Slaughter and May’s renowned ‘best friends’ network, known for its tight-knit collaboration among elite European firms, is undergoing a transformation that sees US law firm capability becoming the main cornerstone of global M&A work.
Recent trends indicate that these best friends, including BonelliErede, Bredin Prat, De Brauw Blackstone Westbroek, Uría Menéndez, and Hengeler Mueller, are turning more towards larger U.S. firms like Kirkland & Ellis, Freshfields Bruckhaus Deringer, and Latham & Watkins, signaling a growing importance of U.S. capabilities in major M&A endeavors.
While the ‘best friends’ network has traditionally thrived on mutual referrals, knowledge-sharing, and joint training, recent months have seen scrutiny over its effectiveness.
An analysis by Law.com International in September 2023 revealed a decline in collaborative M&A matters within the network since 2020.
Fresh data from Refinitiv covering the last three years further highlights a shift, with Slaughter and May being outranked by seven other firms, including Freshfields, Latham & Watkins, and Kirkland & Ellis, in terms of collaboration frequency on international deals.
The top three firms leading collaborative efforts with the best friends network are Freshfields Bruckhaus Deringer (25 deals), Latham & Watkins (20 deals), and Kirkland & Ellis (19 deals), indicating a noticeable move toward U.S. players in the collaborative landscape.
This evolution raises questions about the ongoing relevance of the ‘best friends’ model, with some industry commentators suggesting that the demand for U.S. capabilities is becoming increasingly crucial for significant M&A transactions.
According to a lawyer from a leading U.K.-founded firm, the legal landscape might see fewer elite firms in the future, with those remaining operating globally and actively pursuing a U.S. strategy.
The limited U.S. presence of ‘best friends’ firms, such as Uria and Slaughter and May, could be a contributing factor to this shift.
The data suggests that when external counsel is sought, there’s a growing preference for firms with both U.K. and U.S. capabilities. European outfits are anticipated to increasingly turn to U.S. firms like Kirkland and Latham for their cross-border expertise as clients bring more complex issues to the table.
Despite the apparent decline in the frequency of collaborations within the network, insiders defend the ‘best friends’ model, emphasizing that it remains a valuable choice when deemed appropriate. They argue that the network’s strength extends beyond announced deals, involving close relationships, joint events, and referrals that may not always appear in the data.
While acknowledging changes in collaboration patterns, insiders maintain that the ‘best friends’ network continues to serve its purpose, providing a platform for diverse legal interactions beyond M&A, ensuring a robust and dynamic relationship among member firms.
