By Michael Canfield, originally published in Buffalo Law Journal, Buffalo Business First on Mar 12, 2018, 6:00am EDT.
As businesses grow beyond the borders of Western New York, many maintain relationships with their law firms. And as the businesses grow globally, so does the work those law firms do for them.
At Lippes Mathias Wexler Friedman LLP, for example, relationships established over decades with Mark IV Industries Inc. paved the way for its current work with globally ambitious clients. The firm represented Mark IV from 1985 until 2000 when it was purchased by a private equity firm in Italy.
When a company is acquired in a state other than New York, the firm will work with local counsel to provide assistance on matters specific to the laws of the state where the company is located, he said.
In states where the firm doesn’t have an established relationship with local counsel, Lippes attorneys find and interview firms and then make a recommendation to the client.
“To the extent that we need that guidance on local law,” Schulz said.
As Buffalo’s economy has picked up, so has the number of acquisitions by local clients, said Brendan Rich, a partner at Lippes Mathias.
As clients grow, he said it makes sense for them to stick with their local law firm because it has all the historical data on a company and how the corporate structure is laid out.
“That is an advantage of working with a firm that has been with the company for a while,” Rich said.
According to Schulz, there’s an economic advantage to working with a Buffalo firm as opposed to a New York City firm, based on hourly rates. Also important: A law firm must have the client’s confidence.
David Murray, a partner at Phillips Lytle, said that for many years, it was a “well-kept secret” that many businesses in Western New York have substantial international components.
Murray said clients looking for an international presence are doing it through acquisitions rather than trying to establish a new operation.
Asia is a different story, according to Murray. While investment in such regions as China has grown over the last 15 to 20 years, it can be difficult for a midlevel company to grow inorganically and buy something in China.
The firm’s role internationally is similar to what it is domestically, Murray said.
Along with local laws, there are numerous U.S. laws that need to be accounted for in international transactions.
Last week, President Donald Trump announced that he was going to put tariffs on steel and aluminum.
While it’s too early to tell what the impact of that will be, it’s something clients are looking at, Murray said.