ODI Law Partner Tine Misic and Peterka & Partners Managing Partner Ondrej Peterka look at Slovenia’s appeal for regional firms’ entry into the market, the Bar Association’s reception, and what it all means for domestic competition.
Regional Firms Do Bet on Slovenia
Commenting for the October 2024 issue of the CEE Legal Matters magazine, Kavcic, Bracun & Partners Managing Partner Simon Bracun said that “while large international law firms already serve significant international clients in the region, Slovenia’s relatively small market size and the presence of highly skilled domestic firms contribute to intense competition within the country.” Consequently, Bracun felt at the time that “major local players opt for regional alliances and/or cooperation with domestic law firms on a case-by-case basis, instead of directly entering the Slovenian market and competing for what they perceive as a relatively small share.”
Despite this, two prominent regional firms have entered Slovenia’s legal market since 2024: Austria-based Cerha Hempel via an established partnership upgrade, and Czech Republic-based Peterka & Partners as a greenfield launch.
Both moves apparently made sense, but in different ways.
“In the [Cerha Hempel] case, it looks from the outside as an organic step, upgrading previous cooperation between the Austrian firm and the Slovenian incumbent entity,” Misic begins while also underlining that “it need not be overlooked that various Austrian firms had already set boots on the ground long before this.” Indeed, CMS, Schoenherr, and Wolf Theiss have been on the ground for years. “That said, it is worth noting that an established business has been harnessed for the purposes of market entry, unlike in the [Peterka & Partners] case, where we can speak of a complete greenfield entry.”
With Vienna standing out as a go-to regional business hub, Misic feels that “the Austrian firm will have certainly streamlined its otherwise outsourced presence in Slovenia. On the other hand, the Czech firm is seemingly looking to bolster its regional presence by adding another jurisdiction to its roster, although on a much smaller scale than in the Austrian case. Regional synergies are apparently being sought by the Czech entrant, although it remains to be seen to what scale the operations may evolve, in particular, given the differing genesis of both operations.”
Bar’s Stance: Cautious but Open
While regulators haven’t yet put up any roadblocks, surprises may lie ahead.
Peterka has quite a positive take on their expansion experience, indicating that his law firm had no problems moving into the Slovenian market. “The Bar Association was very welcoming; there were no issues,” he says.
“Playing by the book usually helps, although certain grey legislative spots certainly do not help the incoming candidates,” Misic weighs in. “On a general note, anyway, it could be said that the Bar Association’s approach has been a conservative one, hence expecting expansive facilitation would be a rather long shot. Certain jurisprudence-driven legislative changes may be expected mid-term, but it is somewhat premature to go into any details on that.”
Historical Ties, Modern Trade Bonds
Assessing the regional synergies, it seems that centuries-old connections still drive today’s cross-border deals.
As Peterka explains, for them, “Slovenia continues the firm’s coverage of the EU countries of the former Austria-Hungary, which is significant historically and professionally.” Misic adds that “Vienna is the go-to business hub for the region, offering a major platform for the Austrian undertakings expanding southbound, with Slovenia the obvious first stop on the way,” stressing that Austria ranks as one of the most important trade partners for Slovenia. “With historic and cultural connections also very important, similar could be said for Prague, albeit on a slightly smaller scale.”
And, Peterka agrees. “The strong economic relations between these countries are deeply rooted in their shared legacy as part of the Austro-Hungarian Empire, which fostered close ties and made those countries close to each other,” he explains. “Today, this connection is reinforced by belonging to the Three Seas initiative, further enhancing their economic cooperation, development, and regional integration across the CEE region.”
Ultimately, according to Peterka, the step made sense since the firm “has had Slovenian clients for years, and more and more of our regional clients are doing business there.”
Finally, new entrants are poised to spur innovation and, ultimately, sharpen client service. “We welcome these developments,” Misic says. “The entry of reputable regional firms raises the overall quality and competitiveness of the Slovenian legal market. This is good for clients and ultimately good for firms like ODI, which are committed to constant development.”
In the end, Misic shares that he sees this “not as a threat, but as motivation, to keep innovating, strengthening client service, and remaining a top-tier choice in Slovenia and across the Adriatic region. The legal landscape is evolving, and it is exciting to be part of a more connected and dynamic future.”
This article was originally published in Issue 12.6 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
