Nestor did not indicate how high he expects the decline to be or the result registered last year, but according to previous declarations the firm exceeded its 2008 budget by 10 percent.
“I do not believe that anyone can make a realistic estimate for 2009 at this time. However, I can say that we are expecting a decline in turnover, due to drops on the entire legal service market,” added Nestor. He indicated that a drop in turnover will also significantly affect profit. The firm presently has 115 lawyers, and this number is not due to change this year. “We do not intend to lay off lawyers involved in affected segments,” said Nestor.
Law firms have been hit by a drop in activities such as capital markets, banking and finance, mergers and acquisitions, and real estate, so these are moving into other business segments.
“The area with the greatest potential this year will be litigation, which has registered constant growth, due to conditions in the business environment, such as instability, bankruptcy, and a need for efficient protection of rights stipulated in contracts,” explained Ion Nestor. The local legal market, valuated last year with a wide €150-250 million margin, is faced for the first time with a decline, after annual growth of 30-50 percent.
Nestor estimates that Romania’s legal market will drop this year by some 15 percent. The local market is dominated by Romanian firms, such as NNDKP, Musat&Asociatii, Tuca Zbarcea&Asociatii, Popovici Nitu&Asociatii and Bostina si Asociatii.
