Sullivan & Cromwell

Sullivan & Cromwell is among the premier dealmaking firms in the world. On a per lawyer basis, it likely takes the top spot. It has not relied on lateral hires, black box compensation, laser-focus on private equity or any of the techniques generally associated with modern US law firms to achieve this. Rather, the firm generally (and the London office is no exception in this regard) has relied on its traditional roots. Before those traditions are considered, it is worth looking at the transactional prowess of Sullivan & Cromwell (and its London office in particular) in greater detail. Globally, the value of the matters advised on over the course of the past year exceeded that of any other firm. Astonishingly, this reflects nearly 13% of total M&A deal value worldwide. Their dominance also extends to deal-ancillary practice areas. A great example is the firm’s capital markets practice, where the firm again leads all others in terms of overall value worldwide. All of this is achieved with total associate numbers nearly half of those of the firms ranking near them in these rankings. The result is incredible per lawyer and per partner profitability. PEP is pushing £5 million and PPL is within striking distance of £1.8 million. From the perspective of those in the London office, this is to be celebrated as much as those in the firm’s New York home given that the firm maintains a single, transparent equity pool and ladder. Therefore, the firm’s London partners reap the same ample rewards as those stateside. As suggested earlier, this expertise (and resulting profitability) has come off the back of an embrace of traditionalism, rather than an abandonment of it. This is true first in respect of the firm’s ‘relational’ approach to business development. Rather than relying merely on pitches, the firm has over the course of many decades developed an extremely loyal cadre of core clients in respect of whom it expects to advise regarding complex transactions. The most emblematic example of this is the firm’s special relationship with Goldman Sachs. Sullivan & Cromwell has maintained close links with the leading investment bank for nearly one hundred years, and continues to be the banks’s go-to-adviser in the US and the UK. It is also true in terms of the firm’s famous disdain for modern, quantitative, or excessively ‘corporate’ approaches to shaping its practice. Where modern business principles or measurable KPIs might suggest churning out private equity deals should be incentivized, Sullivan & Cromwell has always let its lawyers pursue interesting, novel matters first. This has been an effective strategy. To start, such novel cases are often high revenue matters to begin with. Further, winning novel cases helps to cultivate the sort of name-brand recognition which wins mandates for more ‘run-of-the-mill’ matters. A great example of this strategy at work in the London office occurred this September, where the firm represented e (a UAE telecoms operator) in the first ever Foreign Subsidies Regulation clearance before the European Commission. By establishing a reputation as practicing at the ‘bleeding edge’ of the law in this respect, Sullivan & Cromwell has positioned itself well to win subsequent business in this space.