20090310 - an overview of the brazilian corporate legal market · an overview of the brazilian...

An overview of the Brazilian corporate legal market

An overview of the Brazilian corporate legal market

KermaPartners Global Firm MeetingMarch 10th, 2009

Marco Antonio P. Gonçalves

KermaPartners Global Firm MeetingMarch 10th, 2009

Marco Antonio P. Gonçalves

© Gonçalves & Gonçalves Marketing Jurídico. All rights reserved. 2

About meAbout me

. Business administrator specialized in marketing and business development strategies for law firms.. More than 10 years of experience working in the legal and information technology markets.. Worked for seven years at a major Brazilian law firm (top 30 firm according to Análise Advocacia 2008).. Executive partner of Brazilian consultancy Gonçalves & Gonçalves Marketing Jurídico.. Author of marketingLEGAL, the first and major Brazilian blog on legal management issues.. Founder of Marketing Jurídico Brasil, the first and major Brazilian debate group on legal management issues.

. Business administrator specialized in marketing and business development strategies for law firms.. More than 10 years of experience working in the legal and information technology markets.. Worked for seven years at a major Brazilian law firm (top 30 firm according to Análise Advocacia 2008).. Executive partner of Brazilian consultancy Gonçalves & Gonçalves Marketing Jurídico.. Author of marketingLEGAL, the first and major Brazilian blog on legal management issues.. Founder of Marketing Jurídico Brasil, the first and major Brazilian debate group on legal management issues.


.Law firms are not the subject of regular research in Brazil.

.Very little and imprecise information is available:– Number of lawyers;– Number of law firms;– Revenue of law firms;– Etc..The following slides show what is available!

.Law firms are not the subject of regular research in Brazil.

.Very little and imprecise information is available:– Number of lawyers;– Number of law firms;– Revenue of law firms;– Etc..The following slides show what is available!

The Brazilian legal marketThe Brazilian legal market


.638,538 lawyers by March 4th, 2009!

.Result of +1,000 Law Schools.

.326,000 lawyers work in Rio de Janeiro and São Paulo (51%).

.Rio de Janeiro and São Paulo both account for 45% of Brazil’s GDP (2006).

.638,538 lawyers by March 4th, 2009!

.Result of +1,000 Law Schools.

.326,000 lawyers work in Rio de Janeiro and São Paulo (51%).

.Rio de Janeiro and São Paulo both account for 45% of Brazil’s GDP (2006).

Lawyers, lawyers, lawyers!Lawyers, lawyers, lawyers!

Fonte: Brazilian Bar (March, 2009) and IBGE (2006).


Lawyers by regionLawyers by region

Fonte: Brazilian Bar (March, 2009) and Gonçalves & Gonçalves Marketing Jurídico analysis.

8%4%

12%

15%61%

Mid-WestNorthNortheastSouthSoutheast


Growth between 2004-2009Growth between 2004-2009

0

100.000

200.000

300.000

400.000

500.000

600.000

Apr-04 Dec-04 Aug-05 Apr-06 Dec-06 Aug-07 Apr-08 Dec-08

Brazil (58%)

Southeast region (51%)

Other regions (69%)

Fonte: Brazilian Bar (March, 2009) and Gonçalves & Gonçalves Marketing Jurídico analysis.


.A large number of lawyers work alone and provideservice mostly to individual clients.

.Around 60,000 lawyers work in an estimated21,000 firms.

.Most firms have between 2 and 5 partners.

.A large number of lawyers work alone and provideservice mostly to individual clients.

.Around 60,000 lawyers work in an estimated21,000 firms.

.Most firms have between 2 and 5 partners.

A highly pulverized marketA highly pulverized market

Fonte: Análise Advocacia 2006 (September, 2006) and Valor Análise Setorial (December, 2006).


Hypothetical distribution of law firmsby number of partners

Hypothetical distribution of law firmsby number of partners

72%

24%

2% 2%

2 partners3 to 5 partners6 to 10 partnersMore than 11 partners

Fonte: Valor Análise Setorial (December, 2006). Some figures are estimated.


Law firms by stateLaw firms by state

36%

19%11%

9%

25%

São PauloRio de Janeiro*Rio Grande do SulMinas GeraisOthes states*

Fonte: Valor Análise Setorial (December, 2006). Some figures are estimated (*).


.Based on the revenue of 13 large firms, a mathematician estimated in 2006 that the top 100 Brazilian firms earn R$ 2.4 billion (more than US$ 1 billion).

.A raw estimate for all Brazilian law firms would be around R$ 6 billion (less than US$ 3 billion).

.Based on the revenue of 13 large firms, a mathematician estimated in 2006 that the top 100 Brazilian firms earn R$ 2.4 billion (more than US$ 1 billion).

.A raw estimate for all Brazilian law firms would be around R$ 6 billion (less than US$ 3 billion).

How much do these firms make?How much do these firms make?

Fonte: Análise Advocacia 2006 (September, 2006) and Valor Análise Setorial (December, 2006).


Revenue for 19 law firms (2005)Revenue for 19 law firms (2005)

Fonte: Valor Análise Setorial (December, 2006).

Firm HQ Annual revenue(R$ thousand)

Number oflawyers

Annual revenue perlawyer (R$ thousand)


Firm Revenue (R$ million)

Pinheiro Neto Advogados 200*

Demarest & Almeida Advogados 150*

Machado, Meyer, Sendacz e Opice Advogados 150*

Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga 150

TozziniFreire Advogados 150*

Veirano Advogados 100

Barbosa, Müssnich & Aragão Advogados 80*

Siqueira Castro Advogados 80

Revenue for some of the top firms (2005)Revenue for some of the top firms (2005)

Fonte: Valor Análise Setorial (December, 2006) and Análise Advocacia 2006 (September, 2006). Some figures are estimated (*).


. Ranking of 674 corporate law firms.

.More than 1,299 professionals from 1,181

companies named the lawyers and/or firms

they admire.

(page 21)

. (...) companies were gathered from the rankings

of four Brazilian publications: Exame Melhores e

Maiores - edição 2007; Valor 1000 - edição 2007;

As melhores da Dinheiro - edição 2007; Balanço

Anual, da Gazeta Mercantil - edição 2007.

(page 21)

. Ranking of 674 corporate law firms.

.More than 1,299 professionals from 1,181

companies named the lawyers and/or firms

they admire.

(page 21)

. (...) companies were gathered from the rankings

of four Brazilian publications: Exame Melhores e

Maiores - edição 2007; Valor 1000 - edição 2007;

As melhores da Dinheiro - edição 2007; Balanço

Anual, da Gazeta Mercantil - edição 2007.

(page 21)

Análise Advocacia 2008 (3rd edition)Análise Advocacia 2008 (3rd edition)

Fonte: Análise Advocacia 2008 (September, 2008).


Análise - Ranking by regionAnálise - Ranking by region

3%1%6%

16%

74%

Mid-WestNorthNortheastSouthSoutheast

Fonte: Análise Advocacia 2008 (September, 2008) and Gonçalves & Gonçalves Marketing Jurídico analysis.


Análise - Ranking by firm sizeAnálise - Ranking by firm size

38%

49%

8%5%

SmallMediumLargeMega



# Firm Lawyers Year

1 TozziniFreire Advogados 437 1976

2 Demarest & Almeida Advogados 428 1948

3 Siqueira Castro Advogados 388 1948

4 Pinheiro Neto Advogados 342 1942

5 Machado, Meyer, Sendacz e Opice Advogados 301 1972

6 Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga 267 1992

7 Décio Freire & Associados 253 1992

8 Édison Freitas de Siqueira Advogados Associados 217 1987

9 Barbosa, Müssnich & Aragão Advogados 215 1995

10 Noronha Advogados 215 1978

Análise - Ranking “top 10”Análise - Ranking “top 10”

Fonte: Análise Advocacia 2008 (September, 2008).


Análise - Ranking by years of practiceAnálise - Ranking by years of practice

33%

36%

12%

7%

5%7%

Les than 10 years10-20 years20-30 years30-40 years40-50 yearsMore than 50 years



Análise - Ranking by practice areasAnálise - Ranking by practice areas

37%

50%

13%

Specialized"In between"Full service



.Crisis? What crisis?!

.Based on the Brazilian specialized media, everything seems fine, at least for the top firms. No negative news yet!

.Everything is fine even for foreign firms operating in Brazil.

.When will the crisis hit the Brazilian legal market?

.Crisis? What crisis?!

.Based on the Brazilian specialized media, everything seems fine, at least for the top firms. No negative news yet!

.Everything is fine even for foreign firms operating in Brazil.

.When will the crisis hit the Brazilian legal market?

The crisis and the Brazilian legal marketThe crisis and the Brazilian legal market


.Foreign firms can only work in Brazil as a consultant to the Law of its country of origin, regardless of hiring Brazilian lawyers.

.The barriers were established by the Brazilian Bar (OAB) in 2000.

.The lawyers behind the barriers agree that they will eventually fade. The questions is… when?

.Foreign firms can only work in Brazil as a consultant to the Law of its country of origin, regardless of hiring Brazilian lawyers.

.The barriers were established by the Brazilian Bar (OAB) in 2000.

.The lawyers behind the barriers agree that they will eventually fade. The questions is… when?

Regulatory barriersRegulatory barriers


.The debate on legal administration and legal marketing is very recent (last 5 years).

.Professional management (by non-lawyers) has yet to play an essential and strategic role.

.Some of the firms have CEOs and they are usually lawyers. Some practice, others don’t.

.Legal marketing is mostly “window dressing”.

.The debate on legal administration and legal marketing is very recent (last 5 years).

.Professional management (by non-lawyers) has yet to play an essential and strategic role.

.Some of the firms have CEOs and they are usually lawyers. Some practice, others don’t.

.Legal marketing is mostly “window dressing”.

General considerationsGeneral considerations


.Information-based decision making is rare. Decisions are mostly based on gut feelings and guessing.

.The use of technology is mostly limited to the “use of technology for the sake of technology”.

.Business intelligence is used by very few firms (“what is BI, anyway?”).

.Information-based decision making is rare. Decisions are mostly based on gut feelings and guessing.

.The use of technology is mostly limited to the “use of technology for the sake of technology”.

.Business intelligence is used by very few firms (“what is BI, anyway?”).

More general considerationsMore general considerations


.Mergers and acquisitions between firms are not regular subject of the media but they do happen.

.Corporate clients are becoming more and more strategic (and becoming more and more demanding of the legal service providers).

.An ACC-like association has been founded in 2008. Still embrionary but moving forward.

.Mergers and acquisitions between firms are not regular subject of the media but they do happen.

.Corporate clients are becoming more and more strategic (and becoming more and more demanding of the legal service providers).

.An ACC-like association has been founded in 2008. Still embrionary but moving forward.

More general considerationsMore general considerations


Questions?

Marco Antonio P. Gonç[email protected]

Questions are also welcome via e-mail.

Questions?

Marco Antonio P. Gonç[email protected]

Questions are also welcome via e-mail.

Thanks!Thanks!

20090310 - an overview of the brazilian corporate legal market · an overview of the brazilian...

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