Lexpert magazine features articles and columns on developments in legal practice management, deals and lawsuits of interest in Canada, the law and business issues of interest to legal professionals and businesses that purchase legal services.
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LEXPERT MAGAZINE | MARCH 2017 47 | SWISS VEREINS | When KWM came along, Berwin man- agement saw an opportunity to evolve from a mid-size London-based firm to a global practice with an international roster of clients. But, echoing the worst fears of the verein structure's critics, things started to go wrong as the combined firm's global managers sought to impose an Asian cul- ture on legacy Berwin. As well, global management sought a new European focus on practice areas important to the firm's China and Australia arms, contrary to the expectations of legacy Berwin partners, who foresaw an investment in European core practices that would further their global expansion. A review of KWM's website as the firm moved toward insolvency near the end of 2015 revealed a shocking lack of Euro- pean partners listed among the firm's key contacts. International referrals did come, particularly from China. However, ac- cording to e American Lawyer, KWM EUME was forced to do the work at dis- counts of up to 80 per cent, and was then blamed by global management for its lack of profitability. Overall, former partners told American Lawyer that Australia had a "total lack of interest" in the European operation and China was "largely ab- sent." Instead of promoting cross-selling, entrenched billing practices discouraged cross-selling by crediting only the partner who signed the invoice. cent of the European partners were dis- missed, and significant staff layoffs ensued. To make matters worse, former partners maintain that the restructuring process lacked transparency. en lightning struck: six lawyers com- prising the bulk of the Paris office's private- equity group, once the firm's most profit- able, le for Goodwin Proctor. Among the six was Paris managing partner Chris- tophe Digoy and Maxence Bloch, one of the firm's top billers and a member of the RICHARD GODDEN > LINKLATERS LLP "I won't go as far as to say that a verein can't be as seamless as a unified firm, but if you're trying to be seamless and doing it through a network or a verein, you start 30-love down. At the same time, just because you're an integrated firm doesn't mean that your structure alone ensure seamlessness." As reported further by e American Lawyer, matters came to a head when then global managing partner Stuart Fuller met with the European partnership. "He came in and said, 'is is what the firm is going to be. If you don't like it, get out,'" one for- mer KWM London partner who was pres- ent at the meetings told American Lawyer. "ere was a sense that China and Austra- lia wanted to build the law firm that they wanted and have London pay for it." What followed, in March 2016, was a restructuring of KWM EUME. Its 17 practice groups shrunk to three: corporate, funds and finance; dispute resolution and regulation; and real estate. Some 15 per PHOTO: SHUTTERSTOCK