Pandemic hits Spanish legal giant Garrigues' revenue growth

Pandemic hits Spanish legal giant Garrigues' revenue growth

The law firm claims it emerged stronger in 2020 despite the economic slowdown caused by Covid-19

The Spanish legal giant Garrigues has claimed that it emerged stronger in 2020 despite the economic slowdown triggered by the Covid-19 pandemic. Its revenue grew by 1.4 per cent to €386.9 million.

The growth rate, however, was much slower compared to 2019 when its overall revenue had witnessed growth to the tune of 4.4 per cent.

The global law firm attributed the slower growth rate to the sharp decline in Latin American currencies following the outbreak of the Covid-19 pandemic.

Garrigues operates in the Hispanic countries of Latin America including Brazil, Chile, Colombia, Mexico and Peru. It has a network of 2.125 professionals across 32 locations. The overseas network accounted for nearly 13 per cent of the firm's total revenue in 2020.

Fernando Vives, Garrigues Executive Chairman, however, claimed that despite the uncertainties caused by the pandemic and the resultant large-scale global challenges the firm had emerged even stronger.

Unlike others, who resorted to panic measures to cut down on expected revenue decline, Garrigues exhibited extraordinary resilience. Instead of pressing the panic button and going for layoffs, salary freeze or reductions, the firm preferred to retain its existing staff in its international network.

Its investment worth €55.1 million over the past half a decade in digital transformation also came in handy as it was able to channel 3.1 per cent of 2020's revenue into digitalization and innovative projects.

The law firm's corporate and commercial departments kept its flag flying high by accounting for 33.7 per cent of the revenue last year.

Garrigues recorded a total of 151 deals in 2020, worth €15.28 billion and topped the legal adviser rankings by numbers of mergers and acquisitions in Spain and Portugal, though the M&A transactions in Spain were impacted by the pandemic. Still, Garrigues managed to retain its pole position by closing 135 deals worth €14.42 billion in Spain, accounting for 16.5 per cent of the Spanish total for the year.

Notably, Spain's legal market managed to perform better compared to other businesses in the country due to the restricting undertaken by so many firms after the pandemic triggered the economic slowdown. It has kept the law firms occupied and busy, though uncertainties about the future continue to exist.