Year 6, Issue 8 CEE September 2019 Legal Matters In-Depth Analysis of the News and Newsmakers That Shape Europe’s Emerging Legal Markets Guest Editorial: The Hungarian Legal Market - Ever Transforming, Ever Growing Across the Wire: Deals and Cases in CEE On the Move: New Firms and Practices The Buzz in CEE A Digital Debut: Interview with Thomas Kulnigg on Conda Share Digitalization All Together Now: The EU’s New Foreign Investment Screening Regulation The Corner Office: The Most Difficult Lay-Offs Market Spotlight: Ukraine Guest Editorial: Anna Babych of Aequo Beyond Dispute: Cautious Hope About Ongoing Judicial Reform Inside Out: Framework Financing Agreement for Ukraine’s Syvash Wind Farm Market Spotlight: Greece Guest Editorial: Nicholas Papapolitis of Papapolitis Backing Away from the Cliff: Signs of Hope in Greece Expat on the Market: Virginia Murray of Watson, Farley & Williams Inside Insight: Eleni Stathaki of Upstream Experts Review: TMT DEALER’S CHOICE Law FIRM SUMMIT & 2020 CEE DEAL OF THE YEAR Awards APRIL 23, 2020 CEE/YOU IN LONDON! DEALER’S CHOICE SUMMIT co-hosted BY: AND Sponsored by: PRELIMINARY MATTERS SEPTEMBER 2019 CEE Legal Matters Editorial: In-Depth Analysis of the News and Newsmakers That Shape Europe's Emerging Legal Markets THE Meta Nature OF Law FIRM Business I was found myself thinking, as we were put- focusing on those ting this issue together, about the meta nature same issues, as they of what commercial law firms do – advising themselves advise cli- clients on mergers and employment and data ents – in large part – protection issues while at the same time facing on how best to man- those same internal challenges themselves. age their own. And, of course, we have Much of our content in this issue is related to service providers of that paradox. The Corner Office feature (page our own, both law xx), for instance, is (as always) about the chal- firms and non (but The Editors: lenges involved in running a law firm business, with business practices guided by their own in- and several contributors this time around draw David Stuckey house lawyers), and the circle continues. [email protected] specific attention to the irony of needing ad- That’s how economies work, of course, as gi- Radu Cotarcea vice on how to handle their own internal em- [email protected] ployment issues. ant circles, transferring and retransferring cap- ital around and around, with sparks flying out This Table of Deals in this issue also includes Letters to the Editors: in the form of take-home pay or (temporary?) an item (page 14) on the assistance Poland’s savings. In high school my mind would have Domanski Zakrzewski Palinka recently pro- If you like what you read in these been blown by this recognition. Now, too busy vided to the DWF Group plc related to its ac- pages (or even if you don’t) we focusing on how we’re going to afford our really do want to hear from you. quisition of the legal services business of K&L operations, grow our business, and identify, Please send any comments, crit- Gates’ Warsaw office – one law firm advising train, and find qualified candidates for open icisms, questions, or ideas to us another law firm on its acquisition of a third. positions while (successfully, so far!) avoiding at: And this issue also contains an advertisement bankruptcy, I shrug and move on. [email protected] (page xx) for next spring’s Dealer’s Choice Law Still, let me stop for a moment to pay my re- Firm Summit and 2020 CEE Deal of the Year spects to everyone out there managing, main- Awards Banquet in London, which we hope Disclaimer: taining, and even expanding a CEE law firm. will be an unparalleled international network- We have seen a number of friends, in a num- At CEE Legal Matters, we hate boil- ing and business development opportunity erplate disclaimers in small print as ber of markets, suffer from the inevitable and much as you do. But we also recognize for all lawyers attending, whether CEE-based, unending ebb-and-flow of national economic the importance of the “better safe than UK-based, or other. That is, again, lawyers sorry” principle. So, while we strive for health. Things are, in most of the countries accuracy and hope to develop our read- talking with each other about creating business we cover, pretty good right now (sorry, Tur- ers’ trust, we nonetheless have to be ab- and increasing their bottom lines, rather than solutely clear about one thing: Nothing key and Russia), and we of course hope those in the CEE Legal Matters magazine or talking with clients about helping them find times last. But law firm business is never easy, website is meant or should be under- solutions to their problems. stood as legal advice of any kind. Read- even in the boom times, as competition grows ers should proceed at their own risk, and Because of course the pressure on law firm ever-stronger and clients become ever-more any questions about legal assertions, conclusions, or representations made economics, management, and revenues is nev- demanding. And in the bust … it can turn des- in these pages should be directed to the er-ending; like a newborn baby, it requires al- perate. person or persons who made them. most constant attention. And rare indeed is the So, while we enjoy the boom, let me take a We believe CEE Legal Matters can partner who enjoys those parts of the job as serve as a useful conduit for legal ex- minute to acknowledge the hard work you all perts, and we will continue to look for much as the more famous and client-focused do, in helping create and maintain these legal ways to exapnd that service. But now, parts. later, and for all time: We do not our- markets of stability, reliability, and trust. Good selves claim to know or understand the CEE Legal Matters, I suppose, is part of the work. law as it is cited in these pages, nor do equation as well. We also pay attention to our we accept any responsibility for facts as (And see you in London). they may be asserted. finances, our employees, our lease, and other internal needs, even while we report on firms David Stuckey CEE Legal Matters 3 SEPTEMBER 2019 PRELIMINARY MATTERS Guest Editorial: THE EVER Transforming AND EVER Growing Hungarian Legal MARKET After I was asked to write this Guest Editorial for CEELM memoranda and long fax- Magazine I realized that this year marks my 25th year in the es slowly disappeared. In legal business in Hungary. 2008, the financial crisis that hit the world impacted The 1990s: I graduated in 1994 and started working at our law the Budapest legal market firm in 1996, which makes me a lawyer who has not changed as well, lasting for the next workplaces during the last 23 years. I guess this might seem odd several years. to some of today’s junior lawyers, who change workplaces much more frequently. In the 1990s there was a completely different The 2010s: After the crisis, the Budapest legal market became working environment for a junior lawyer; we worked day and even more competitive. Some international firms competed night and during weekends. I remember once, working on our with ever-lower fees, gaining market share but destroying fee fifth weekend in a row, we tried to explain to our partner that levels forever. This period was about effectiveness and project we were tired – and being told to drink more coffee. Those were management. Clients became more sophisticated in Hungary the years of privatizations and frequent due diligence exercises, and they gained a better understanding of what they needed most of them based on physical data rooms(!). Those were the from lawyers. I think today Hungarian lawyers face problems golden years. Most of the businessmen and lawyers were not that are not solely local, but rather international. Globalization, used to regular transactions back then, so on many occasions outsourcing, and commoditization are issues that we need to the meetings were endless. It was normal to have meetings until address in our strategies. We also need to focus on and invest very late. My record meeting lasted until 5:00 a.m., after which in digitalization, IT, and data protection, as they have become I travelled to Tatabanya for another meeting at 9:00 a.m. Those unavoidable. We not only use e-mails now but communicate were not great years, salary-wise, but we gained experience – with courts and authorities electronically. Physical data rooms sometimes more than we desired. I believe that in that period a are long gone. What may be unique in Hungary is the rapid in- CEE junior lawyer’s life was not very different than it was for crease in the complexity of legislation, not to mention the way American or other international lawyers, despite the differenc- legal rules are formed – sometimes new rules are made in so es in the legal systems. I remember how well we understood called “omnibus acts” when one law amends thousands of legal the miserable life of young lawyers depicted in John Grisham’s rules – making it increasingly difficult to keep tabs on changes books. in legislation. To find the right young talent has become a great challenge, and law firms must now look attractive and market The 2000s: I became a partner in 2002 and started to enjoy my heavily in multiple communication channels instead of sitting life and my law career. There were numerous mid- and small- back, relaxedly waiting for CVs to arrive.