Orrick: quick fire deployment in Europe

Founded in San Francisco in 1863, Orrick has gradually shaken off its image as a Californian firm to become a genuine global practice in just 15 years or so. Since the 2000s, when the firm broke into the Russian, French and British markets, the organization has always followed the same deployment plan, by taking over teams with a strong presence on their respective markets. Recent examples of this strategy include the merger with the German firm Hölters & Elsing, and the recruitment of 30 lawyers from the now defunct US firm Heller Ehrman.

Since the arrival of Ralph Baxter at the head of the firm in 1990, the firm that hails from California has not stopped growing, both in the US and on the international stage, irrespective of the prevailing economic conditions.

The 1990s: the emergence of a global firm

In the 1990s, Ralph Baxter, a specialist in labor law with a strong entrepreneurial spirit, turned the firm founded in San Francisco in 1863 into a genuine international practice. The law firm quickly became a leading light on the West Coast, with offices in Los Angeles, Sacramento, Orange County and Silicon Valley, which is strategically important and the largest in terms of headcount. Ralph Baxter also succeeded in pushing through some major changes to reinforce Orrick’s New York office, which opened in 1984. The Big Apple is famous for its stiff competition, and Orrick also had to fend off the other Californian firms that had recently entered the West Coast market, such as Latham & Watkins and Gibson Dunn & Crutcher. So what was the chairman’s strategy? To take over teams of lawyers, including the labor law team from the giant Baker & McKenzie. The Californian firm further extended is coverage of the region by opening a practice in Washington DC. By this point, Orrick had become an American firm, as is demonstrated by the fact that the New York office has outgrown the historical San Francisco office, with more than 200 lawyers. Alongside this domestic growth, Orrick opened three offices in Singapore, Tokyo and London, in 1996, 1997 and 1998 respectively. The firm opted to become established on the most active financial markets in the world. The firm’s next move was to become more visible on the European market. For this purpose, the firm wanted to conquer Paris, and efforts were focused on the French capital rather than the City.

The 2000s: European expansion starts in Paris

Long before the merger with Rambaud Martel gave birth to Orrick Rambaud Martel, the law firm had already gained a foothold in France. In 2002, Orrick followed its usual strategy by taking over a team of lawyers from Watson Farley & Williams, a British practice established in Paris, which was renowned for its shipping activity. This team, headed by the partner David Syed, joined forces with the American firm in October 2002. He was quickly tasked with a leading role in the firm’s development when he was appointed senior partner in charge of Orrick’s European strategy. Orrick continued to grow in Europe, opening offices in Milan and Rome in 2003. But the teams in the UK and France were still too small for Ralph Baxter. In 2005, the London-based headcount was doubled when 34 lawyers arrived from the now defunct Coudert Frères. Orrick’s strategist then focused his efforts on the French capital. Like many other American firms, he entered negotiations with independent firms on the market, while continuing to expand internationally.

In June 2005, the law firm opened an office in Moscow, taking over the Russian practice of Coudert Frères. Just a few months later, in November 2005, Orrick opened its first Chinese office on the top-ranking financial market, Hong Kong. Here again, 20 lawyers from Coudert teamed up with Orrick. Ralph Baxter also came to an agreement with Coudert regarding its offices in Shanghai and Beijing, and set up in Taipei shortly afterwards. In less than one year, the American law firm had become established in Asia and Russia. But the firm’s strategy does not stop there. Yet again, it needed to bolster the strategic bridge between America and Asia.

Paris: Orrick’s fourth largest office

Despite its well reputed Parisian practice, headed by David Syed, Orrick wanted to further increase its visibility on the French market, which was undergoing a profound change. Orrick pursued this goal by contacting a number of local firms since 2000. The meeting with Jean-Pierre Martel’s team was decisive, and the union of the French M&A specialist and the American financial expert seemed inevitable. On 1st January 2006, Orrick merged with the prestigious Parisian practice Rambaud Martel, giving birth to a full service practice with a team of well renowned lawyers in their respective fields. The merger between these two leading law practices was “the achievement of strategic goals shared by both parties”, explains Leslie Jay, an American partner from San Francisco who moved to Paris in 2006. Three years later, he is still there! Working as the “American agent” in the Paris office, he has been able to share his experience acquired during five years on Orrick’s executive committee, and to take a break from his work as a legal consultant and lawyer. In his own words, Leslie Jay is the Paris office’s facilitator. While protecting the firm’s American culture, he helped the Parisian office to grow, especially when a younger generation took control of the practice, with the appointment of Pascal Agboyibor as Paris office leader in 2008. In just four years, Orrick’s Paris office has grown significantly, from 80 lawyers to 110 today, including 31 partners.

In 2008-2009, despite the fragile economic climate, Pascal Agboyibor “realized the development ambitions” of the firm. Orrick opted for growth, taking on new, established expert partners in order to bolster a number of the firm’s activities, such as PPP, restructuring, banking, finance and regulatory. The Paris office remains ambitious. The goal of the Paris Managing Partner is to transform the Paris office into a high-ranking full service operation.

Onward with international development…

According to the Global 100, Orrick’s revenue increased from €400m in 2003, to $772m in 2007 and $835m in 2008. On the strength of its sound financial health, Orrick now plans to consolidate its international position. With offices strategically located at the heart of the world’s leading financial centers, the US firm can reach markets such as India - through its London office, which operates a team dedicated to Indian customers – and North Africa. Unlike their French counterparts, very few Anglo-Saxon firms are located in Africa. But with its Paris office, Orrick has the possibility of working on numerous infrastructure projects in North Africa, which sometimes represent up to €1 billion. At the same time, Ralph Baxter intends to further strengthen his London office, which has some 50 lawyers. In the coming months, efforts will also focus on Moscow. The chairman is quite aware of the very high staff turnover in Russia, where international firms face very stiff competition. And the US has not been neglected, with the arrival of some 30 lawyers from the Californian practice Heller Ehrman, which was wound up at the end of 2008. These reinforcements have been dispatched to the San Francisco, Washington DC and London offices. Orrick has also hired a star of corporate affairs in its London office, in the shape of Hilary Winter from Jones Day.

… with Europe in the firing line

Orrick is also paying very close attention to the German market, where the arrival of foreign firms has been even more aggressive than in Paris. In the autumn of 2008 it announced the merger with the independent German firm Hölters & Elsing, one of the most respected practices in Germany, with customers including Pfizer, EADS, Thales, etc. This merger has allowed the US law firm to extend its European presence, thanks to Hölters & Elsing’s offices in Düsseldorf, Frankfurt and Berlin. For the Senior Partner for Europe, David Syed, this merger has allowed Orrick “to acquire two leading firms in the two largest economies in continental Europe – France and Germany – that have very close ties”. Almost 25% of Orrick’s lawyers now practice outside the US, and the proportion continues to grow. So what’s the next step for the Californian giant? The firm seems to be taking a very close look at the Middle East…