Parques Reunidos' local operations
choose law firms for day-to-day legal work, but for complex
matters, the central legal team asks three firms for proposals
Madrid-based leisure park operator Parques Reunidos manages a
total of 62 theme parks, water parks, zoos and marine parks in 14
countries, employing around 18,000 people during high season.
Founded in 1967, the company has acquired numerous parks and their
subsidiaries over the last decade, transforming it into a global
brand. Its most recent acquisition, the Miami Seaquarium in 2014,
reinforced the company's presence in the US market, where it
owns and operates some 22 parks through its subsidiary Palace
Entertainment.
In its pursuit of such an aggressive expansion strategy – in
a sector expected to be worth $44.3 billion by 2020 according to
Global Industry Analysts, due to the world's middle class
growing and accruing more purchasing power and leisure time –
Parques Reunidos relies on external law firms for advice on every
stage of the M&A process. In addition, the business also turns
to external legal advisers for advice on other kinds of complex
transactions and litigation in foreign markets, according to
Cristina Carro Werner, head of the company's Madrid-based
corporate legal department. "We are all Spanish lawyers in the
legal department here and therefore have logical limitations when
it comes to offering legal advice in other jurisdictions," she
says.
External lawyers consulted
M&A and corporate transactions – as well as other
similarly complex matters such as management contracts – to
be implemented outside of Spain require the advice of a local
external law firm to ensure there is adequate legal and risk
analysis as well as full compliance with local regulations, Carro
says. She adds that this is always closely coordinated with, and
with the full involvement of, the central legal department. For
matters relating to Spain, the central legal department deals
directly with day-to-day legal tasks, unless an issue is
sufficiently complex to merit seeking a specialised counsel –
this is determined on a case-by-case basis, depending on the
specific issue to be dealt with and its complexity. Carro cites
examples such as IPO processes, complex technical litigation and
M&A transactions involving due diligence and anti-trust
considerations.
Freedom of choice
All jurisdictions report key legal matters on a recurrent basis to
the company's central legal department in Madrid, and for that
purpose the company has outlined several policies and procedures
which explain in detail how legal matters will be handled and the
respective reporting obligations for the local jurisdictions, Carro
says. For day-to-day legal matters, local jurisdictions are free to
handle and choose local law firms, but for matters of more
complexity or importance for the group, the involvement of the
Madrid legal department is required.
Personal recommendation
Having worked in the legal profession for many years, Carro says
she often relies on her many contacts by asking them for
recommendations when it comes to choosing a law firm outside Spain
to take on a particular case. She requests at least three proposals
from law firms, choosing the best offer for the case in question.
"We don't have a particular law firm that is in charge of
all of our relevant legal matters," she says. "We are not
faithful to one particular firm, it depends on the case –
competition is high, there are many excellent professionals, which
is very positive for the legal market." Carro stresses the
importance of personal recommendations when selecting external
lawyers. "Due to our in-depth legal knowledge, and the
contacts we have in international law firms, for international
transactions we will send a petition to the firm for them to
recommend someone from their local offices in a particular
jurisdiction," Carro explains. "We often come across
lawyers after them having been recommended to us by one of our
contacts."
Turning to directories
However, Carro says if no recommendation is received, the
company's legal department will consult legal directories,
specifically the Legal 500 and Chambers. "Such guides are
reputable and their researchers are competent," she adds. Once
at least three law firms have been approached for proposals for a
specific case, the legal department will then analyse their
economic and technical proposals in order to select the best offer.
"We are very open in that respect with all the
participants," she says.
Cristina Carro Werner is head of Parques Reunidos' corporate legal department
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