LONDON - EDWARD BRAHAM took over the corporate practice at the London-based law firm Freshfields Bruckhaus Deringer at a rough time for deal-making. In the midst of the global economic slump in early 2009, banks were reluctant to lend money and companies did not want to spend their cash.
So Mr. Braham, 51, and his colleagues went on the offensive.
After reaching out to partners in the firm's 28 offices spread across 16 countries, Mr. Braham decided to refocus the group's strategy, emphasizing its international reach. To increase ties between Europe, North America and Asia, Freshfields hosted its own version of speed-dating at partners meetings, where lawyers outlined their areas of expertise to colleagues until a bell signaled them to switch.
The firm also developed cross-border groups assembled around practices like capital markets and mergers and acquisitions. Each group, composed of roughly 15 senior lawyers from different countries, holds monthly con ference calls to discuss trends and developments in their respective regions.
“I was convinced we could stay at the front of the pack,†said Mr. Braham, an Oxford University graduate who started his legal career at Freshfields in 1985.
The global strategy has helped the firm to weather the financial turmoil.
Freshfields advised on almost a quarter of the European-related mergers and acquisitions announced during the first six months of the year, according to the data provider Thomson Reuters. It is working with the mining giant Xstrata on its proposed $90 billion merger with the commodities trader Glencore, as well as United Parcel Service on its planned $6.8 billion takeover of the Dutch shipping company TNT Express. Anheuser-Busch InBev also hired Freshfields as part of its $20.1 billion deal to buy the half of the Mexican brewer Grupo Modelo it did not already own.
With $162 billion of announced deals, Freshfields now ranks as the top law firm for the first half of 2012, up from eighth over the same period last year. Mr. Braham declined to comment on specific deals.
Still, the slump in acquisitions has forced Freshfields to adapt. The law firm has reorganized its teams, moving lawyers from depressed sectors, like private equity, to high-growth areas like restructuring.
Freshfields is also capitalizing on the European debt crisis. The firm is advising the Bank of England, the country's central bank, and the German Finance Ministry as they navigate the current financial problems. In debt-ridden countries like Spain and Italy, the law firm is helping struggling companies restructure their businesses and sell unwanted assets.
“Faced with the euro zone problems, there's a flight to quality by corporate clients across the markets where we operate,†Mr. Braham said. “If you are in the flow right now, it's amazing how much is actually going on.â€
Freshfields has not been immune to broader pr oblems affecting the legal industry. Since 2008, the firm has laid off lawyers in weaker units, like real estate. Analysts also warn that a prolonged downturn in deal activity is likely to weigh on the firm's earnings. The law firm reported a 9 percent drop in its net profit, to £535 million, or $869 million, in the 12 months through April 5, 2012.
Freshfields has learned to evolve over its long history. Founded in 1743, the firm took advantage of the deregulation of the British financial services industry in 1986 to gain new clients, like the private equity firms Kohlberg Kravis Roberts and CVC Capital Partners.
In the 1990s, it expanded rapidly overseas, opening offices in Beijing, Moscow and Washington. In 2000, Freshfields merged with its German counterpart, Deringer Tessin Herrmann & Sedemund, and the Austrian-German firm Bruckhaus Westrick Heller Löber.
After the dot-com bubble burst, the firm was forced to reorganize, shedding more than 100 pa rtners. The move prompted an age discrimination lawsuit against the firm, which it eventually won.
By focusing on global deal-making, Freshfields says it has been able to better compete with the major American firms, like Sullivan & Cromwell and Simpson, Thacher & Bartlett. Matthew Herman, head of the firm's corporate practice in the United States, says the ability to call on partners from as far as China and Germany gives it an edge.
“For larger deals, it's essential for law firms to have a global reach,†said Edmund-Philipp Schuster, a law professor at the London School of Economics and former corporate lawyer at Baker & McKenzie. “Being able to work across borders is an important advantage.â€
The firm's international brand also has helped it attract clients in the emerging markets looking to expand overseas. The deals, which often involve state-owned enterprises, can cause legal headaches, as Western regulators scrutinize takeovers from new global powers like China.
When Freshfields advised the Chinese automaker Geely on its $1.8 billion takeover of the luxury brand Volvo from Ford in 2010, the law firm had to deal with intellectual property issues that spanned three continents. To get the deal done, a team of lawyers in Hong Kong, London and New York devised a structure that allowed Ford to keep control of its closely guarded technology, but gave Geely access to certain patents to continue manufacturing Volvo cars. The cross-border deal also granted the Chinese company control of Volvo's manufacturing plants in Europe, while allowing Geely to extend manufacturing into China.
“Around one-third of what we're doing now is connected to emerging markets,†Mr. Braham said. “That's where our clients want to be.â€
