see how it scores next year with the merger of Macleod Dixon. Noticeably absent from the 2012 list is Fraser Milner Casgrain LLP, which made Band 4 two years ago. Joining the Chambers list in 2012 benefited from its merger with Lang Michener LLP in 2011. Interestingly, Henderson LLP has not cracked the Chambers list in M&A (though it makes a number of other categories). Yet, Gowlings is making inroads on M&A, making the top 25 list Gowling Lafleur announced deals in Q1, 2012. In 2011, for worldwide 46 JUNE 2012 www. CANADIAN Lawyermag.com to have time. But looked at over a period of years they paint a picture. While Canadian law firms continue are Borden Ladner Gervais LLP and McMillan LLP, which seems to win the lion's share of the Canadian deal market, the reality is that global firms (firms present in more than one country, which includes a handful of Canadian firms) are hitting their stride and claiming more and more market share of the global M&A market. For Canadian whether to hook up with a global play- er interested in Canada (hello, DLA Piper), the time might be ripe to nego- tiate the best deal you'll ever get. Don't wait too long; markets are fickle. firms Jim Middlemiss blogs about the legal pro- fession pondering You can follow him on Twitter @JimMiddlemiss and he can be reached at jmiddlemiss@webnewsmanagement.com. at WebNewsManagement.com. sCott Page

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