I have now spent more than 25 years in the legal advisory business world. With my core focus on cross-border M&A transactions for Austrian and international clients and having worked on many deals that also covered the Central and Eastern Europe (CEE) region, I have witnessed lawyering in CEE register remarkable growth and sophistication over the past years.
International standards are now prevalent, particularly in M&A transactions and regulatory compliance. Many CEE countries are witnessing economic growth, which has positively impacted demand for legal services, especially in sectors like technology, real estate, life sciences, industrials, and energy. Here are some key trends and developments:
A Maturing Legal Market
The legal industry in CEE has rapidly developed since I started working in the late 90s, with law firms growing (in revenue, fees per fee earner, and headcount) and becoming more and more specialized. Many US and UK law firms have set up offices in the region, playing an active role in the legal market by transferring knowledge, training the younger generation (partially also abroad), and introducing best practices. In the CEE region, international law firms have significantly shaped the market, but domestic firms have also grown in prominence. These local firms offer deep insights into regional markets, are often politically well-connected with local peers, and are regularly very cost-effective for clients. While international law firms are prominent, there is also a rise in the stature of local or regional firms. Many domestic firms are gaining reputations for their understanding of local markets, making them key players in CEE’s legal landscape.
Focus on Compliance and Regulatory Law
In recent years, regulatory law has become a prominent area of focus, driven by the EU’s growing influence on Member States’ legal frameworks. This includes matters related to the GDPR, competition law, anti-money laundering, and energy regulations. CEE countries that are part of the EU must comply with the European legal framework, which has increased demand for legal expertise in these areas. The latest regulatory regime to handle is the EU sanctions rules against Russia introduced as a result of the war in Ukraine.
Energy Transition and Infrastructure Development
Another noticeable trend is the increased legal support required for infrastructure and energy projects, particularly in renewable energy. With governments across the CEE region prioritizing sustainability and climate-related initiatives, law firms are increasingly advising on energy transition projects, particularly in wind, solar, and hydropower projects.
Legal Tech and Digitalization
The rise of legal technology is also being felt in CEE. While still developing, there is a growing interest in legal tech solutions, including e-discovery tools, contract automation, and AI-based legal research tools. Law firms are increasingly leveraging technology for efficiency, including AI tools for document review in due diligence processes in the M&A world as well as management systems to streamline operations.
Private Equity and M&A Activity
Another very active area for legal professionals in CEE is advising on mergers and acquisitions. Many global and regional private equity firms are actively investing in CEE, leading to a high demand for legal services in corporate and M&A law, tax structuring, and due diligence exercises.
In particular, Austria-based players benefited a lot in the past from the strength and growth of the CEE region – especially the large financial institutions and insurers. Regarding the law firms, I believe those that are most integrated and can, therefore, offer seamless advice across the CEE countries will continue to be highly successful.
By Christoph Mager, Country Managing Partner, DLA Piper Austria
This article was originally published in Issue 11.10 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
