Baker & McKenzie Announces Record Global Fee Income
28 Aug, 2012
Baker & McKenzie, the leading global law firm, today announced record worldwide fee income of US$2.313 billion, up 2.1%, for its fiscal year ended June 30, 2012.
Revenue gains were driven by double-digit growth in Latin America and a more modest single-digit increase in Asia Pacific. Revenues were flat across North America and Europe, the Middle East and Africa. Here is the share of revenue by region: EMEA, 38%, Asia Pacific, 28%, Americas, 34%.
Demand was particularly strong for matters related to corporate reorganizations, tax planning, private equity, corporate compliance, especially export controls, embargoes and anti-corruption matters, and matters related to antitrust and competition, employment litigation and intellectual property.
Profit per equity partner was US$1,090,000, on net income of US$790 million, versus US$1,200,000 in FY11. This reflected less robust economic activity in developed markets, a stronger US dollar, and heavy investments in talent and in strategic markets, including new offices in Turkey, South Africa and Morocco and key lateral hires in North America, Europe and Asia Pacific.
“Our results reflect our return to investments that were deferred during the recent crisis years as well as the challenging circumstances confronting our clients in an uncertain global economy,” said Eduardo C. Leite, chairman of Baker & McKenzie’s Executive Committee. “We continue to see clients act on impressive strategic transactions and financings, but with more caution and financial discipline.
“Matching our legal talent and services with the needs and demands of our global clients has never been more important,” Leite added. “That’s why we continue to build our global platform for the long term in new markets and through strategic lateral hiring, while stepping up our focus on operating efficiencies.”
Activity by Region
EMEA – Consistent with regional market trends, public company M&A and banking & finance activity declined, while work related to corporate reorganizations increased. Tax, especially transfer pricing and restructuring-related work, real estate and intellectual property were bright spots, with solid gains. The Firm was named European Law Firm of the Year by Chambers. New offices were opened in Istanbul, Johannesburg and Casablanca.
Asia Pacific – Public company M&A improved, but more slowly than in recent years, while private company M&A work declined modestly. Tax, international arbitration, real estate, intellectual property, IT/communications and employment were bright spots, along with work related to loans and credit facilities. The Firm was named both Asia Pacific M&A and Southeast Asia M&A Law Firm of the Year at the Financial Times/mergermarket awards as well as Best International Firm for Women by Euromoney Asia.
Americas – Strong gains for tax, M&A, disputes, employment, intellectual property, and trade & commerce highlighted a double-digit improvement across Latin America, while private equity, antitrust, trade & commerce matters, especially those related to export controls and sanctions and anti-corruption, criminal litigation, and employment and IT/communications work were the strong spots in North America. The Firm was named one of the 25 top corporate law firms in the US for the 12th consecutive year by Corporate Board Member magazine.