Versatile possibilities
An introduction
The fields of law
International and national law firms divide themselves (also for the purpose of manageability) into legal areas or practice groups ("practise groups"). The classification of these groups varies, of course, from firm to firm. However, the names of the groups are now almost always in English. In order for you to have a say, we will retain these. The most common groups are the following:
Corporate/ M&A/Private Equity
In most major international law firms, this is the largest area. The focus here is on advising international groups, financial institutions, medium-sized companies or financial investors on all corporate and business law issues. An important part is M&A deals, which can involve entire company acquisitions, but also spin-offs and takeovers. Mergers of two or more companies in order to pursue a common goal, so-called joint ventures, are also a topic. Frequently, however, clients are also advised on a daily and permanent basis in the so-called core corporate business (stock corporation and limited liability company law or also corporate litigation). This "corporate housekeeping" also involves all kinds of resolutions or advising board members and managing directors on all corporate law issues. By starting out in the corporate area, you are initially setting yourself up on a fairly broad footing. You can always specialize later. Companies looking for lawyers from large law firms like to hire corporate lawyers, as they usually have extensive training.
Banking & Finance and/or Capital Markets
In "Banking", banks, financial institutions, companies and public institutions are your clients - in the processing of national and international transactions. You advise on their financing activities (as borrower or lender) and/or on the development and design of new financial products. The advice is always given in cooperation with colleagues from other specialist areas, because it is important to include all legal, tax and economic aspects. For this reason, you will often speak with tax lawyers and/or business economists.
Capital market law is divided into the sub-areas "equity" and "debt" - i.e. equity and debt capital - according to the origin of the capital (and its classification in the balance sheet). In the former, initial public offerings ("IPO") and capital increases are your main areas of advice. This area is therefore often referred to as "corporate finance", as it is essentially about raising money for a company. In the field of debt capital markets law, we advise clients on a wide range of financing instruments and channels: e.g. bonds and certificates. A current topic is so-called structured finance or forms of securitization. Here, innovative, insolvency-proof ways of shifting receivables, cash flows and interests of the participating parties are conceived and implemented within structures that initially appear complicated. In essence, however, you will find that this is nothing more than pure law of obligations - general part.
There is often an interface here with the area of litigation (see below). The main points of dispute here are allegedly defective prospectuses or inadequate or incorrect investor advice.
Insolvency/Restructuring
In Germany, insolvencies of even large companies are now part of everyday business life. Insolvency by no means means means "over and done with" for a company and/or its investors, but rather an opportunity for a fresh start. That is why this practice area provides advice to creditors, shareholders and (new) investors involved in the insolvency, both in the run-up to and throughout the insolvency proceedings. This means advice on reorganization, on the assertion of security interests, on the restructuring of financing and on the acquisition of distressed companies or (currently highly topical) non-performing loans. The latter are transferred in so-called "NPL" ("non-performing loan") transactions.
Because of its intervention in all areas of law, insolvency law offers the possibility and necessity of (often cross-border) cooperation with colleagues from banking, corporate and/or litigation law.
Dispute Resolution (Litigation/Arbitration)
Her clients are national and international companies and financial institutions involved in arbitration or litigation. As a rule, these commercial disputes are sensitive and highly complex for the companies involved. This is why, in addition to your broad legal knowledge - which must range from civil procedure and arbitration law to many different facets of substantive law - your tact in dealing with clients is particularly important. Not least for this reason, litigators are often considered the "all-rounders" of law firms. In many large law firms, however, there is also a specialization among them, e.g. in corporate or banking law disputes. They are often also employed as "general commercial lawyers" and take care of the client's general terms and conditions, for example.
Real Estate
Formerly referred to and understood simply as real estate law and notarial services, this area now encompasses an increasingly complex subject matter. In recent years, it has mainly been a matter of headline-grabbing real estate transactions such as the sale of the entire residential portfolio of a city or a large company.
In the case of real estate investments "on greenfield sites" or even in urban areas, risks of a planning or land protection nature have to be assessed, among other things, and the building rights for the project have to be secured. In addition, there are issues relating to the management of real estate portfolios, often in the form of commercial tenancy law.
You should or will be familiar with the newer forms of action of the tax authorities (keywords: privatization or public-private partnership models) as well as with the administrative and approval procedures familiar from your training. In various law firms, however, only the private construction law know-how is located in the real estate area, while the public law part is handled by colleagues in "Public Law" (see below).
Their clients can be investors, developers, project managers, architects, banks, domestic and foreign fund and investment companies as well as public institutions.
Tax
The world's most complicated tax law is German - despite all internationalization. Many transactions are almost exclusively "tax driven" - and your skills are extremely challenged. This is because constant reforms by legislators and new interpretations by the tax authorities make the application of current law a daily challenge. Often, the tax departments are specialized, e.g. in the colleagues advising on company acquisitions, mergers or joint ventures, who have to reconcile the tax aspects with the other (corporate) legal and business aspects. The next ones focus on structural advice in the formation of corporations and their conversions or (re)financings; still others take care of tax-optimized solutions in the design of investment and fund structures. The art you have to learn: to be able to explain the "ruling knowledge" of tax law in simple terms to your colleagues as well as to your clients. There is another peculiarity to keep in mind here: you have to be aware early on that it is almost essential for many employers that their lawyers acquire the title of tax advisor in the course of their professional career (see also our article on the Schollmeyer & Steidl Tax & Finance Recruitment page).
IP/IT oder TMT
IP ("intellectual property") comprises what is often referred to as the "green area" (the color derives from the cover color of the standard journal of IPists - the GRUR) of industrial property rights. The value of these IP rights (such as trademarks and patents) can often account for the majority of the purchase price in corporate transactions. You therefore advise national and international companies in transactions or on day-to-day issues in this area and also appear in court to defend your clients' intellectual property rights. In addition, they often deal with the legal evaluation and admissibility of advertising campaigns.
IT ("information technology") - increasingly also referred to as TMT ("technology, media and telecommunication") - means advising clients for whom the computer or computer-based products or services in the broadest sense constitute the decisive value of their company or product or service. Their field of consulting is broad and can include, for example, concepts for corporate structures and acquisitions, joint ventures and privatizations; as well as support for operational business, the design of outsourcing projects or assistance with regulatory issues, data protection and competition law frameworks.
Employment
Labor law is also becoming increasingly international and complex. Your clients are predominantly companies (rarely individuals), whom you advise on all matters of individual and collective employment law. This may include, for example, drafting employment contracts (especially at board and executive level), establishing, amending and terminating employment relationships, negotiating social plans in the event of reorganizations, and advising on the employment law aspects of corporate mergers as well as restructurings. In the latter field, you will have to deal with "pre-merger" issues as well as be constantly asked for advice in the so-called "post-merger" phase. Not infrequently, the labor, social and pension law issues for which you can become the expert are "battle-decisive", especially in the case of corporate acquisitions, because it is primarily a matter of achieving the so-called synergy effects.
EU/Competition
You help your clients to avoid the various pitfalls of antitrust law. Your field of advice (often together in a team with colleagues from different jurisdictions) includes, for example, European and German merger control proceedings, including the necessary data procurement and collection, as well as the coordination of proceedings in individual or several countries; abuse proceedings against dominant companies and cartels; fine proceedings; public procurement; issues relating to the free movement of goods and services and the freedom of establishment, as well as state aid. Of course, you also advise and represent your clients before the relevant German and/or European courts. In this area, you can often expect to be seconded by your law firm to its Brussels office (if available) for a certain period of time.
Public Law
Public law is a broad area in large law firms. Often there is a link with various of the areas of law already discussed. In real estate law transactions, for example, questions of environmental or construction planning law are topical. There are many overlaps with antitrust law and related areas of law: Public procurement law but also regulatory issues of various economic sectors (e.g. energy, transport or telecommunications) are often handled by teams from public law.
Commercial law firms advise, for example, the public sector or any kind of investor - both pre-court and in litigation.
Industrial and or sector groups
The division into legal areas is the traditional classification grid of (inter)national commercial law firms. In the meantime, however, so-called industry groups have been set up in parallel. These groups are staffed with the necessary specialists from all areas of law and focus on clients from a particular industry, who are offered all the necessary know-how "from a single source". Target clients come, for example, from the automotive industry, the energy sector, the chemical and pharmaceutical industry, the telecommunications industry, the private equity sector and/or the insurance sector.
Summary
The choice of a field of law is a not insignificant decision for your life, to which you should give sufficient time and attention. Of course, changing or expanding your area of law in the course of your career is not out of the question. Nevertheless, the start of your career should also be well chosen with regard to your further future planning (e.g. the change to in-house counsel).
We will be happy to advise you on this and other questions. Talk to us if you are interested in starting your career in an (inter)national commercial law firm. Most of them cooperate with us in recruiting suitable career starters.