We recently published an analysis of the leading elite law firms in Latin America according to some of the main international directories (Chambers and Partners, The Legal 500, and Leaders League). The selection of firms was based on their recognition in the areas of Mergers and Acquisitions, Tax Law, Labor Law, Dispute Resolution, and Banking and Finance, country by country in Latin America (Spain, Portugal, Latin America, and Central America), as these are key areas within corporate law and were chosen by our research team.
The legal market in Central America is increasingly competitive and different business models coexist: from the classic large national firms, increasingly established in their jurisdictions; medium-sized and multidisciplinary firms, boutique firms highly specialized in one or two practice areas; or even the arrival of some international firms in recent years, such as EY, Dentons, Ontier, Ecija, among the most notable movements.
The jurisdictions analyzed were: Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. Regarding the results obtained, the selection of the main Central American firms, according to the selected international directories, is: Aguilar Castillo Love; Alemán, Cordero, Galindo & Lee; Arias; BLP; Consortium; Arias, Fábrega & Fábrega; Galindo, Arias & López; Mayora & Mayora; and Morgan & Morgan.
What’s next?
To delve deeper into the current state of some of the leading firms, we spoke with Carolina Flores, managing partner of Arias and head of the Tax Department since 2001, and with David Gutiérrez, partner and co-founder of BLP. Since 2017, he has led the firm’s representative office in Madrid, with his practice areas being Corporate and Commercial Law, Mergers and Acquisitions, andInfrastructure financing. We also spoke with Valeria Di Palma, Managing Director of Consortium Legal, a business lawyer with extensive experience who also drives corporate social responsibility programs in each of the firm’s five Central American offices through environmental and human development committees. We also interviewed Francisco Arias G., a partner at Morgan & Morgan, who leads the firm’s mergers and acquisitions, securities and capital markets, intellectual property, and real estate practice groups.
For this special report, the experts reviewed their experiences within their firms during the first half of the year. They also provided a brief overview of the operations and/or economic sectors in which they have focused their efforts to date.
For Carolina Flores, Arias has had a very active first half of the year. Free Trade Zones have been one of the economic sectors that has generated the most work: “The tax incentives that Costa Rica offers, the high quality of its human talent, and the country in general, attract companies to open operations and continue to establish themselves here. The new boom in Costa Rica as a tourist destination and for investment in coastal properties has generated high demand in the real estate sector. Mergers and acquisitions have had a good start to the year, historically being one of our main practices. Labor and tax law have been key areas within this practice, while environmental law is a pillar of the country’s economic model.”
Meanwhile, David Gutiérrez noted that this year marks a significant milestone for BLP, as they celebrate their 20th anniversary: “This achievement has motivated us to further strengthen our presence and commitment to the Central American legal market.” Recently, the firm added a new and prominent partner who will operate in the Guatemala office to bolster its legal services in the region.“The arrival of Jorge Arenales to our team reinforces BLP’s position as the leading legal advisor in Central America. He has extensive experience and outstanding capabilities in corporate and financial matters.”
Regarding practice areas, the co-founder of BLP highlighted that all are particularly active during the first half of the year: “We have been involved in a variety of matters related to financial, corporate, transactional, and mergers and acquisitions practices. In addition, we have observed an increase in demand for legal advice on compliance, regulatory, and tax matters, reflecting the importance that companies are placing on regulatory compliance and the proper management of their tax obligations.”
For her part, Valeria Di Palma highlighted that the current moment “is being experienced with a very marked boost in foreign investment, cross-border banking transactions, and M&A. The banking and financial sector is very active in restructuring the debt of commercial and corporate companies, which are particularly hard hit by the pandemic, such as the tourism sector. Technology companies in the financial sector are gradually venturing into the fintech ecosystem.”
Regarding the type of operations and/or economic sectors where the firm has a presence, Valeria noted that there is “a large flow of work in corporate, commercial, and free trade zone real estate development in our region. There is also a lot of activity in commercial loans, fintech, and regulatory consulting.”
Francisco Arias G. has noted that “this year, Morgan & Morgan celebrates its first centenary, remaining one of the most recognized law firms in Panama. The first half of 2023 was marked by the closing of important transactions in various sectors, including projects and energy, capital markets, mergers and acquisitions, and banking and finance.”
At an operational level, the partner told us that the firm recently completed the migration to an advanced ERP system calledAmadeus Legal Software significantly accelerates the efficiency of daily operations with its clients. In addition, they launched the Morgan Net portal, which allows for the centralized management of multiple online services, including the receipt, preparation, and feedback of documentation and information regarding specific services.
“Finally, we highlight the recent launch of the IDEA Committee (Inclusion, Diversity, Equity and Support), through which initiatives will be developed to promote a culture for an environment free of violence and discrimination in the firm.”
Challenges and growth forecast
Carolina Flores emphasized that “we have a forecast of sustainable growth, characteristic of a mature firm like Arias. As in previous years, in 2023 we set challenging goals that maintain high standards and drive us to thrive. The main challenges are retaining the top talent we have always attracted. We are seeking to balance new hybrid work styles with the need to maintain our culture. We have made an effort to return to in-person work, at least partially.”
Along the same lines, he emphasized that it is “key to maintain the world-class service standards to which our clients are accustomed.” He stated that one of the challenges is the national situation: “The current government has taken measures that could affect the attraction of foreign investment, a pillar of our economy, so we must not only keep a close eye on the national environment, but also take timely measures if necessary. We must be very flexible and adaptable to adjust easily to changes.”
David Gutiérrez has stated that, although some countries in the region are experiencing complex economic and political situations, this presents a significant challenge that “can offer us opportunities to provide innovative and strategic legal solutions to our clients, who may require additional advice to navigate changing and complex environments. We are committed to supporting our clients in achieving their business objectives and adapting to changing circumstances, offering tailored solutions for their specific needs.”
Regarding growth forecasts for 2023, “we remain optimistic. Based on our consistent growth in recent months, we expect to maintain a positive trend for the remainder of the year. While it is difficult to make precise forecasts due to the ever-changing nature of the business and economic environment, we are committed to continuing to expand our client base, strengthen our strategic alliances, and diversify our legal service offerings.”
According to Valeria Di Palma, digital transformation is here to stay and is both a challenge and an opportunity in itself: “At Consortium Legal, we are doing our part to understand how to combine technology with a client-centric culture that allows us to develop lawyers who understand our clients’ needs and place them at the center of their management, offering them dynamic and innovative solutions.
At the internal level of the firm, we continue working on continuous improvement projects, currently analyzing our status quo in technological terms, to seek to be accompanied by the most appropriate technology that will help us to be more efficient in our internal processes and, in this way, provide effective solutions and efficient service to our clients.
We remain focused on our 2023 strategic plan, and growth is projected in those areas that support the legal function and assist our lawyers in delivering the best legal service.”
Finally, Francisco Arias G., a partner at Morgan & Morgan, noted that they anticipate “an increase in demand for services related to Immigration and Labor Law, following recent changes in immigration and labor regulations for multinational companies in Panama. In addition, they expect an increase in inquiries in areas such as Tax Law, Intellectual Property, and Technology Law regarding local regulations on e-commerce, fintech, startups, and other related matters.”
The lawyer has announced that they will inaugurate the Investigations, Compliance & Ethics area in the firm in conjunction with the Criminal Law team.
