Sarbjit Basra will take the reins at law firm Davies Ward Phillips & Vineberg LLP in June as the corporate and legal world confronts the fallout from the coronavirus pandemic.
The firm announced Wednesday that Mr. Basra, 52, will succeed long-time managing partner Shawn McReynolds on June 1. The pair said in an interview with The Globe and Mail that they will work together during the transition period of the next two months to navigate the unprecedented business disruption.
“The current environment is very challenging,” Mr. Basra said. “We’ll monitor the business very closely and make sure we’re taking care of clients and, equally important, make sure that our people, our staff, are safe and sound.”
Mr. McReynolds said demand for the firm’s services has remained strong so far, though it has shifted somewhat – some transactions are not going forward but other opportunities have arisen because of the crisis.
“For some businesses this is catastrophic, for some it’s an opportunity. And the legal business has always been fairly resilient. … People continue to have disputes, they continue to need to run their businesses and sometimes the businesses need to be restructured," he said. "I don’t know what April or May or June will bring in terms of business volumes, but so far business has been fairly resilient.”
Mr. Basra joined Davies in 1992, became a partner four years later and is a senior member of the firm’s private equity group. Davies is consistently involved in corporate Canada’s largest and most complex transactions. As a part of his practice, Mr. Basra advises the federal government on venture and growth capital initiatives designed to attract investment from the private sector. He plans to continue his practice when he officially steps into the role.
Davies, which has offices in Toronto, Montreal and New York, is a relatively small firm, with just more than 250 lawyers and about 600 staff in total. Two of Canada’s biggest law firms, Borden Ladner Gervais LLP and Norton Rose Fulbright LLP, have announced pay cuts in response to the crisis, but Davies said on Sunday it has not cut salaries for associate lawyers.
Mr. Basra and Mr. McReynolds both said they want to maintain a smaller-firm culture, with a focus on attracting talented lawyers. “We stick to what we do best. We don’t dabble in different practice areas, and that makes us very circumspect about trying to grow just for the sake of growing,” Mr. McReynolds said, adding, “But we’re highly motivated to be one of the most profitable firms in the country.”
Mr. McReynolds became managing partner in 2010. During his tenure, he saw a trend come and go of international law firms consolidating Canadian ones. He said Davies resisted the move but adapted by making stronger connections with firms in other markets, crucial for a business that is built largely on referrals.
Mr. McReynolds plans to remain with the firm after stepping down as managing partner.
In recent years, Davies has acted as Canadian counsel to Barrick Gold Corp. in its merger with South African gold miner Randgold Resources, advised Burger King on its acquisition of Tim Hortons and represented Alimentation Couche-Tard Inc. in its deal to buy North American convenience store chain CST Brands.
Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.