Slaughter & May’s ‘Best Friends’ Network Faces Changes as US Law Firms Take Center Stage

Slaughter and Might’s famend ‘greatest buddies’ community, recognized for its tight-knit collaboration amongst elite European companies, is present process a change that sees US regulation agency functionality changing into the primary cornerstone of world M&A piece.

Latest developments point out that these greatest buddies, together with BonelliErede, Bredin Prat, De Brauw Blackstone Westbroek, Uría Menéndez, and Hengeler Mueller, are turning extra in the direction of bigger U.S. companies like Kirkland & Ellis, Freshfields Bruckhaus Deringer, and Latham & Watkins, signaling a rising significance of U.S. capabilities in main M&A endeavors.

Whereas the ‘greatest buddies’ community has historically thrived on mutual referrals, knowledge-sharing, and joint coaching, current months have seen scrutiny over its effectiveness.

An evaluation by Legislation.com Worldwide in September 2023 revealed a decline in collaborative M&A issues inside the community since 2020.

Recent knowledge from Refinitiv overlaying the final three years additional highlights a shift, with Slaughter and Might being outranked by seven different companies, together with Freshfields, Latham & Watkins, and Kirkland & Ellis, by way of collaboration frequency on worldwide offers.

The highest three companies main collaborative efforts with the perfect buddies community are Freshfields Bruckhaus Deringer (25 offers), Latham & Watkins (20 offers), and Kirkland & Ellis (19 offers), indicating a noticeable transfer towards U.S. gamers within the collaborative panorama.

This evolution raises questions concerning the ongoing relevance of the ‘greatest buddies’ mannequin, with some business commentators suggesting that the demand for U.S. capabilities is changing into more and more essential for vital M&A transactions.

In response to a lawyer from a number one U.Okay.-founded agency, the authorized panorama may see fewer elite companies sooner or later, with these remaining working globally and actively pursuing a U.S. technique.

The restricted U.S. presence of ‘greatest buddies’ companies, similar to Uria and Slaughter and Might, could possibly be a contributing issue to this shift.

The information means that when exterior counsel is sought, there’s a rising choice for companies with each U.Okay. and U.S. capabilities. European outfits are anticipated to more and more flip to U.S. companies like Kirkland and Latham for his or her cross-border experience as purchasers deliver extra advanced points to the desk.

Regardless of the obvious decline within the frequency of collaborations inside the community, insiders defend the ‘greatest buddies’ mannequin, emphasizing that it stays a beneficial selection when deemed applicable. They argue that the community’s energy extends past introduced offers, involving shut relationships, joint occasions, and referrals that will not all the time seem within the knowledge.

Whereas acknowledging modifications in collaboration patterns, insiders keep that the ‘greatest buddies’ community continues to serve its goal, offering a platform for numerous authorized interactions past M&A, making certain a sturdy and dynamic relationship amongst member companies.