Urbaser's Santiago Sainz de Baranda y Casado says his company's preference is for law firms with an office in Spain as well as in the foreign jurisdictions in which it operates
Using an external law firm adds value in many ways, especially
in terms of the level of knowledge they can bring regarding
specific issues, such as the environment, competition and
intellectual property, says Santiago Sainz de Baranda y Casado,
corporate legal director at environmental management company
Urbaser in Madrid. He adds that external firms can also add value
when it comes to issues related to the expansion of the business,
such as acquisitions and tender processes.
"For us, the ideal law firm is a global one," says Sainz
de Baranda y Casado, who adds that, ideally, when it comes to
matters outside of Spain, Urbaser wants a firm with an office in
Spain as well as in the relevant jurisdiction. However, he adds
that the company is also happy to deal with firms that have close
relationships with other firms in foreign jurisdictions. "We
also like Spanish firms with international alliances, as that
allows us to have control through a trusted local firm, with a
representative office in the target country," he says.
M&A increasing
Urbaser has a number of preferred firms it works with on a regular
basis. "Personally, I like the structure and the concept of
the Spanish firm Ontier, for example, which has a global network of
local offices that are incorporated into the organisation without
losing their idiosyncrasy," Sainz de Baranda y Casado says.
"However, there are some firms we use frequently, such as
Gómez-Acebo & Pombo, which we could call our family law
firm, Hogan Lovells, DLA Piper, EY, KPMG, Dutilh, Clifford Chance,
Cuatrecasas and Garrigues," he adds.
Urbaser specialises in waste collection as well as the construction
and operation of waste treatment and recycling facilities, with a
presence in 21 countries in Europe, Asia, Africa and the Americas,
employing around 40,000 people and serving around 50 million
people. Urbaser's Spanish parent company, Grupo ACS, was
acquired by Chinese company CNTY in 2016, and this has led to an
exponential increase in M&A operations as well as an increase
in Urbaser's participation in international bidding rounds,
Sainz de Baranda y Casado says.
This expansion of Urbaser's global presence has also led to a
significant increase in workload for the company's legal team,
says Sainz de Baranda y Casado. "We select law firms based on
the specific case at hand," he adds. The company runs tenders
in order to select the firms. "Obviously, we only allow the
firms we are interested in to participate in the selection process,
and prior experience carries a lot of weight, as well as the
quality of their services, which will have generated a relationship
of trust with them," Sainz de Baranda y Casado explains.
Specialisation required
He adds that Urbaser always looks for a high degree of specialism
in its external lawyers and in their team, especially as Sainz de
Baranda y Casado views teamwork as tremendously important. He also
says that there are occasions when, due to strategic needs or
international issues, the company will select a firm, rather than
an individual lawyer. But he adds that those selected are
"always top-tier firms".
Urbaser's in-house legal team, which comprises sixteen staff
– including two assistants, one paralegal, as well as
in-house lawyers in the company's international offices –
provides global legal advice related to the company's
day-to-day operations, and also has significant influence on
decision making, Sainz de Baranda Casado says.
However, the advantage of using external law firms is their
specialisation, he adds, though he points out that it is also a way
of outsourcing work of less value that has a less direct
relationship to the business. "Work regarding joint ventures
is also externalised, as a means of reducing the responsibility of
the joint venture partners in relation to certain legal
issues," says Sainz de Baranda Casado. "And the only
disadvantage could be the potential loss of control of the issue in
question," he adds. However, Sainz de Baranda y Casado says
the company has "never had a bad experience of that
kind". He points out that any such negative experience would
result in a loss of confidence and prevent the company from using
the same firm again.
Santiago Sainz de Baranda y Casado, corporate legal director at environmental management company Urbaser
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