Revenue at CCA Ontier has doubled in the last five years, but the firm has plans for further expansion and wants to become one of Portugal's biggest hitters
Lisbon law firm CCA Ontier has enjoyed a period of consistent
growth in recent years, but managing partner Domingos Cruz wants
more. "The firm has had double-digit growth for the last five
years, and in 2016 we opened an office in Oporto," he says.
"However, in three to five years, we want to be one of the top
ten firms in Portugal by any way you measure that, whether it's
invoicing, profits per partner (PPP), or number of lawyers –
we want to grow to around 70 to 80 lawyers." CCA Ontier does
not publicly disclose revenue figures, however Cruz says that the
firm's revenue has doubled in the last five years. The total
revenue of Ontier – the global firm of which CCA Ontier is
the Portuguese arm – increased 10.5 per cent to €51.2m
in 2016. Ontier has offices in 14 jurisdictions.
CCA Ontier's growth has largely been driven by work for
international clients, according to Cruz. "We have been
advising on real estate deals, M&A, as well as advising
companies opening businesses in Portugal," he explains.
"We have also been active in the Brazilian market – when
the Brazilian market fell, Brazilian investors saw Portugal as an
option." In addition, the firm has been advising a significant
number of family offices. "There has been a wide range of
investments in Portugal, some clients came from Colombia and we
have been advising start-ups from outside Portugal on setting up
here," says Cruz. "We have also been advising venture
capital firms from other countries, the number of investors coming
to Portugal is increasing." Cruz also highlights the firms
technology, media and telecommunications practice – as well
as its intellectual property team – as having been being
particularly active, especially in relation to data protection,
compliance and gambling.
Further integration
A key objective for CCA Ontier is professionalising the structure
of the firm. "We have a very professional structure, including
a finance director, an events director, a marketing director
– clients want a professional service, the growth of
non-lawyers at the firm has been greater than that of
lawyers." CCA Ontier currently has 20 non-lawyers in the firm,
along with 50 lawyers, which includes seven partners, of which five
are equity partners and two are non-equity partners. Strengthening
CCA Ontier's ties with other Ontier offices around the world is
another priority for Cruz. He says: "The main goal for us and
Ontier is to have the same clients worldwide, we want to deepen the
integration with Ontier – this could involve working jointly
on business development with Ontier in Spain, or Portuguese lawyers
doing business development in London, or greater integration of
models of working, for example having Spanish lawyers speaking
Portuguese." Cruz explains his philosophy in this way:
"When you're doing legal work, you're developing
business, and when you're developing business, you're
providing legal advice - either way you're giving
value."
Start-up culture
Portugal is currently a hotbed for technology start-ups,
demonstrated by the fact that Lisbon was chosen as the city to host
the Web Summit – Europe's largest technology conference,
an event that included CCA Ontier among its sponsors. The
firm's Startinnovation initiative seeks to capitalise on
Lisbon's status as a magnet for entrepreneurs, both in Portugal
and elsewhere. The Startinnovation team is a group of lawyers that
specialise in areas of law that are crucial to developing a
business, including private equity and venture capital, corporate,
M&A, technology and telecommunications, intellectual property,
employment, tax and international law. The team is geared towards
advising entrepreneurs and offers particular expertise in advising
start-ups and SMEs. Cruz says that CCA Ontier offers discounted
fees for start-ups, but he adds that if the firm advises a start-up
which then grows into a much larger business, it may have
"found work for the next decade". He adds: "If we
can't reach Galp, we want to reach the next Galp." Cruz
says it is also important to understand how technology companies
represent the future for many sectors. "Fintech is replacing
banks and Insurtech is replacing insurance companies."
Point of entry
However, the Portuguese economy is still "weak",
according to Cruz. "The economy spends more than it earns, and
is affected by international crises." But he adds there are
some positives in that pension funds and institutional investors
are increasingly being drawn to Portugal, and in addition,
Brazilian companies see Portugal as a "point of entry into
Europe". He adds that Portugal also has a growing reputation
as a "technology hub".
Unlike many other law firms in Portugal, CCA Ontier is not
targeting the African market. Cruz says that CCA Ontier is not
active in the oil and gas sectors, which are two of Angola's
most important industries. Meanwhile, one of the problems with
Mozambique is the fact there is a "lot of red tape", says
Cruz. He continues: "It's easier to play to Ontier's
strengths, which is in Latin America in countries such as Mexico,
Ecuador and Paraguay."
Massive discount
Cruz is a firm believer in the benefits artificial intelligence can
offer the legal sector. "Artificial intelligence can do half
of what young lawyers do sometimes for around 70 per cent discount
in cost," he says. "Consequently, law firms need to find
new ways to structure added value – lawyers need to adapt,
they need to become risk assessors and business developers, they
have to develop business acumen, but they need a solid ground of
legal knowledge." Cruz also predicts that there will be fewer
law firms in Portugal in the future. "There may be very small
boutiques, but you need to have knowledge management and that can
only be done by bigger firms," he adds. Would CCA Ontier merge
in order to get bigger? "We would consider the option,"
says Cruz.
Looking for inspiration
Ensuring lawyers work as a team is one of the main challenges
facing law firm managing partners, according to Cruz. "We need
alignment, we need to be rowing in the same direction. However, you
need to address lawyers' frustrations and ambitions, because
the new generation need to be inspired; it can be difficult to ask
them to do a 12-hour day – the new generation act
differently, their biggest aspiration is not necessarily being a
partner." Cruz adds. "You need to reward them and give
them the incentives they want."
Indeed, Cruz says the demographics of law firms will change
considerably in the future. Of the firm's seven partners, two
are women, but the balance will shift imminently. Cruz says:
"The huge majority of lawyers in this firm are women –
there will be more women partners than men in the next two
years."
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