Peter Dieners ,Clifford Chance

Germany is maintaining traction as a prominent legal market – top Japanese firm Nishimura & Asahi recently announced it will launch two new offices there, Big Four accountancy firm KPMG is boosting its legal operations and various U.K. firms are plotting changes to their LLP structures in the region, against the backdrop of Brexit.

Speaking to Law.com International, Peter Dieners, regional managing partner for Germany at Clifford Chance discusses the key legal trends in the country and how the firm's strategy lines up with an ever-evolving market.

How is the legal market in Germany and what is the main strategy for Clifford Chance?

Germany is one of the most developed and competitive legal markets globally. Virtually all areas of our economy and infrastructure are attractive for foreign investment, and most of the German corporates are very active players on an international level. It is therefore not a surprise that Germany is a hot legal market for local and international firms.

Our focus is on providing top tier advice to our international clients who are operating in a complex EU and German legal environment. We have been investing in our Germany practice over the past couple of years and we are now in a great position. We have brought in a number of high profile laterals in key areas for clients and we are bringing through new talent into the partnership each year. This investment has enabled us to reinforce our traditional areas of strength, for example in M&A, and to develop our capabilities in emerging areas such as tech.

We've also been developing the leadership of the team on the business professionals side and have built out our best delivery capability, which looks at how we maximise the efficiency of our core service delivery to clients through process improvements, technology and deployment of a range of alternative resources.

What sets you apart from the other Magic Circle firms in the region?

We do not define ourselves as a Magic Circle firm anymore but as an international and global firm. Our main differentiator is most certainly our integrated European offering, in combination with an incredibly strong position in the APAC and a dynamic U.S. practice.

When it comes to Europe, I'm really proud of what we have on offer. No other firm has an equally strong team on the ground across Europe, most notably when you look at our unique combination of transactional and regulatory expertise in key European economies such as France, Spain, Italy, all of the Benelux countries, Eastern Europe and of course our London powerhouse.

Who are your main competitors in Germany at the moment? How are you stacking up against them?

We are well positioned in the market with an outstanding reputation for high end legal services in the fields of transactions, investigations and risk. Apart from the incumbent U.K. headquartered elite firms, the leading U.S. players are our main competitors who are making high investments in lateral recruits. They are making themselves heard in any case. I could imagine however that their upward trend might turn out to be somewhat fragile as their offering appears less sustainable and strategic, in particular with a view on their continental European presence.

The Big Four firms are definitely a challenge since they are well organised and structured, but in my view they are aiming at a different level of business, less premium than ours.

How is the market responding to the cum-ex trials and what do you anticipate the effect to be? 

Political discussion in particular around cum-ex has been quite heated and has secured a lot of public and media interest. While we have never given any clients opinions endorsing cum-ex,  we are watching developments closely as this subject is likely to remain in the spotlight for some time to come. With our reputation for both combined tax, white collar and litigation expertise as well as for not having been involved in cum/ex models in the past, we are ideally placed to help clients work through possible cum/ex cases.

What predictions do you have for the German market going forward? 

The German legal market will remain very competitive. Over the last five years, we have taken a careful look at our practice here to ensure we remain well positioned for the future challenges, and we are convinced that we will be able to further expand our leading position as a top tier legal service provider in Germany known for the quality and efficiency of our client work and client service, and for our collegial and inclusive culture. We are well advised to keep alert in this respect. The German legal market as well as the economic environment are still attracting new market entrants such as Japanese law firms, and a wide variety of existing firms are doing surprisingly well, be they German or international.

Alongside that, I see us working in every closer collaboration with other European offices, including London, and with our global network. There is change in the market – the result of client drivers, geopolitics, and shifting expectations around careers and the workplace. I see that change as a huge opportunity and personally, I find meeting those challenges motivating and exciting.

What is your daily routine like as a managing partner of Clifford Chance?

Looking after our firm's substantial Germany business, I have a rather exciting job. Germany is a critical component of Clifford Chance's integrated European strategy and client offer. This means that I network and travel a lot across Germany – where we have three offices – and more widely around Europe to help ensure that our European practice is as joined up as possible. Apart from that, I also enjoy client work and still do business as one of our lead partners in our global healthcare practice, especially advising on compliance and governance matters.