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Regional focus: Reading and the Thames Valley
California it ain’t its multitude of big-name The Thames Valley is renowned for ess discovers, comparisons tech companies. But, as Legal Busin al economy justice with Silicon Valley don’t do the loc JAMES LEWIS
THE WIDESPREAD PERCEPTION THAT the Thames Valley is all about technology is misleading. The region’s entrepreneurs may take some of the blame for this, as the UK’s own dotcom ‘boom’ was often amplified by ambitious outfits based in Reading. Folk are quieter now. Inevitable comparisons with America’s Silicon Valley are well meant – flattering, even – but the reality is somewhat different. While it’s thought that as many as 60% of the region’s companies are technologyrelated, there is a diversity of sectors that sustains the area’s law firms, particularly in the wake of a downturn whose effects few TMT companies escaped. Law firms – including some of the long-established practices ignored by many observers as the
46 Legal Business February 2004
tech boutiques opened in a blaze of regional glory – are now finding themselves back on the level playing field of stiff competition and are searching for talent. City lawyers are among the most highly soughtafter relocation commodities. Everyone knows about the big-name tech/media companies that prompted those erstwhile titans of the TMT world, Olswang and Osborne Clarke, to launch offices in the region. The likes of Microsoft, Sun Microsystems, and O2 are all in the Thames Valley. And Oxford – home to the OUP and
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> Blackwells – has established itself as the UK’s second centre for publishing behind London. However, cut to the Thames Valley Business Awards, which took place at the end of last year. The venue was the very un-dotcom surroundings of Wentworth golf club. Guest of honour was former Chancellor of the Exchequer, Nigel Lawson. As predictable as his subject matter, euroscepticism, was the winner of business of the year: O2. But while the Thames Valley’s business and legal community remains thrilled to play host to such an enormous corporate, it was the diversity of the rest of the prizewinners and nominees
Ellacott: holding her own in TMT
launched its Reading office in 1998, focusing on TMT and major VC clients like 3i. ‘Even before the tech slump, we found there was much more here,’ says Andrew Gowans, the firm’s Thames Valley managing partner. ‘Even pre-2000, we picked up major clients outside that TMT focus, like British Gas and National Power.’ Of course, some Thames Valley firms remain avowedly TMT-focused. Manches is a classic example – little wonder, with publishing clients like Oxford University Press and the Tolkien literary estate, and technology clients like Oxford Gene Technology and the Central Laboratory of the Research Councils on its doorstep. ‘In the boom times, firms were keen to be associated with the sector,’ says Manches’ Oxford managing partner, Peter Angel. ‘Many of them have now moved away. I read that even firms like Taylor Wessing and Olswang have been rather downplaying their investment in technology practices. I find that curious. We still have a heavy emphasis on technology and media: IT, biotech and publishing account for 75% of our turnover.’ Clarks’ approach has been markedly different. ‘Technology is clearly a significant factor and tends to catch the headlines,’ says managing partner Michael Sippitt. ‘We have clients like Sun Microsystems. But employment and environment are the spearheads of our practice. We’ve recognised that a firm of our size [32 fee-earners] has to have a strategic focus on practices in which we can compete on a national basis.’ Bill Gornall-King, chairman of Readingbased Boyes Turner, emphasises the increasing diversity. ‘Financial services are on the up, with ING Direct setting up a call centre in Reading recently, for example. There’s not a vast amount of metal-bashing, but the automotive sector is prominent with Porsche, BMW and Honda here. And the public sector is important, especially education, with Oxford and Reading Universities in the area.’ Another local Reading firm, Pitmans, has built an immensely successful practice by feeding off this very diversity. Balanced evenly between property, corporate and
‘There was a real danger of being a one-trick pony. If we’d kept the narrow TMT focus, we’d be in trouble.’ Sara Ellacott, Nabarro Nathanson that spelled out the fact that the many lawyers present had their fair pick of new business opportunities. Think Xtrac, a world leader in the design and manufacture of motor sport transmissions, which swept the first gong of the night, the award for outstanding management. Or Vivid Imaginations, one of Britain’s leading toy manufacturers, which was runner-up. Or the rapidly expanding hot dog company, Rollover, which clinched the bronze award. Those practices prepared to think outside the TMT box are more than ticking over.
Outside the box As head of Nabarro Nathanson’s e-commerce group (and leader of the firm’s Reading IP team), you’d expect Sara Ellacott to revel in the TMT work on offer. ‘There’s definitely a great TMT focus in the Thames Valley. That’s why we opened here 15 years ago,’ she explains. However, balance is the firm’s mantra. ‘Since then,’ she adds, ‘we’ve been at pains to build up other areas, especially banking and finance, commercial property, and in the past two
years public sector has been a big area for us, attracting a valuable flow of work. After the e-commerce boom and bust, the fact that we had other areas to go to was important.’ After so many years in the Thames Valley, the firm has now established itself with a far wider range of skills. ‘What is pleasing for us is that we’re recognised in areas other than TMT now,’ Ellacott says. ‘There was a real danger of being a one-trick pony. If we’d kept the narrow focus, we’d be in trouble. We’re now looking to grow corporate and property, while in technology it’s a case of consolidation and holding our own.’ Osborne Clarke arrived in the Thames Valley rather more recently. The firm Gornall-King: local knowledge pays dividends
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Thames Valley Partners
The Thames Valley is one of the most dynamic and exciting business and legal markets in the UK.
Oxon or Berks | Corporate Partner
Thames Valley | Competition Partner
Due to succession planning, two wonderful opportunities exist for ambitious corporate partners to join highly rated ex-London teams handling high quality work. Top calibre lawyers are sought for both these key appointments. With broad corporate experience plus the personality and technical ability to play a leading role in driving forward flourishing corporate law practices. Both positions are genuine opportunities to share in the success of meritocratic, profitable partnerships.
This leading regional firm is seeking a dynamic competition partner for a key new appointment within its company/commercial department. With competition law opportunities in the South East outside London extremely rare, this is an unmissable opportunity for a go-getting partner seeking to combine top quality work with an excellent quality of life. Wonderful chance to join one of the most exciting firms in this thriving region seeking the next round of partner level ‘stars’.
If the commute is no longer worth it, yet you have no desire to compromise the quality of your work, a new career in the Thames Valley might be the answer.
Oxon | Property Partner
Thames Valley | Head of IT / IP
A superb opportunity exists within the vibrant Commercial Property department of one of the region’s foremost law firms, home to a large number of ex City partners. The role would suit an established partner who is keen to make their mark at a profitable firm poised for further exciting growth. The successful appointee will play a leading role in the direction of the firm as a whole. This is a key appointment and a significant remuneration package will be offered.
This phenomenally successful firm offers London lawyers a congenial working environment in the Thames Valley and has just had one of its busiest years ever. Due to succession planning, a wonderful opportunity has been identified for a partner to come on board with a proven track record in heavyweight non-contentious IT and/or IP work. This is an unmissable opportunity for an ambitious partner keen to share in the success of a dynamic IT/IP team and highly attractive terms are guaranteed.
Reading | Property Partner
Thames Valley | Head of Employment
This profitable commercial firm has just reported record profits and, as part of its sustained expansion programme, it is now seeking an ambitious, business orientated partner with top quality experience in broad commercial property work. This is a first class opportunity for an energetic, self-motivated partner with the necessary drive, ambition and marketing skills to make a real contribution to the future development of the department and the firm.
This go ahead commercial practice has a fast growing and highly respected employment law practice which goes from strength to strength. It is now seeking a renowned employment law partner with the reputation and personality to lead this flourishing department. Superb opportunity for an ambitious partner who can demonstrate a proven track record in building client relationships and has leadership skills to make their mark in this prosperous region.
Cotswolds | Media Partners
Thames Valley | Litigation Partner
This cutting edge commercial firm is entering its next wave of exciting strategic expansion and is seeking dynamic partners to play a key role in its development. Superb opportunities exist for partners who are interested in launching their careers outside London in the following specialisms: Music (noncontentious), Publishing (litigation),TV, Radio, Telecoms, Competition and Sport. Remuneration packages will be competitive with London rates.
Tremendous opportunity for a top calibre partner to join the highly rated commercial litigation team of this leading regional firm and share in its phenomenal success. A top flight City or top regional firm background and a proven track record in business development (as evidenced by the ability to bring client contacts) are prerequisites for this attractive role. This is an exciting opportunity for an ambitious, energetic partner keen to make their mark.
For a confidential, exploratory discussion, call Liz Neser on 020 7430 1711. e: ln@grahamgill.com
Partners • Assistants • Mergers • In-House • Legal IT • Management • Finance • Marketing • HR Graham Gill Legal Recruitment 63 Lincoln’s Inn Fields, London WC2A 3JW www.grahamgill.com
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READING’S OUT-OF-TOWNERS Firm Opened Nabarro Nathanson 1988
Olswang May 2002
Osborne Clarke January 1998
Key partners
Recent top hires
Tony Bailes, office managing partner/TMT n/a Sara Ellacott, IT/IP/e-commerce Glyn Taylor, corporate Peter Sheppard, commercial litigation
Marshall Leopold, managing partner/ head of corporate Tim Clark, disputes/IT/energy Andrew Peddie, M&A/corporate finance Debra Kent, property
Michael Benster joined as a banking partner from the New York office of Vinson & Elkins in February 2004
Andrew Gowans, corporate Greg Layshon, corporate Hugh Jones, banking Danielle Kingdon, employment Frank Morton, employment Russell Bowyer, commercial Angus Finnegan, commercial
n/a
Key clients
Size of firm 2004
Size of firm 1999
Oracle Sun Microsystems
RWE Thames Water Computer Associates O2 RHM
7
50
4
33
partners
staff
partners
staff
11
44
partners
staff
n/a
10
47
4
partners
staff
partners
Microsoft 3i
19 staff
READING’S OLD GUARD Firm Opened Boyes Turner 1887
Pitmans 1824
Shoosmiths 1973
Key partners
Recent top hires
Key clients
Bill Gornall-King, chairman/technology and commerce Andrew Chalkley, CEO Philip Tranter, corporate Roy Butler, corporate Michael Farrier, employment Mark Appleton, property Mike Robinson, dispute resolution Chris Branson, corporate recovery John Hutchinson, company/commercial Patrick Long, banking James Burgess, commercial property Dan Drukarz, planning/environment Philip Weaver, IT/IP
Corporate partner Patrick Walsh from Pinsents and dispute resolution partner Geoff Mendelsohn from Herbert Smith and CMS Cameron McKenna
Ericsson The Met Office Panasonic Barrett
Nigel Thorne, head of office/corporate Claire Rowe, head of national litigation practice Dean Drew, corporate Nicki Martienssen, IT/commercial Kevin McCavish, employment Alan Corcoran, commercial property
Size of firm 2004
24
Size of firm 1999
138
14
70
staff
partners
staff
220
11
133
partners
staff
partners
staff
9
84
5
55
partners
staff
partners
staff
partners
Banking partner Patrick Long Porsche Cars GB from Stephenson Harwood Fujitsu Siemens in London 19
Commercial property partner Bang & Olufsen UK Alan Corcoran joined from Nabarro Nathanson (London) in December 2003.
Source: Legal Business
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litigation, the cornerstones of the practice are big-name automotive sector companies such as Porsche, and housing developers like Barrett Homes, Linden Homes, and Wimpey. ‘Even when I was at law school I was convinced that that the Thames Valley would be an exciting business environment. I always saw us becoming the Wragges of Reading and I’d like to think we’re nearly there. To do more of the Plc work we simply need to grow,’ enthuses managing partner Christopher Avery.
Attracting talent Of course, prudent growth is the hardest balancing act of all. Marshall Leopold is managing partner of Olswang’s Reading office, born as it was from the former Andersen-linked Garretts. ‘As the Valley has become more coloured – a broader church if you like – we’ve needed to bulk up across
the board. We’re Many more of our people have trying to recruit, but worked in the City; clients find it’s tough finding that attractive. Of course, the right people,’ lifestyle is a recurrent reason.’ Leopold explains. Liz Neser, a partner specialist The answer, at Graham Gill Legal Recruitof course, lies ment, also notes the sustained downriver. ‘Looking demand from Thames Valley at Reading 25 years firms for top-calibre City ago, it would not lawyers: ‘The demand for City have attracted refugees seeking a better quality people from work/life balance by moving London,’ says out of London shows no sign of Gornall-King. ‘More abating. Indeed, ambitious recently we’ve taken growth is being predicted for a number: Geoff the year ahead.’ Avery: Pitmans aims to be the Wragge & Co of Reading Mendelsohn came Gornall-King highlights to us from Herbert Smith via another factor that draws talent from the Laytons, Patrick Walsh came City. ‘We’re 23 partners. Some find our size from Pinsents, and Mark extremely attractive, not least if they’ve Appleton joined us from DLA. come from a firm of around 200. They find
South East Specialists
Nick Tyrrell The Thames Valley offers lawyers the opportunity to achieve a genuine balance between their Jon Garrett professional and personal lives. Please call for a confidential discussion and details of current opportunities.
Employment
Partner Designate
Pharmaceutical
Partner
IT
Equity Partner
Following a number of high profile lateral hires, our client is now eager to appoint an employment partner to establish a new department, handling both contentious and non-contentious work. There is tremendous scope to build a formidable department. Strong leadership qualities and some following required. Ref: 7771
Following our client’s successful merger and relocation to new offices it is eager to become the top firm in the Thames Valley market. It seeks an exceptional pharmaceutical lawyer to establish a new Pharmaceutical Department that can serve the region’s numerous and successful pharmaceutical businesses. Ref: 7940
Our client is one of the leading firms in the Thames Valley area and is now eager to build on its success with the appointment of an IT partner who can develop the firms technology client base. The successful candidate will be an established partner with a following and contacts across the region. Ref: 7942
Planning
Construction
Corporate / Commercial
Partner
Having moved into state of the art new offices our client is keen to appoint a new planning partner to consolidate the work that is currently managed by several property partners. A following is not essential, but the remuneration on offer and seniority of the position will reward any introduced. Ref: 7941
Partner
Increasing demands from its existing client base leads this c25 partner TV firm to seek a partner with an established reputation to head up this practice area. Our client is one of the fastest growing and highly regarded commercial firms in the region, and offers a superb platform for an energetic partner, ideally with some following. Ref: 7943
Partner
This modern and progressive regional heavyweight already handles some of the South East’s top corporate/commercial work, and now seeks to further enhance its position by hiring an additional partner with some following. Superb opportunity for an ambitious and focused lawyer to maximise quality of life with quality of work. Ref: 7944
Garrett McCarroll Knowles Ltd, 125 High Holborn, London WC1V 6QA T 020 7405 6464 F 020 7405 6476 E info@gmk-legal.co.uk
www.gmk-legal.co.uk
>
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practice when he was three years PQE. Lifestyle reasons? You bet. ‘The pressures aren’t as consistently high-level,’ he says. ‘People often say Osborne Clarke’s Reading office is a refugee camp for burnt-out former City lawyers. In the City, all-nighters become a way of life. We do all-nighters regularly enough now, but it’s not a way of life.’
‘I always saw us becoming the Wragges of Reading and I’d like to think we’re nearly there.’ Christopher Avery, Pitmans
> the potential for increased control over the firm appealing.’ Key areas for lateral growth are in the more ‘traditional’ fields of practice. Sandra Godbold, a consultant in the law firm division at recruiters Hays ZMB, says: ‘The Thames Valley is starting to attract more people out of London. If talented London lawyers are victims of downsizing, the area is attractive because the reverse commute is so easy. We target it as an important market in its own right. Areas such as private client, property and litigation are particularly buoyant – areas not so sensitive to the downturn.’ Neser adds: ‘The partners we introduce to Thames Valley law firms tell us they are pleasantly surprised by the “London”-quality work being undertaken by firms in this thriving region.’ Osborne Clarke’s Andrew Gowans is a high-profile example of one who was
persuaded to make the switch. He left Freshfields Bruckhaus Deringer’s London office to open Osborne Clarke’s Reading
Local knowledge Attracting talent is one thing, attracting clients is another. Given the proximity to London, the most common (and most critical) challenge facing firms in the Thames Valley involves attempts at snatching instructions from under the noses of City firms. ‘We convince clients that we can really get to know their businesses because we can be there within 10 or 15 minutes,’ Nabarros’ Sara Ellacott says. ‘We also try and sell a lack of the stuffiness that some clients feel pervades London firms. Another important factor was our recognition five years ago that we needed to be seen by potential clients as genuinely interested in the Thames Valley for itself.’ The local business community has indeed been sceptical about the
Angel: competition is good for the market
OXFORD LEADERS Firm Opened Blake Lapthorn Linnell May 2003
Manches 1982
Key partners
Recent top hires
Key clients
Jonathan Lloyd-Jones, head of dispute resolution/former senior partner of Linnells Edward Lee, head of corporate and commercial Anne Cowell, real estate Michael Knott, private client
Private client partner Michael Alcatel Knott joined from Russell Jones Whitbread & Walker Berkeley Homes Kerry Group South West Trains Zurich Insurance
Peter Angel, corporate Steven Maier, contentious IP and IT Cathleen Blackburn, publishing Chris Shelley, biotechnology Julie Bond, commercial litigation Christine Reid, IT Daff Richardson, employment Richard Smith, commercial property/ environment
Jim Kinnier Wilson, former head of biotechnology at Nabarro Nathanson
The Tolkien estate Central Laboratory of the Research Councils Oxford University Press Blackwell Siemens
Size of firm 2004
Size of firm 1999
19 26
106
partners
staff
19 89 partners
staff
93 partners
12 partners
staff*
61 staff
Source: Legal Business * figures for Linnells before merger with Blake Lapthorn
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commitment of London firms to the region. ‘Our due diligence suggested that what was needed was real commitment,’ says Gowans. ‘We opened with just nine people. Now we have 17 corporate transactional lawyers, separate teams for private equity, banking, and commercial. As of 5 January we brought down a property specialist from Bristol. This will allow us to actively bring in clients, rather than just responding to need.’ Another issue is that major multinationals may take some persuading to instruct firms that, while well-known locally, are not big names internationally. ‘You could say the Thames Valley is overdependent on the US for inward investment. Many multinationals will make decisions offshore and go for City firms they know by reputation,’ says Bill Gornall-King. ‘But, in time, local management will always go for people they know and trust locally. Price is obviously a factor, but, if you have the ability to do the work and can build relationships, proximity is always going to be key.’ Clarks’ managing partner Michael Sippitt has encountered similar difficulties. ‘Often, subsidiaries of US companies will go to firms recognised by the parent company,’ he says. ‘But, in time, that breaks down and they will approach local firms. Usually that happens when they’re putting together a panel.’ Pitmans’ Christopher Avery echoes this sentiment. ‘It’s hard to get into the major tech companies. Big names like Microsoft will usually go to City firms. We managed to make the breakthrough into Veritas and Fujitsu Siemens through our property work for them.’ Some quarters of the business community take some convincing that even the Thames Valley’s main centres, Oxford and Reading, are credible markets for legal services. ‘Greater competition gives more credibility,’ says Manches’ Peter Angel. ‘Oxford has been in the shadow of Reading in terms of the legal market. The competition is getting stronger now and that’s good for the market as a whole.’ Blake Lapthorn Linnell’s Jonathan LloydJones agrees that Oxford is a less competitive market than Reading: ‘Reading is almost overlawyered, especially in tougher economic times. In Oxford, we have been able to carve out a clearly defined place in the market.’ Despite being upbeat about the diminishing credibility gap, Angel acknowledges
that hurdles remain. ‘What I like to see is that more and more clients feel they don’t have to go to the Magic Circle any more,’ he says. ‘There is a ceiling. It’s not necessarily a value ceiling, but a size ceiling. For most deals up to £100m we should be fine, but ask us to put together a team of ten corporate lawyers and we’d struggle.’ Shoosmiths’ Nigel Thorne agrees that there is a barrier, encountered at the £75m-100m mark, but this still leaves a remarkably sizeable number of deals to aim at. ‘It’s getting easier to win deals out of London,’ he
notes. ‘There’s a cascade effect. It started with employment matters coming our way and has moved up to property. To some degree it has now moved up to corporate. The banks and major institutions are learning to trust the firms in the Thames Valley.’
On the up There is an almost tangible optimism on the part of the region’s legal and business community. The Thames Valley is defined differently by many people. But the area defined broadly as the corridor between Slough and Swindon is already the 14thbiggest wealth-producing area in Europe. Not being Silicon Valley is clearly a good thing after all. LB james.lewis@legalease.co.uk
February 2004 Legal Business 53