"Mallesons chief names Bhutan in three-year forward strategy.” It would make a great headline – despite being nothing to do with the firm. Robert Milliner is a trekking enthusiast and has his trips planned for the next three years – including a journey to the tiny Kingdom of Bhutan. Meanwhile, another kind of forward strategy is keeping him occupied. Recently reappointed as chief executive partner for a tenure extending through to 2011, he has been charged with the task of protecting Mallesons’ position as one of the genuine heavyweights of the Asia-Pacific legal service. However, the firm has ambitions beyond merely consolidating its achievements to date.
Merger ambitions
Last year, Mallesons revisited the idea of a merger with Magic Circle firm Clifford Chance, but talks were thwarted by the deepening economic downturn. However, Milliner does not rule out the possibility of reviving the idea. “We have a view that there are certain trends driving the legal profession – globalisation of business, the war for talent, the kind of career opportunities that talented people are seeking, further market segmentation – and, in light of this, the preferred option for the firm is more likely than not to be part of a global one. I doubt we’re alone in that view,” he says.
The global economic downturn has, of course, put a new complexion on these developments, but Milliner says that when positive times return “the planets may align” once again in favour of a merger. But there is no guarantee that the partner firm will be Clifford Chance; there is no exclusive understanding between them.
“Our [merger] criteria are clear,” Milliner says. “We are motivated by how we can better service clients, how we can offer our people better career opportunities and how we can best leverage the firm’s legacy and history. We are looking at firms and asking the questions: ‘What makes you successful? Will that still be there if we were to come together – and would it be enhanced?’ It’s about compatible cultures and clients.”
All this raises other questions. As Clifford Chance was considered a compatible partner in 2008, would it not presumably remain so in 2010? Wouldn’t Clifford Chance remain the forerunner? But this is speculation on which Milliner will not be drawn. “We aren’t going to try and second guess the future,” he states. “Our criteria are clear and we will maintain dialogue with a whole range of firms.”
And this “whole range” of firms is not necessarily limited to the Magic Circle. Milliner has been travelling regularly to the UK and the US to meet with his counterparts in top firms there. Some of these discussions take place at formal conferences, while others are meetings arranged privately. The objective, however, is the same – to share ideas, with an open mind as to where the dialogue might lead.
Best of friends
While Mallesons has built up a strong presence in China and Hong Kong, it is absent from other Asia-Pacific markets, eg, Singapore, Tokyo and New Zealand.
Firms Mallesons has worked with in these jurisdictions include Allen & Gledhill and Wong Partnership in Singapore; and Russell McVeagh, Chapman Tripp and Bell Gully in New Zealand. Milliner says it would be difficult to have exclusive relationships in each jurisdiction. “Some clients, particularly general counsel, will have views about who should be used in a particular market. In the smaller markets, you get conflict and alignment issues. Exclusive referral relationships do have their merits, but there are also issues around ensuring the same culture and approach,” he adds.
Mallesons and Minter Ellison are the only top-tier Australian firms with London offices and Mallesons recently secured Minters’ London managing partner, Robert Hanley. Milliner describes the London office as an important feature that distinguishes the firm from other Australian competitors operating in Asia. “The predominance of London as a financial centre has seen the dominance of English law. Many Asian transactions are subject to English law and we need to be able to practise it. So the London market is a critical part of being in the market and picking up changes in it,” he says. The office also advises on the ‘kangaroo bond’ market and Australian clients investing in the UK or Europe.
Market share growth
Evidence of a recent flight to quality is currently largely anecdotal – but there, nevertheless. For example, 2008 M&A statistics saw Mallesons and AAR increase market share. Milliner says there has been a discernible trend over the past 12 months, and not just in M&A. “Insolvency and work related to it is more sophisticated than before. The underlying financial structures are more complex – you’ve got boards needing detailed governance advice. And all this plays to our strengths,” he says.
The other factor is that Mallesons’ depth of talent means work can be undertaken reliably but at speed. Milliner says the firm advised on more than 10 equity capital raisings in the flurry between December 2008 and January 2009.
The firm is on track to record revenue results this year similar to those of 2007 and 2008, although Milliner says that this result will have been assisted by a strong performance in the latter half of 2008, when the full effects of the downturn were yet to be felt. The Asia part of the operation, which contributes 10–15% of Mallesons’ revenue, is following a growth pattern similar to that of the rest of the firm.
The firm is not planning any redundancies, although Milliner is not ruling this out down the track. “We have to be realistic; we are in uncharted economic times which may cause structural adjustment and certain types of work may contract,” he admits.
“We have a view that there are certain trends driving the legal profession… and, in light of this, the preferred option for the firm is more likely than not to be part of a global one. I doubt we’re alone in that view”
Historical ties
When NAB (National Australia Bank) recently celebrated 150 years of business, it acknowledged its longstanding relationship with Mallesons, which dates back to 1858. It was a salient reminder of the role that the past has to play in building the future. “Most businesses are proud of their legacy and, if you’ve been able to grow alongside that business, it reinforces the relationship,” Milliner says. “However, we never take that relationship for granted.”
Whether Mallesons continues as a stand-alone firm, or whether its name becomes part of a double-barrelled brand in the future, Milliner is keen to see that culture continue. “We have a long-term commitment to our clients. It’s a firm that is client relationship focused.”