Lexpert Roundup on the Business of Law
Lexpert identifies and reports on emerging business issues and practice areas in the business of law. Whether online, in our magazine or in the DealsWire e-newsletter, we chronicle deals and lawsuits of interest, and cover issues of broad concern to the legal profession and those who purchase legal services. We hope you enjoy this sampling of our latest content.
Cannabis legalization provides expanding market for investors
An evolving regulatory regime is presenting some risk for potential investors in the hot cannabis market. Lawyers say the details of the regulatory environment are unclear, so investors should proceed with caution. But there seems to be good opportunity for investors at the table. Licensed producers (LPs) are projecting sales approaching $400-million in 2017, and an estimated $1.5-billion by 2024. And the international market could attain $100-billion in retail sales between 2022 and 2027 – not including recreational sales.
Punching Above Weight
The legal market is getting rough. Blame it on any number of factors: the erosion of senior relationships in favour of the request for proposal (RFP); general counsel being pressured by finance and procurement to cut legal spend; the commoditization of several areas of law or new legal technology. The result is cutthroat competition, particularly for boutiques. As these nine profiles demonstrate, however, boutiques are finding their own routes to continued success, with models that work for them.
Tax Competition Returns
The tax games have already begun. The United Kingdom's corporate tax rate, which was 28 per cent in 2010, now stands at 19 per cent and is set to drop to 17 per cent by 2020. In the United States, meanwhile, President Donald Trump was elected on promises that included lowering the equivalent tax rate there to about 20 per cent (a figure that includes state taxes) from its current 39 per cent. This heightened international tax competition will undoubtedly have enormous implications for this country.
Graphic: Upping Their Tax Game
An analysis by the University of Calgary's School of Public Policy shows how proposed tax cuts would bring the effective rate for new investment in the United States in line with lower Canadian rates.
This week's announced deal spotlight in Lexpert DealsWire features the key players and figures in Parkland Fuel's pickup of the Canadian oil refining and marketing arm of Chevron Corp., which comprises assets in British Columbia.
In our closed deals section, we look at the legal teams on the sale of Veresen's thermal power business to Capital Power, as well as Alithya acquiring Systemware Innovation Corp.
We also look at the players behind two significant energy deals: Enbridge and Spectra Energy in their $37-billion merger and ExxonMobil acquiring InterOil.
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