H&Pmagazine How to be a leader in times of both crisis and prosperity - II/2020 - Havel & Partners
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PRAGUE | BRNO | BRATISLAVA | PILSEN | OLOMOUC | OSTRAVA
H&P
magazine
I I / 2020
How to be
a leader in times
of both crisis
and prosperity
Strategic thinking | Individual approach
Excellent legal team | Long-term partnership
I I / 2020
I I / 2020
magazine magazine
CONTENTS HAVEL & PARTNERS FOREWORD
BA N K I N G A N D TE C H N O LOGY IN FIGURES
5 Bank identity as a new dimension of trust
Dear Clients and Business Friends, second issue of our H&P Magazine. You
and commerce in the electronic world
will find a number of thematic articles,
BA N K I N G A N D TE C H N O LOGY The last few months have been a huge test interviews and analyses related to current
8 Services and the team
OUR TEAM
for all of us. The coronavirus pandemic societal topics, as well as interesting tips
6
has and will continue to have unprecedent- and presentations of some of our practice
R E A L E S TAT E
ed consequences in modern history. But as areas and our other activities.
9 How to approach investment in real estate Albert Einstein, perhaps the most famous
240
during the time of crisis?
scientist of all time, said: “In the middle of For example, we will share with you
R E A L E S TAT E
difficulty lies opportunity”. We, at HAVEL some proven tips on how to be a leader in
11 Services and the team offices & PARTNERS, approach the current crisis both times of crisis and prosperity. Our
in the same way as well. real estate team experts summarize for
FROM THE MEDIA you under what circumstances it is now
500
12 How to be a leader in times of both crisis lawyers and tax advisors When I say “we”, I mean all our more appropriate to invest in real estate. Our
and prosperity than 240 lawyers and tax advisors, as financing, banking and restructuring
TR AN SACTI O N S well as almost three hundred other team members have focused on address-
14 Overview of selected transactions involving colleagues who are involved in client care ing the consequences of the covid crisis in
HAVEL & PARTNERS consultancy services and running the firm. All of them, with companies. They explain how setting rules
employees maximum commitment and loyalty, have for preventive restructuring will simplify
S L OVA K I A been able to cope with the unfavourable and speed up the recovery of businesses in
18 Introducing the office circumstances that the Covid-19 pandemic difficulties.
brings about and turned them into
S L OVA K I A a challenge. Thanks to this approach, our However, the coronavirus and its conse-
OUR CLI ENTS
19 Procurement of quality legal services corporate culture, enormous efforts and, quences are far from the only topic in this
by the State – science fiction or reality?
2,500
last but not least, our top legal and tax issue. We will also acquaint you in detail
P R I VAT E C L I E N T S expertise, we are able to respond flexibly with one of the most trusted and most used
22 Jaroslav Havel: We even grow in times of trouble to all changes in the society, market needs, digital identification methods today – bank
and our clients’ requirements. identity, as our firm has been involved in
its implementation in the Czech environ-
P R I VAT E C L I E N T S
25 Services and the team
clients The fact that we manage to do it is also ment. In the article on telemedicine, we
50 100
evidenced by the awards we have received will look into the possible near future of the
F I N A N C I N G A N D I N S O LV E N CY this year: four awards and the absolute Czech healthcare system and clearly guide
victory in the Law Firm of the Year com- you through the fundamental changes
26 Preventive restructuring during
petition in the Czech Republic, which is that the major amendment to the Business
the coronavirus crisis
organized under the auspices of the Czech Corporations Act brings to the lives of
F I N A N C I N G A N D I N S O LV E N CY of the Czech Top of the largest Bar Association and the Ministry of Justice companies. Colleagues from our Slovak
28 Services and the team 100 companies Fortune
of the Czech Republic, three awards and office have prepared a very current topic
500 global
companies the historical success of our firm in the concerning awarding public contracts for
BOOKS legal services. We will also share with you
same competition in Slovakia, as well as
29 H&P supports the publication winning the most popular law firm among a diverse range of transactions that we have
of management books recently helped to conclude for our clients,
clients category in both countries, we also
TE C H N O LOGY / IT I NTERNATI O NAL APPROACH won the most prestigious global award, as well as tips on what management books
30 Telemedicine – 21st century healthcare Chambers Europe Awards, for the best law you should definitely not miss.
90
firm on the Czech market. In addition to
C O R P O R AT E L AW this, we were ranked the most sought-after I wish you not only useful and inspiring
32 Guide to the corporate world after employer and the most prestigious brand reading, but above all good health and
the amendment to the Companies Act in the field of legal services. This is HAVEL a great deal of optimism.
& PARTNERS’ score for 2020. At this point,
12
R E P O R TA G E
I would like to thank all our clients and On behalf of the entire firm,
34 Brno is one of the European cities with countries
worldwide business partners for entrusting us with
the largest real estate potential
both their business and purely private
PRO BONO matters, inspiring and motivating us to
36 H&P helps constantly move forward.
70%
world languages
H AV E L & PA R T N E R S ACA D E M Y Because in our view, the legal profession is
37 Overview of educational seminars not only about law, but also about commu-
nication, supporting awareness and shar-
COMMENT
ing useful know-how, we bring you the
38 People respect only reasonable laws
of cases with
an international reach Jaroslav Havel | Managing Partner
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magazine magazine
BA N K I N G A N D TE C H N O LOGY
HAVEL & PARTNERS is the absolute
winner of the Law Firm of the BANK IDENTITY
Year award in the Czech Republic,
confirming the most successful year
in its history AS A NEW DIMENSION
The law firm HAVEL & PARTNERS has followed up on its success
in the Chambers Europe Awards 2020, the most prestigious
global award for the best law firm on the Czech market, and
OF TRUST AND COMMERCE
IN THE ELECTRONIC
also became the absolute winner of the Law Firm of 2020 in
the Czech Republic. This year, the law firm won the main prize In response to the impacts
for the best Czech law firm and the award for the best client of the economic crisis, HAVEL
services. At the same time, it won in two sector categories –
& PARTNERS forms a unique team
WORLD
Mergers and Acquisitions and Competition Law. These are its
best results so far. HAVEL & PARTNERS also accomplished such focused on financing, restructuring
results in the Law Firm of the Year award in Slovakia where it and insolvency
received three awards, including the one for the most popular
law firm among clients. The current drop in the Czech economy resulted in the
financial problems many companies are now facing. Our law
“This is above all recognition of the top expertise, loyalty and firm has responded to this situation by merging the banking
utmost commitment of all our colleagues and their ability to cope and finance team with the team specialised in insolvency and
with all the adverse circumstances that Covid-19 brought about. restructuring. This is the largest professional team of lawyers
Therefore, they deserve great appreciation. I would also like to with experience in these fields ready to assist clients in
thank our clients for placing their trust in us when they approach financial difficulties and offer them the most comprehensive
us with their business as well as purely private matters and legal advice on the Czech and Slovak markets.
inspire us to keep moving forward,” commented Jaroslav Havel,
the managing partner of the law firm on its success in the Law “Our aim is to have a single closely cooperating team able to
Firm of the Year awards. address in a comprehensive manner all financing stages from
the actual drawing of a loan, addressing issues regarding its
repayment, potential debt restructuring, to insolvency,” said
HAVEL & PARTNERS records Jan Topinka, a partner in the law firm, who is one of the
mid-year services high managers of this special team. A number of leading foreign
law firms have in fact a similar setting.
Despite the Covid-19 crisis, the law firm achieved outstanding
economic results in the first half-year of 2020. In the first six For more information on our specialised team,
months, the firm’s turnover from net legal services marked go to page 28.
an 11.5% increase year-on-year. The revenues from net legal
services totalled CZK 388 million in the first half of 2020, while the
group’s total sales amounted to approximately CZK 500 million. All our lives we have been asked from time to time
to present our ID card, passport or other proof of Bank identity is
HAVEL & PARTNERS thus followed up on the remarkable economic
results from the previous year when its revenues rose by more identity. Therefore, it is hard for us to imagine that
than 11% year-on-year, and the sales of the entire group exceeded
soon this will no longer be required. But it’s time
expected to be deployed
the CZK 1 billion threshold for the first time. “The economic results
of the law firm marking once again over 11% growth indicate that for this to change. A whole new world of remote in the first half of
we have managed to keep the positive trend of two-digit growth
from last year. However, we are expecting a slowdown in the
second half of the year as a result of the impacts of the Covid-19
identification is emerging that will be automatic, 2021. Its appropriate
free of charge and instantly available to more than
pandemic. Nonetheless, even our pessimistic estimates count on and timely use may give
a slight increase in turnover and profit for the entire year 2020,” one half of all Czech citizens. Let us welcome bank
said Jaroslav Havel, the law firm’s managing partner.
identity, one of the most trustworthy and widely you an advantage over
used digital identification methods today. your competitors.
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Remote identity authentication used log-in with a single digital identity for world. Apart from that, studies show that businesses. Participating banks, and the How do Czechs rate data security?
diffidently so far dozens of user accounts across the Internet consumers prefer banks to government, fact that identification by means of bank
We got used to trusting our banks and (called single sign-on) or simple subsequent retail or social platforms as providers of identity will also be sufficient to comply Best secured data:
thanks to the permanent development of payment authorisation. Therefore, it will digital identity because they trust them, with the mandatory AML identification
electronic services and exponentially grow- not be necessary to remember different Czech consumers are no exception. standard for the use of government and Banks 84%
ing number of possibilities for their appli- log-in methods for e-shops and digital public sector on-line services, make bank
cation, we commonly procure our matters services or to fill in complicated forms. Thus, the introduction of bank identity in identity trustworthy. Therefore, we can Fintech companies 4%
online. But we still have not gotten used to Bank identity may thus bring up to the Czech Republic was inspired by the see the potential for its use primarily in
the idea that we can completely, reliably, 5.5 million potential users to the public and banking sector already in 2017. However, the financial sector as a single means for
electronically authenticate our identity at private sector whose identity will be easily Czech laws did not permit banks to provide on-line identification and payments. In
Internet browsers 3%
any time, remotely, without encountering authenticable at a distance. electronic identification back then. Norway, bank identity is used in more
other persons and without any waiting. The Czech Banking Association, as the than ¾ of all transactions in the financial Common e-shops 2%
representative of Czech and international sector. Thanks to the use of bank identity,
Under the Czech legal regulation of banks, approached the subject from the the average time required for processing Non-bank loan providers 1%
electronic identification there has been legislative point of view. With the help a mortgage application was reduced from
a state-run electronic identification means of the ICT Union, attorneys from HAVEL 16 days to several hours. Other 6% Source: Press release of the Czech Banking Association
– an electronic ID card – available for & PARTNERS and ROWAN LEGAL and
more than two years now. From the legal a group of active PMs from the public Bank identity will also become important
point of view, an electronic identity offers administration committee drafted Act no. for e-commerce in relation to a part of
a higher level of guarantee than bank 49/2020 Sb. Although this piece of legislation post-paid services such as fuel cards, ener- up a bank identity. All the rest can be done
identity, however, on the other hand it is constitutes an amendment to the Banking gy or telecommunications. The use of bank The Act on Bank Identity afterwards with its help, whether in the
necessary to make some efforts and invest Act, the AML Act and other laws, the most identity can thus also be interesting for mo- private or public sector.
some money – to purchase an electronic ID apt name for it is the Act on Bank Identity, bile operators or distribution companies. broadens the group of
card reader for instance. unofficially abbreviated as the BankID. It is expected that bank identity will be
Bank identity will also be very useful for activities that banks launched in the first half of next year. Its
BankID
Moreover, the possibilities for using an This act will enter into effect on 1 January eGovernment services – typical examples appropriate and timely use will undoubt-
electronic ID are unfortunately very limited.
The state is not the best promoter or trader.
2021. It broadens the existing group of
activities that banks are authorised to
include access to secured registers, portals
or files, electronic elections, commu-
are authorised to carry edly be a competitive advantage. The bank
identity may lead to increased efficiencies
This type of identity works only for persons
who must verify identity under law (such as
carry out by the provision of electronic
identification and authentication, services
nication with tax authorities, on-line
incorporation of a new firm and further
out by the provision of of processes for all participants – simple,
comfortable and gratuitous use of a single
obligated entities under the AML legislation)
or as a part of the exercise of official tasks
creating trust and other related services.
It will also enable banks (and insurance
applications during the gradual digitalisa-
tion of government services thanks to the
electronic identification means of identification and payment for
individuals, a competitive advantage and
(so called competencies). This is another
reason why the current electronic
Signing with the use of bank identity
Bank identity is at the same time an elec-
companies) to access the basic registers
and other public administration informa-
implementation of the Act on the Right to
Digital Services (no. 12/2020 Sb.).
and authentication, and interesting savings for service providers in
comparison with their own identification
identities have been used hesitantly and
infrequently in practice so far.
tronic signature method. It has already
proven to work well in Nordic countries. In
tion systems and to check whether their
clients’ data are up to date. Another domain for the application of bank
services creating trust solutions, the possibility for banks to get
closer to their clients and to provide them
Identify, authenticate, sign, and check
Norway, electronic identification and the
related signing with a bank identity is used If banks or branches of international
identity is employment – in particular in
the digitalisation of payroll and tax proce- and other related services. with more comprehensive services, and
a brand new gratuitous channel with mil-
But now a revolution in electronic identi- by nearly 90% of the working age popula- banks decide to provide these services, dures and to facilitate the recruitment of lions of verified users for the digital servic-
ty checking will come to fore with bank tion and even by up to 97% of the working they must enable, free of charge, electron- new employees at larger companies. es of the state, municipalities and regions.
identity. Thanks to bank identity it will be population aged 20 to 54 years. The first ic authentication of their clients’ identity
possible to electronically authenticate the Czech banks have already informed us also for the use of online services to state, Technological partners (ICT suppliers) Our digitalisation legal team, whose
identity of individuals (or select informa- that with the use of bank identity they will municipal and regional authorities. In capable of suitably connecting the banks must count on their technological members co-authored the Bank Identity
tion about them) with the use of secured enable signing electronic documents in exchange, banks will be able to provide bank’s electronic identification with their partners – typically in commerce, Act and participated in the development
access codes for internet banking. All that a trustworthy environment. For example, these services to the rest of the public sec- own services who will simply include electronic signatures, document keeping, of this solution from the very beginning,
without the need to remember any new Komerční banka already launched its tor and to commercial companies, weather the price for the use of bank identity log-in and identity management. will be happy to help you assess the de-
passwords or to have a special reader. service MůjPodpis (MySignature) several directly or via the new company Bankovní in the price of the service will assume tails of bank identity and implement bank
Clients will continue using only what they months ago. identita a.s., a joint venture of the three a key position. Naturally, banks cannot Visit a bank once in a lifetime – to identity means.
are familiar with very well – internet bank- largest banks on the Czech market – Česká appropriately help their clients integrate setup a banking identity
ing log-in via a computer or mobile phone. In addition, bank identity will also involve spořitelna, Československá obchodní ban- the solutions in preparation (as they In the Czech Republic this will be the
Nothing else. In addition, the user will not a control aspect – anyone will be able to ka and Komerční banka. The price for the possess only limited technical knowledge), uniform, and by far most frequent, solu-
pay anything for such authentication. check where and for what purpose their use of electronic identification, authenti- cannot provide technical support for these tion for digital identity authentication,
bank identity was used. cation or signing services will not be paid solutions and often identify use cases in taking the way in which society works
In this connection, Czech legal regulations by the end user but by the service provider which bank identity can be used outside the to a whole new level. In Norway they say
use the term electronic identification Banks enjoy trust (retailer), who uses the service to identify banking sector. Thus, in the distribution with exaggeration that a bank needs to be
means – a simple alternative to physical Inspired particularly by Nordic coun- their clients. A similar set-up for payment model of services relating to bank identity, visited only once in a lifetime – just to set
identity documents for individuals’ digital tries, bank identities are a well-tested and cards has been in place for many years.
acts in the online world. Thus, these include functional concept – banks own the basic
acts in the public as well as the private infrastructure and have their clients, at the Bank identity as a business
sector. But bank identity will not only be same time they are the only institutions on opportunity
about authenticating and transferring the market to have already authenticated Providers of e-commerce and services Robert Nešpůrek | Partner
client data with the client’s consent. It will the majority of individuals and transferred will be willing to invest in bank identi- František Korbel | Partner
Dalibor Kovář | Managing Associate
also offer users a simple and comfortable their identity via bank identity to the digital ty only if they can see benefits for their
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R E A L E S TAT E
TECHNOLOGY LAW
SERVICES HOW TO APPROACH
Technology law is one of the most significant areas
Robert Nešpůrek | partner
INVESTMENT IN REAL ESTATE
DURING THE TIME OF CRISIS?
HAVEL & PARTNERS specialises in. Our team
comprises over 30 lawyers, making it the largest
team on the Czech and Slovak markets in this
field of law. Our clients include the largest IT and
telecommunication companies, financial institutions,
retail chains and media companies but also Jan Diblík | partner
public administration authorities
and prospective start-ups.
Thanks to efficient specialisation and profiling
across all fields of technology, we are able to
provide professional advice in the following areas:
Štěpán Štarha | partner
Software development, implementation
and support agreements (SLA)
Licensing and ensuring rights to the software
for its authors, rights holders and investors
IT (including domain) litigation before courts,
out-of-court settlement of disputes
František Korbel | partner
Fields of the future: e-banking, m-banking,
crowd funding, technologies in financial
services (FinTech), digitalisation of legal
processes, etc. Over the last ten years, increasing numbers of people
have acquired real estate as a form of investment. As Attractive income
a matter of fact, immovables are a reasonable asset can be generated not
to invest in to protect one’s property from devaluation
firm only from residential
Our law Petr Kadlec | partner by inflation. This remains true now, at the time of
rt i n properties, but
took pa economic crisis caused by the coronavirus pandemic;
t h e Bank The Bank Identity Act enables banks to provide electronic
draft i ng identification, authentication, and trust services. This
however, thorough consideration should be given also from logistics-
Act.
Identity
should make it possible to use bank identity to log in to use to what type of immovable property to invest your
public digital services, to enter into and sign energy supply
money in. Our real estate market experts explain
related immovables
agreements online or to authenticate one’s identity with an
on-line betting office. The professionals from the IT law team
which properties continue to provide a suitable and investments in
at HAVEL & PARTNERS took part as advisors in drafting the
act, which will enable bank identity to be used widely in the
Czech Republic.
investment opportunity for protecting one’s wealth. real estate funds.
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magazine magazine
Mortgages are breaking the record
Interest in immovables designated for
housing has been confirmed by the
market. The most dramatic decline in rent
has taken place in Prague – by up to 20%.
The market has been flooded by thousands
In addition to traditional real estate funds,
real estate investment start-ups have been
recently emerging. The latter primarily
REAL ESTATE
amount of loans provided. The mortgage
market is breaking historic records. In
September 2020, banks provided mort-
of empty flats that had been offered by the
owners for short-term rentals via Airbnb;
this, of course, has pushed rents down in
target young investors. Thus, some com-
panies now enable small investors to par-
ticipate in providing loans to developers
AND CONSTRUCTION
gages worth more than CZK 22 billion,
which is CZK 7 billion more than in
September 2019. The number of pro-
general.
We nonetheless believe that this is just
for the construction of real estate projects
(crowdfunding), or companies that use the
deposited money to buy flats and subse-
SERVICES Jaroslav Havel | managing partner
vided mortgages keeps growing too – in a temporary phenomenon. Because quently pay out shares in rental revenues
September, there were 1,000 more than increasing numbers of people will not be to investors.
in August. Overall, Czechs contracted able to buy their own homes due to the HAVEL & PARTNERS’ experienced team for real
housing mortgages worth CZK 172 billion crisis, it is reasonable to expect growing Office space
during the first nine months of 2020, demand for medium-priced rental housing Prudence is currently recommended when estate, construction and environment law consists of
more than for the same period in the in the following months, at or around CZK investing in real estate in the office space
record-breaking years 2016 and 2017, when 25,000 per month. Indeed, some large de- market, which is about to undergo certain
more than 30 lawyers, including 7 partners, and is thus
the amount of mortgages sold eventually velopers have responded to this projection changes in connection with the present one of the largest specialised real estate law advisory
reached CZK 226 billion for the whole year. and are designing residential projects for situation. This is why many investors are
long-term rentals. now waiting. The office space vacancy rate teams. In the area of legal and tax services provided in Václav Audes | partner
This shows that Czechs are not afraid of has been around 5% for several years and
investing in housing properties even in Logistics and industrial parks is expected to somewhat increase after the relation to real estate, we have a substantial share of
uncertain times. This is also due to the The logistics segment has been consistently pandemic. Therefore, numerous compa- the Czech legal market; we have been involved in the
fact that the prices of mortgages keep growing in the Czech Republic over recent nies are very pragmatically contemplating
going down, with interest rates around years. This year is no exception. Due to reducing the size of the office space they major projects of recent years.
2%. Other factors encouraging investment the pandemic, resellers have been quick are using under lease or subletting those
in housing are that the Czech National to leave brick and mortar shops, moving parts they will be unable to fully use.
Bank has alleviated lending rules, and that to the online environment. In March, for
the real estate acquisition tax has been example, the e-commerce segment grew Consequently, we are now engaging in
abolished. by 40%, while similar developments can complex negotiations to agree on new International rating publications rank us Lukáš Syrový | partner
be expected with the second wave of the lease terms and conditions for existing as the leading law firm for construction
Residential housing pandemic. Based on recent estimates, the office spaces. These renegotiations relate and real estate law transactions completed
Despite the first and second waves of the turnovers of Czech e-shops even could to both the leased floorage and the rent. in the Czech Republic. In 2018, we were
coronavirus crisis, demand for high- exceed CZK 200 billion. These fast-growing Despite the anticipated changes, we awarded Best Law Firm for Real Estate
quality residential housing remains stable businesses are naturally interested in nonetheless believe that the construction and Construction in the CEE Region by
in the Czech Republic. This is particu- whole logistic parks. of new office buildings will continue at Acquisition International magazine.
larly true in Prague, where demand still a similar pace.
exceeds supply. In autumn of 2020, the Hence, logistic facilities and industrial Our legal services in the area of real
average price per m2 remains above CZK parks are extraordinarily attractive for in- Retail estate law and construction law include
100,000, e.g. 9% more than last year. We vestors as a result of the pandemic shock. The retail market has been severely affect- in particular:
also expect that the prices of residential At HAVEL & PARTNERS, we advise clients ed by the coronavirus wave. The transition Josef Hlavička | partner
properties in Prague will keep growing. what to invest in, including specialised of customers from brick and mortar shops
real estate investment funds, which are to virtual e-shops has gained strong dy-
Outside of Prague, the prices have not becoming more and more popular with namics and this trend may further develop
been increasing so fast, but still the real investors. with the second wave of the coronavirus
estate bubble has not popped as a result of pandemic. In this context, it is reasonable legal due diligence of real estate
the pandemic, and prices remain stable, Investments in funds to expect that new retail space will not be
particularly for high-quality properties. Real estate funds, or real estate investment added at a fast pace, but instead that some purchase and sale of real estate
Thus, flats can provide an ideal opportu- funds, besides offering investment oppor- shopping malls will be consolidated and and lease of residential, office, wholesale,
nity for private and corporate investors tunities in the amount of millions of Czech possibly sold. Of key importance here will retail and industrial premises
alike to invest their money and secure crowns, currently make it possible to invest be the customers’ satisfaction with the
stable revenues regardless of the currently thousands, or merely hundreds of crowns brands and stores the shopping malls will complex sale transactions and real estate leasebacks František Korbel | partner
unfavourable economic situation. in immovable properties. It is nonetheless be able to offer, as well as the quality of the
advisable to find out what type of property blend of goods and services offered. advising on greenfield and brownfield projects,
Rental housing market the fund invests in – residential or office including turnkey projects
On the other hand, the coronavirus has space; this has an impact on the return on
strongly affected the rental housing investment, and potential risks. advising on the development and regeneration of industrial
real estate (brownfield investments)
investment projects and their financing
zoning regulation Josef Adam | counsel
Václav Audes | Partner
Lukáš Syrový | Partner
addressing problematic issues arising in construction
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FROM THE MEDIA
Be as close to the client
HOW TO BE A LEADER IN TIMES as possible
An individual approach to the client,
Develop comprehensive personalities
OF BOTH CRISIS AND PROSPERITY understanding his/her needs, build-
with a managerial approach
ing mutual trust and long-term, stra-
You will be able to understand how the client thinks and what his/her
tegic partnership. In our view, this
expectations are if you are able to look at the matter from his/her mana-
represents the legal profession.
gerial and business perspective.
HAVEL & PARTNERS has for 10 years been the largest and, according to the Law Firm of
Technology will make it much easier for
the Year competition, also the most successful Czech-Slovak law firm on the market. It has you, but the legal profession, as we per-
We make sure that our lawyers are constantly educating themselves not
only in law and individual fields of business, but also in areas such as
also received awards for an exceptional brand, economic stability and is the most sought- ceive it, will always be primarily about
business, management, marketing and finance. With this knowledge, they
people. Both about talented lawyers on
better understand not only the functioning of our firm, but also our clients’
after employer in the industry. In 2019, the revenues of the entire HAVEL & PARTNERS the one hand and their professional,
needs. At the same time, such knowledge opens the door for them to elite
personal client approach, which cannot
group reached billions of crowns, and according to the semi-annual economic results, the be replaced with any technologies, as
managers and business owners, with whom our lawyers can more easily
establish long-term cooperation. Thanks to this comprehensive managerial
firm is growing in double digits in 2020. How did the firm gain and maintain its leading well as about satisfied clients. Our base
approach, we can also connect our clients and business partners with each
of more than 2,000 clients, which is the
position in the legal services market? Here are some of the best practices it follows. most stable on the market, is the best
other, we help them with new business opportunities and their financing,
with contacts abroad or personnel.
proof that we are doing it well.
Be prepared
Help
More than ever, recent months have confirmed the importance of being Keep up with technological developments
We cannot provide our legal services without prepared and adapting to changes as quickly and best as possible, even to
it. Being a leader in any field means accept- sudden and unpredictable ones. If you succeed, you will have an advantage. Even in the initially conservative law profession, you will not survive if you do
ing this role, including responsibility to soci- not constantly keep pace with technological progress. Among other things, the
ety and those who do not have it easy in life. Based on macroeconomic data and historical experience, we were ex- use of technology will give you more space to employ “human capacity”, espe-
pecting a crisis with a major impact on the economy for a long time, and cially for complex cases and building relationships with clients.
We have our own foundation, dozens of as early as in the course of 2018 we began to prepare for it. We focused on
non-profit organisations and projects to which increasing work efficiency, supplementing our portfolio of services and Here, too, we learn from the best, whether it is our internal systems, client file
we provide legal services, financial assistance, technologies, and, last but not least, on consistent financial management management, CRM, software for administrative and simple legal tasks, or means of
or have included among our suppliers. When and the creation of reserves. We worked to accelerate cash flow, increased distance communication. We have a long-term digital strategy; we focus on online
the crisis came, we helped them with the same the share of services for clients in anticyclical fields, and the overall marketing and data mining. Thanks to our robust technological background, in times
commitment as that to our clients. We did not efficiency and performance per lawyer. Even though the crisis hit us in of the state of emergency, about 500 of our colleagues were able to move from day to
wait for them to contact us, but we asked them a completely different form than we expected, we had something to build day to the home office and provide services with the same speed and value, including
how we could help. We have also doubled on and we were able to response almost immediately. online training and workshops. We even virtually “went for one beer” together.
our financial assistance and the number of
pro bono hours. In recent months, however,
it has not been easy for anyone, so we have Be positive
made our know-how publicly available, set
up a comprehensive information service for Take all situations and circumstances – even Learn from the best
the public, and provided our legal advice free negative ones - as a challenge and an opportunity
of charge in a number of online counselling to be better. If you come across a proven trend, inno-
centres, as well as other assistance. vation or business model and conclude
A positive “mindset” is not only helpful inside the that it could work in your conditions,
company but also an extremely important part of incorporate it into your practice.
finding the best solutions for our clients.
Build teams by business sectors In the global context, we are still a rela-
tively small firm. We have no ambition
Providing top-level legal and tax services requires not only excellent knowledge of regulations and to invent something from scratch. We
the ability to apply them, but also broader knowledge of the relevant business sector of your clients. make a great effort to monitor foreign
trends, analyse data, perform syntheses
Thanks to our size, we were able to create a law firm management system not only according to legal and select what could work. Moreover,
specialisations, but also according to business sectors in which we are constantly monitoring their spe- and this may distinguish us most from
cifics, development and trends, personnel and transactions. This organizational set-up aims at the most our competitors, we are not afraid to also
efficient provision of legal services, where complex projects are managed by senior lawyers having ex- seek inspiration in other fields, such as
tensive practical experience with the support from specialists in the relevant legal fields. We have again large consulting firms, private banks or
seen how important it is to know your client’s business very well during the Covid-19 pandemic, when we technology companies. We also learn
were able to help our clients, in the context of knowledge of their industry, basically immediately. from many of our clients.
The article was published in E15 as part
of the Legal Disruptors project.
12 13
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magazine magazine
TR AN SACTI O N S
PL ANET A
OVERVIEW OF SELECTED
Sale of Planet A, provider of internet
connections
TRANSACTIONS INVOLVING
The HAVEL & PARTNERS team, led by Václav Audes (Partner), provided legal
advice to Planet A on the sale of 100% shares to T-Mobile Czech Republic.
HAVEL & PARTNERS
Planet A is a major internet provider in Prague and Central Bohemia, and the
operator of Kuki on-line TV. In October 2019, Planet A became a subsidiary
of T-Mobile. By virtue of this acquisition, the Czech Republic’s largest mobile
CONSULTANCY SERVICES
operator has further strengthened its position as the market leader.
The sale was effected through a public tender.
2 JCP
Over the past 15 years our law firm has been Comprehensive legal advice on the
15
years
involved in the completion of 700 transactions
in, but not only in, the area of mergers,
acquisitions, divestitures, and restructurings.
acquisition of a supplier of gas turbine
components
HAVEL & PARTNERS provided comprehensive legal advice to 2 JCP
in connection with a major acquisition in the engineering industry.
The aggregate value of those transactions A 70% interest in 2 JCP was acquired by JET 2, an investment fund
700 27 exceeded CZK 700 billion. Below please within the Jet Investment group owned by Igor Fait, a financier
based in Brno, Czech Republic.
find an overview of the most important
The team providing legal advice to 2 JCP included senior members
transactions EUR billion transactions for the recent period. of the M&A team– Jan Koval (Partner), Robert Porubský (Managing
Associate), and Ivo Skolil (Associate).
2 JCP provides filtration and noise control solutions to leading
MOUFLECO HOLDINGS LIMITED manufacturers of gas turbines. The company, with more than
300 employees, has a manufacturing plant at Račice, Czech
Advising Moufleco on their Republic, and two representation offices in the U.S. and the United GENESIS CAPITAL GROWTH
exit from TEDOM, a Czech Kingdom. By means of this acquisition, Jet Investment sought to
engineering company further strengthen 2 JCP’s position in the gas energy market. The Advising on the acquisition
parties chose not to disclose the value of the transaction. of a company providing
The legal team of HAVEL & PARTNERS advised healthcare-at-home services
a foreign shareholder, Moufleco Holdings Limited, on
the corporate settlement among former shareholders The M&A team of HAVEL & PARTNERS, led by Václav
and top managers of TEDOM, a major Czech MT X GROUP
Audes (Partner), working closely with the Banking
engineering company. & Finance team led by Filip Čabart (Partner) and
HAVEL & PARTNERS advised on the the Life Sciences practice group represented by
The transaction entailed the sale of a 45% stake held acquisition of a share in Strojmetal Veronika Filipová (Senior Associate), delivered
by Moufleco in TEDOM, a manufacturer of gas-fired comprehensive legal advice to the Genesis Capital
cogeneration boilers, i.e. units for the cogeneration The HAVEL & PARTNERS team, led by Václav Audes (Partner), Growth fund on its acquisition of 100% shares in
of electricity and heat. The shares were acquired provided legal advice to Mr Petr Otava’s holding company MTX Home Care Promedica.
by the ČEZ group. Our firm’s comprehensive legal Group on the acquisition of 45% shares in the Strojmetal group.
advice included structuring the transaction, which The major Czech industrial holding MTX Group thus acquired full Home Care Promedica (HCP), with a team of its
comprised the shareholder’s exit from the company control over a corporate group manufacturing suspension parts own qualified nurses, provides specialised care to
and settlement of legal relations. for global brands such as Mercedes, BMW, Ferrari, and Rolls-Royce. patients in their homes. The company was acquired
by the new CEO, Mr Ondřej Jež, jointly with Genesis
The HAVEL & PARTNERS legal team advising the client The acquisition of the share in the Strojmetal group by MTX Capital Growth, a growth capital fund focusing on
on this transaction comprised Václav Audes (Partner), was a solution of disagreements between MTX and the other investments in fast-growing small and medium-
Silvie Király (Managing Associate), Kateřina Surková shareholder, which resulted in the other shareholder’s exit. sized enterprises in Central Europe.
(Senior Associate), and Josef Bouchal (Junior The execution of the agreement effectively settled all disputes
Associate). between the parties. The parties chose not to disclose the value of the
transaction.
The parties chose not to disclose the value of the transaction.
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magazine magazine
WÜSTENROT & WÜRTTENBERGISCHE AG SLOVAK TELEKOM
Advising on one of the largest HAVEL & PARTNERS advised
transactions in the Czech on the sale of Zoznam
mortgage market
The M&A team of HAVEL & PARTNERS added
The HAVEL & PARTNERS team, led by Jan Koval (Partner), another transaction to its portfolio of successfully
represented Wüstenrot & Württenbergische AG on the closed deals in the IT & Telecommunications
sale of Wüstenrot – stavební spořitelna and Wüstenrot sector in Slovakia. Dedicated M&A specialists
hypoteční banka to MONETA Money Bank. provided comprehensive legal advice to
Slovakia’s largest telecommunications operator,
MONETA acquired 100% shares in Wüstenrot – stavební Slovak Telekom, a member of the Deutsche
spořitelna and 100% shares in Wüstenrot hypoteční Telekom (T-Mobile) group, on the sale of Zoznam.
banka for a purchase price exceeding EUR 180 million, i.e.
more than CZK 4.5 billion. The sale of the two companies Zoznam is a major Slovak provider of online
content, operator of the zoznam.sk portal and ŽELEZIARNE PODBREZOVÁ
was one of the largest transactions on the mortgage
Topky.sk news server. The company was sold to
market in the Czech Republic in 2019.
incumbent managers of Zoznam.
Capital investment of Železiarne
The services delivered by HAVEL & PARTNERS entailed IMECON CONTAINERS
Podbrezová in TOM-FERR
comprehensive advice to WW, including assistance The transaction was handled by the Bratislava
in organising the tender procedure. The transaction Advice to a manufacturer of office of HAVEL & PARTNERS, primarily Ondřej The HAVEL & PARTNERS dedicated M&A team
provided comprehensive legal advice to Železiarne
was subject to the consent of regulatory authorities – accommodation, storage and Majer (Partner) and Ivana Gajdošová (Associate).
Podbrezová, a major Slovak engineering company,
the Czech National Bank and the Czech Office for the technology containers on its capital investment in Hungary’s TOM-FERR.
Protection of Competition.
The advice also related to concluding an investment
HAVEL & PARTNERS professionals from the dedicated agreement.
M&A team delivered comprehensive legal advice to
IMECON Containers, member of the Oriens IM Hungary Železiarne Podbrezová, a company with a 180-years
Group, in connection with the acquisition of PEGAS tradition, is a major European manufacturer of steel
CONTAINER and Sharkmetal from a private owner. and seamless steel tubes, selling its products in
50 countries around the globe. The privately owned
The transaction resulted in the concentration of the two Hungarian company TOM-FERR, based in Budapest,
target companies within the portfolio held by Oriens, one is the largest supplier of steel tubes in Hungary.
of the largest manufacturers of containers in the Czech
Republic and neighbouring countries. The transaction had a strong international element.
GUIDEVISION The specialised team, which provided comprehensive
advice on all aspects of the transactions, was led by the INNOFRE IGHT CONSULTING & LOGISTICS
Sale of the Czech company firm’s partner, Václav Audes. The transaction, worth
GuideVision to the Indian IT nearly 29 million euros, comprised two complex stages of
Formation of a joint venture
company Infosys external financing. by INNOFREIGHT and BUDAMAR EATSTER
LOGISTICS
HAVEL & PARTNERS, the largest Czech-Slovak law Representing a mobile app
firm, provided comprehensive legal and tax advice HAVEL & PARTNERS delivered full legal advice to start-up on the entry of investors
to the Prague-based company GuideVision, provider Austria’s INNOFREIGHT Consulting & Logistics into the company
of consultations, implementations, training and GmbH on the formation of a joint venture with
support to the customers of ServiceNow, one of the Slovakia’s BUDAMAR LOGISTICS. HAVEL & PARTNERS lawyers represented Eatster,
most successful cloud platforms. GuideVision was a Slovak start-up, in the course of negotiations regarding
acquired by Infosys Limited, an Indian company with Austria’s INNOFREIGHT operates in 14 countries and the entry of investors into this dynamically growing
over 242,000 employees and one of the largest IT is in the vanguard of development of innovative company which developed a mobile application for
companies worldwide. railway cars, containers and unloading systems. The online meal ordering in Slovakia.
new joint venture, BUDAMAR INNOVATIONS, engages
The M&A legal team, led by Jan Koval (Partner), in transportation of iron ore from Ukraine and Russia Upon a venture capital investment by Vision Ventures
comprised Veronika Filipová (Senior Associate) and to the Czech Republic. The transaction was subject into Eatster, the legal team provided comprehensive
Ivo Skolil (Associate); employment-related matters to clearance by antitrust authorities. The companies legal advice including the drafting of contractual
were handled by Vojtěch Katzer (Senior Associate); each hold a 50% interest in the joint venture. documentation and the closing of the transaction.
and Josef Žaloudek (Counsel) supervised the tax The Vision Ventures group manages a venture capital
aspects of the transaction. fund, Vision Ventures Growth I, making investments in
excellent companies with international ambitions.
The value of the transaction was EUR 30 million.
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magazine magazine
S L OVA K I A
INTRODUCTION
OF THE SLOVAK OFFICE In 2016, 2017, 2019 and 2020, the
Bratislava office was included in PROCUREMENT
OF HAVEL & PARTNERS
the prestigious ranking of the ten
OF QUALITY LEGAL
largest law firms in Slovakia, which
is compiled annually by The Slovak
Spectator in cooperation with SME
daily and FinStat.
The Slovak office of HAVEL & PARTNERS has
been operating in Bratislava for over ten years. 2008 SERVICES BY THE
STATE – SCIENCE
Currently, it is one of the six offices forming Bratislava office established
in 2008
an integrated unit of the HAVEL & PARTNERS
law firm and the main contact point not only
for Slovak clients but also for Czech and foreign
clients doing business in Slovakia. 30 FICTION OR REALITY?
30 experienced Slovak lawyers
Key contacts:
Jaroslav Havel,
Ondřej Majer,
Robert Neruda,
Štěpán Štarha Main contact point for Slovak clients as
well as for Czech and foreign clients doing
Zuckermandel Centre business in Slovakia and for Slovak clients
Žižkova 7803/9 doing business in the Czech Republic
811 02 Bratislava
300
Over 300 long-term clients Currently, one topic discussed in Slovakia is the
efficiency of the procurement of legal services by
the State. We have learned from the media about
budget savings associated with the termination of
unfavourable contracts, and at first glance it seems
Did you know that
Best Client Services award and first place
in the categories Mergers and Acquisitions that only the lowest price offered by a legal service the EU outsources
and Energy and Energy Projects for
2020 in the prestigious Law Firm of the
Year competition, six-time holder of the
provider is the right evaluation criterion. However, legal services with
global M&A Today Awards for Mergers and
Acquisitions for 2013–2018
when a person has a serious health problem, he/ a weight of only
she is usually not looking for the doctor who will
perform the cheapest operation, but the one who
30% price and 70%
will do it best. We will explain why the same quality? In Slovakia,
should apply when selecting legal services. it is the opposite.
18 19I I / 2020
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magazine magazine
Is the lowest price the only right
evaluation criterion?
due to limited experience in dealing with
a given type of cases, he/she is usually less The lowest hourly rate
The Slovak Prime Minister has himself efficient and the work itself will take more
does not even have to
The most successful year in the
criticized in the media the use of external time compared to a specialist. Therefore,
2020
law firms by the State due to allegedly the client can subsequently pay the same
overpriced prices. At the same time, he or even higher price for the legal service mean the lowest total
has announced a plan to establish a “state
law firm with the best lawyers”, which
should represent state authorities in
provided than in the case of another pro-
vider which, although it originally offered
a higher hourly rate, will spend signifi-
price that the client history of HAVEL & PARTNERS
possible disputes. It is certainly true that
the lowest price criterion is appropriate
cantly less time addressing the matter.
Therefore, in our opinion, it is not right
will pay for the service Thank you!
for supplies of generically and qualita-
tively interchangeable goods, in which
to organise a tender for professional legal
(or, in general, also consulting) services provided.
a comparable quality of performance from exclusively with a single criterion that is
individual suppliers (e.g. utilities, food, the lowest price.
etc.) can be expected when specifying
corresponding parameters. However, the Combination of evaluation criteria
question is whether it is also possible to The level of the price of professional when he/she has problems. If a person
procure in this way legal or consultancy services depends to a large extent on the has a serious health problem, he/she is
services that the public sector procures costs of professionals working for a re- usually not looking for the doctor who will
from its external advisors, as their com- spective firm; the better employees such perform the cheapest operation, but the
plexity goes beyond the normal agenda of a firm hires, the higher the costs of their one who will do it best. Similarly, a pru-
in-house specialists. remuneration, which is also reflected in dent businessman primarily approaches
the price of the service. Therefore, it is experienced and capable professionals to
If a client from the private sector decides desirable to select a legal counsel using ensure success in his/her matter and not to
on the selection of professional advisers, a combination of a wider range of criteria, risk losses or reputational risks.
he/she is interested not only in the price where the assessment of the quality of the
of the services offered, but also in the service offered has much greater weight. Top lawyers have a quality education and
method they are provided, the advi- spend a lot of time on demanding transac-
sor’s references, the team composition, Only this solution will lead to the selection tions and cases. At the same time, the ex-
and the advisor’s specific knowledge and
expertise. The client’s interest is primarily
to achieve a 100% result in terms of the
of the most cost-efficient solution. At the
same time, such a solution will make it
possible to eliminate the risk of selecting
perience, knowledge and references of top
lawyers are the “variable” that will help
the client achieve a 100% result in terms
ABSOLUTE WINNER
scope and quality of the service, while
excluding or minimizing any future risks.
This is clearly true of matters of great
an insufficiently qualified or technically,
economically, personally or otherwise
equipped counsel for a given public
of the scope and quality of the service,
as well as time efficiency of its provision,
while minimizing any future risks.
OF THE LAW FIRM OF
THE YEAR COMPETITION
importance to the contracting authority, contract.
in which any possibility of failure must Unfortunately, a brilliant brain is not
be minimized or ruled out (disputes over Public contracts on the principle of a measurable value that you simply put
AND THE BEST CLIENT
extremely high amounts and values or the prevailing qualitative criteria (over in the tender documentation. However,
highly specialised activities). If the output the lowest price) are also awarded by in law practice, it is the most important
of the ordered service is to be a profession- European institutions, including the factor, together with loyalty to the client,
SERVICES IN THE CZECH
al legal assessment or recommendation European Commission. The EU awards encyclopaedic knowledge of the law, and
in such a fundamental matter, it is quite public contracts for legal services with the willingness to work hard, especially in
clear what the difference is between the a weight of only 30% price and 70% quality cases where lawyers work for the State or
REPUBLIC AND SLOVAKIA
assessment or recommendation prepared – in the Slovak Republic it is the opposite, the public sector.
by an average expert compared to that of while mostly 70–80% of the evaluation
a respected specialist. is the price and the maximum (if at all)
remaining 30–20% is the quality.
The paradox of the lowest hourly rate
In the end, paradoxically, the lowest Focus on the outcome of the service
hourly rate does not even have to mean the provided over the price
lowest total price that the client will pay The client needs a lawyer who will win the
for the service provided. If a lawyer is not dispute at the end of the day, save costs
a specialist in a specific legal area, then or otherwise help him/her effectively
THE BEST LAW FIRM
Štěpán Štarha | Partner
IN THE CZECH REPUBLIC
Ján Kapec | Senior Associate
20 21I I / 2020
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magazine magazine
P R I VAT E C L I E N T S
H
e has been building his team maximum support from the very first day.
for private and often also the Our achievements this year confirm that
wealthiest clients for twelve years we have managed this well. This makes us
already. For quite some time now, even more grateful for our success in such
this no longer means merely legal or tax ad- hard times. On the other hand, for our cli-
vice. Instead, he links business people with ents, this is a confirmation that they are
one another, handles their private invest- cooperating with the best law firm on the
ment matters, helps them with their private market that is a leader not only in times
issues and now also with the impacts of of prosperity but also in times of crisis,
the pandemic. “We got ready for the crisis capable of efficiently assisting our clients
sufficiently in advance. When it hit, we with the reverberations of the crisis.
“We got ready for had something to build upon and therefore
we could immediately focus our attention Were you also able to cope well
the crisis sufficiently on our clients,” said Jaroslav Havel, the
managing partner at HAVEL & PARTNERS
with the economic crisis in the
2008–2012 period?
in advance. When it attorneys-at-law, for which 2020 is the most
successful year in its history.
At that period, our company made a great
leap. We won over hundreds of new
hit, we had something Recently, you have labelled 2020 the
clients, new lawyers from our competi-
tors joined our firm and we became the
most successful year in the history of largest Czech-Slovak law firm in terms
to build upon and your law firm but it is also the year of of the number of lawyers and clients.
the global pandemic and a big global Those were very tough times, though. The
therefore we could crisis. Are these two things somehow
interconnected?
firm’s management carried out a complete
restructuring of the corporate business
immediately focus This year is exceptionally good for us
in terms of economic results, newly Since our founding in 2001, model in only six months. The company
turned from a high-margin transaction
our attention on our recruited colleagues and awards. We won
the Chambers Europe Awards, the most we have been growing law firm with two main specialisations
focused primarily on international clients
clients.” prestigious global award for the best law
firm on the Czech market and we became every year in terms of
and the international market to a compre-
hensive company with a diversified offer
the absolute winner, well ahead of the of services for clients operating mainly in
other competitors, of the Law Firm of the
Year in the Czech Republic. We marked
turnover, personnel and the Czech Republic and Slovakia, includ-
ing solutions in public tender regulations,
the same historic victory in Slovakia. The
sales generated by HAVEL & PARTNERS
the quality and scope of litigations and insolvencies.
in the first half of the year were up by 11%
year-on-year. Although we are expecting our services. In the early stages of the crisis, we re-
corded greater demand for legal and tax
a certain slowdown in connection with services linked to the administration and
the impacts of the pandemic, even our protection of private and family property.
pessimistic scenario expects a growth That is why in 2008 we formed, as the first
of annual turnover and profit in 2020 by law firm on the market, a specialised team
JAROSLAV HAVEL: approximately 10%.
Needless to say, these achievements
Being the biggest law firm in Central
Europe, we think it is absolutely crucial
to be fully prepared to address emer-
for private clientele, which we gradually
expanded with other experts from among
our colleagues to be able to provide our
WE EVEN
are linked to our company’s continuous gency situations and be ready to react to prominent clients with a truly comprehen-
growth, the form of management that is changes in society as quickly and as well sive portfolio of legal and tax services.
absolutely unique on the law firm market, as we can. We had been expecting a crisis
continuous improvement and expansion of with a major impact on the economy for What extra skills must an attorney
GROW IN TIMES
our services, building long-term strategic a long time, and we started preparing for taking care of a billionaire have?
relationships with our clients and other it about two years ago, be it in terms of We have an approximately 25-member
competitive advantages. It has therefore our services, diligent financial manage- team of very experienced lawyers and
been an unrelenting process of growth in ment or the creation of a sufficient finan- 12 other tax experts in our firm taking
terms of turnover, staff and the quality cial reserve. We have also significantly care of private clientele. This is the biggest
OF TROUBLE
and range of our services from the very increased the proportion of services for advisory group with this specialisation
establishment of our company in 2001 clients from anti-cyclical fields and the in Central Europe. The team is headed by
until now. However, if we had not succeed- overall efficiency and output per lawyer. four partners including myself, who have
ed in this challenging year and during the We focused on digitisation of our servic- already made significant achievements in
crisis, this year’s results would certainly es, including marketing. Even though their career and have excellent business
not have been at their historical best. the crisis eventually hit in a completely and management expertise. This ensures
different form than we had expected, we the utmost professionalism and also con-
What do you think contributed the were able to quickly respond to it. That tinuity of the relationship with the client
most to your success during the enabled us to promptly turn our atten- who requires a trustworthy mature person
global crisis? tion to our clients and provide them with that they can respect as their partner.
22 23You can also read
