Dentons Dacheng merger described as high risk
The merger that has created the world's largest law firm is being described as both 'very forward-looking' and 'high-risk' by the consultant who advised on the McDermott Will-MWE China Law partnership.
Peter Zeughauser said: 'Dentons has done a very forward-looking move, but it’s high risk, too. People are going to watch this carefully.' In the past, he says, Chinese lawyers have tended to work as individuals, even if they are in firms. So they take a fixed percentage of their gross billings and pay their own secretaries. Mr Zeughauser said that the relationship is, essentially, 'what we would call a hotel for lawyers'. In such circumstances, individual lawyers may feel they have little to gain from referring work to others.
Mr Zeughauser added: 'The deal will not ever achieve its full potential if it’s not a full and integrated firm that can drive work across the platform, and that requires a full cultural assimilation.' Source: Globe and Mail