Annual review 2023
Management’s Report
A groundbreaking year for Kromann Reumert
The year featured the successful expansion of our advisory services, successful interaction with clients and internal projects for the development of our firm. Our focus is constantly on creating value for our clients, and we are optimistic about the future of the market and our company.
Internal development of our company
We have prioritised and invested in abolishing standard time, developing a new bonus model, developing an ambitious ESG strategy and revitalising our values and vision into a contemporary core narrative.
Abolition of standard time
Among the year's most notable internal milestones was the abolition of standard time and the development of a new bonus model, both of which came into effect on 1 January 2024. By eliminating standard time, we have paved the way for a more holistic assessment of the contribution of our lawyers to the company's objectives. In addition to invoiced time, it is also important for us to look at employee contributions to management, acquisition, innovation and business development. The change marks a transition from traditional legal practice to a more dynamic and versatile approach, providing additional flexibility while continuing to ensure that we can always offer advice of the highest quality. We have high expectations of the development these initiatives will support.
ESG strategy
For many years, we have worked with a number of ESG initiatives aimed at our impact on society and the environment and, not least, our impact on our employees. We took a big step further in 2023 by developing an ambitious and comprehensive ESG strategy, while also committing to the Science Based Targets initiative (SBTi). Our new ESG strategy puts us at the forefront of this work in the industry.
Read more about our ESG strategy further down the page.
We publish our annual ESG report every year. As we want to live up to sustainability goals approved by SBTi, we chose to postpone the release of our ESG report this year until June 2024 to ensure the most accurate data.
Core narrative
We have revitalised our core narrative, revisiting the values we stand for and that guide us. Even in a constantly changing world, we have a core of stability as a solid point of reference.
Strengthening client relationships and business development
One of our main focus areas in 2023 was on further strengthening our client relationships and developing the business. One element of this is that we engage our lawyers even earlier in business development and acquisition. This is not part of their educational curriculum, but necessary skills to master as the business lawyer of the future.
Artificial intelligence in focus
With the power and speed of a tsunami, GenAI has rolled across the world, becoming a factor that features in strategy across all sectors. That includes the legal profession and of course with us.
We set up a steering committee in 2023 responsible for continuously identifying how best to utilise the technology, focusing on employee development, choice of GenAI systems, and their implications for our business model. Among other things, we have started using the GenAI tool Copilot from Microsoft. We are training our employees in prompting to ensure optimal use. The goal is to harvest even more quality and efficiency in our internal processes and legal advice – all based on our AI strategy, which puts our employees and the development of their skills at the forefront.
Read more in "We’re taking the plunge into generative AI" further down the page.
From geopolitics to digital transformation
The constant development and change in legislation is widely seen across all our advisory areas. But especially the development within digitisation is worth mentioning. AI presents the world with new complex legal challenges and questions, such as data protection, algorithm auditing and liability. In the same vein, the growing use of digital solutions has increased the risk of cyberattacks for our clients, who increasingly demand advice on the legal aspects of cybersecurity and data protection.
Experience from Danish and international organisations has provided a firm base for us in meeting the increased demand for strengthening clients' cyber security from management to operational levels. Over the past year, our solutions have included strategy development, risk management, legal regulation, contract assessment, contingency planning and employee training, all based on best practice and current trends. We are deeply involved in the transformation of the digital decade, working to ensure client resilience to cyber threats, helping them navigate the complexity of NIS2 and DORA regulations.
The geopolitical turmoil has been the reason why we added "Defence and Security" to our range of advisory services in 2023. The world situation has created opportunities and challenges for the defence and security sector. Our specialist team consists of more than 15 specialists from their respective fields, several of whom have a military background and thus solid knowledge of the unique needs and challenges that characterise the sector. That allows us to offer specific tailored advice to our clients.
Robust advice in troubled times
2023 was marked by geopolitical turmoil and macroeconomic factors, such as rising interest rates and inflation. It has also left its mark on our advice. The transaction market, which is typically our largest area, has been less active, while the demand for advice on fund formation, employment law, cyber security and assistance with investigations has been increasing.
We saw increasing activity on the transaction market in the latter part of 2023.
Read more about how macroeconomic, geopolitical and legal factors affect the M&A market in the section "The market and an insight into cases 2023" further down the page.
Net profit for the year
Our corporate structure means that we do not publish financial figures. But we closed 2023 with revenue on a par with 2022. That is satisfactory given the status of the market. We look forward to 2024 with excitement – what new challenges and new opportunities will the year bring? One thing is certain, Kromann Reumert's clear ambition is to remain on the front line and at the top of the industry. Therefore, we will maintain our focus on innovation, flexibility and adaptation to ensure that we are well-equipped to meet the changing world and the needs of our clients.
Core narrative and values
With our new vision Exceed Expectations and our values Ambitious mindset, Spirited teamwork, Attentiveness, and Courage, we set a binding direction for our company's future journey.
We have gathered our vision, purpose, values and two strong pledges to our clients and employees. The best of what we come from, what we know is still us, and what will take us further in time and evolution.
Vision
Our vision, Exceed Expectations, is what continually motivates us to strive and reach further; it is, as the term implies, visionary.
Purpose
Our purpose describes our mission and the basis of our existence; it determines how we make decisions in our daily work and make meaningful contributions to businesses, employees, and society. We have chosen to describe the essence of Kromann Reumert's foundation and purpose in three phrases that together describe the purpose of our firm:
Value-adding advice | Durable solutions | Inspirational teamwork
Our pledge to clients
We are here to serve our clients. We are proactive, ambitious in the pursuit of our clients' interests and proud to offer advice that makes a genuine difference. We can do that because we invest in understanding our clients’ businesses and needs. Our advice is customer-oriented and innovative – always building on attentiveness and credibility.
Our pledge to employees
Our vision, values and purpose are not only rooted in our historical foundation but also represent a contemporary product of input from clients, employees and partners. This is our DNA – what we must be infused with and guided by when we engage with our clients and as we collectively strive to further develop Kromann Reumert and ourselves.
Our values
We are shaped by a fundamental understanding that our advisory services are not just about law, but also about providing value-adding solutions that suit our clients' business needs and situations.
Our values are the principles that collectively and individually guide our actions and decisions.
Ambitious mindset, Spirited teamwork, Attentiveness and Courage express our commitment to strive for the best – for our clients and our employees.
An ambitious strategy for our ESG work
The strategy builds on our numerous ESG initiatives and focuses on four priorities moving forward: well-being, DE&I, climate, and sustainable advisory services.
Our ESG strategy spans five years and is generally based on the following vision:
"We aim to set high standards for well-being and diversity and to minimise our climate footprint."
Based on a materiality analysis, our vision has been translated into four strategic priority areas where we as an organisation believe we can make a difference both internally in our organisation and externally in our impact on society:
Well-being
We are committed to ensuring a high level of well-being among our employees. To achieve this, we will, for example, work actively with appropriate working hours & structure, flexibility and mental health, as well as a work-life balance that attracts and retains the most talented employees. As part of this focus, we have already implemented various maternity/paternity leave measures and abolished the billable hours requirement.
Diversity, Equity & Inclusion (DE&I)
We aim to ensure an inclusive workplace that encourages and actively works with a holistic focus on diversity across the organisation. To achieve this, we conduct bias training and bring focus on different cultural and religious events.
Climate
Our ambition is to reduce our CO2 emissions even further while ensuring transparency. To achieve this, we will, for example, annually update our carbon footprint accounts and report on scope 1, 2 and 3 emissions. In this context, we have decided to join the Science Based Targets initiative (SBTi).
SBTi means that we as an organisation must set targets to fulfil the Paris Agreement, which aims to limit global warming to a maximum of 1.5 degrees. We expect SBTi to approve our targets during 2024.
Sustainable advisory services
We are committed to offering our clients top-quality sustainability advice, providing ESG inspiration, and setting the standard for integrity in the legal profession. On our ESG advisory services site, we regularly share content highlighting the new legislation related to the Reporting Directive and the Due Diligence Directive, podcasts, videos, etc., all of which aim to equip you with the knowledge needed to navigate the intricacies of the complex legal landscape.
2024 and five years ahead
Our new ESG strategy must be integrated into every part of our organisation. We have already taken important steps, such as challenging the billable hour culture and conducting a CO2 benchmark analysis. In the development of our ESG strategy, we have also identified additional relevant activities. During the five-year term of the strategy, we will, in close collaboration with our employees, continue to develop and launch new initiatives in our day-to-day operations and in our advisory services. To support this, we plan to set up various project groups that will work together to identify and develop the initiatives that best fit our business.
In the summer of 2024, we will publish our next ESG report, which will provide more insight into our new strategy and the initiatives and results so far.
ESG in 2024: Focus on implementing the new legislation in your company
In 2023, the trend shifted significantly from soft law to hard law, which is now pushing companies to actively engage in sustainability. While some have been focusing on sustainability for some time, others are facing their first steps in this area. 2024 will bring significant changes in corporate workflows and strategic initiatives.
The Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) are just two of the regulations that Danish and international companies must deal with in 2024, when the new legislation will be implemented.
Developments in the ESG area in 2023 have featured several trends:
Corporate Sustainability Reporting Directive (CSRD)
The new rules on sustainability reporting will apply from 1 January 2024, with reporting from 2025. The rules result in tougher requirements for the information and data that companies must collect and report, their processes for data collection and quality assurance. As a company covered by the rules, you must be aware that sustainability reporting under the new rules will have to be provided with a limited assurance statement from an auditor. The purpose of the rules is to increase the transparency and comparability of sustainability reporting and thus increase sustainability in the long term. Read more about CSRD.
Corporate Sustainability Due Diligence Directive (CSDDD)
When it comes into effect, the upcoming legislation on sustainability due diligence will impose requirements on the due diligence processes of companies, the handling of negative impacts on human rights and the environment in their own operations and value chain. The rules are expected to be adopted by the EU in 2024, after which they will have to be implemented into Danish law.
We expect 2023 ESG trends to continue in 2024. However, with even more focus on implementing CSRD and CSDDD when it will probably be adopted.
Partner Line Berg Madsen shares two important steps to effectively implement CSRD and CSDDD that you can take now.
- A gap analysis taking into account CSRD and CSDDD and other regulatory issues that interact with the directives or relate to other ESG topics.
- A double materiality analysis, which is crucial to understanding the impact the company has on the outside world, people and governance as well as what financial impacts there may be from different ESG issues. It is basically all about understanding how the company and its value chains affect and are affected by ESG.
Get our 5-step guide to strategic ESG work.
We’re keeping an eye on developments and in 2024 will focus on the key points within ESG for upcoming events and in publications that keep you and your company updated. Stay tuned here.
Taking the plunge into generative AI
At Kromann Reumert, we have the courage to venture into new territory – even when we do not know the exact path or where it leads. The same is true for AI. With a focus on generative AI, we have already taken steps towards a more efficient and innovative future, where a strong culture that values innovation and learning from mistakes creates an ideal environment for exploring new technological opportunities.
We constantly encounter decisions related to business digitalisation, both in the short and long term, focusing on the challenges whose solutions provide the best value. While AI already plays a significant role in our existing systems, generative AI is new to us, at least as a well-functioning tool, and offers a completely different way of working,.
Focus on employees
"The future is exciting but complex and requires a well-considered approach, balancing the benefits against the human and financial aspects. It is a process we have started, and everyone in the firm will be involved; a process requiring strategic and responsible planning," says Managing Partner Christina Bruun Geertsen.
Profitable for both sides of the table
Generative AI can streamline workflows, reduce errors and free up time for our attorneys to focus on more complex tasks and strategic advice – for the benefit of us and our clients.
One example is the AI tool Microsoft Copilot, which we are integrating into the Office suite. It can help us with some of the more tedious tasks such as note-taking, summarising meetings and documents, and catching up on long email strings.
Another example is the development and testing of our own KRGPT, which will initially be trained with paradigms and examples from our legal knowledge databases. Tools that together ensure that our clients receive prompt and concrete answers to their challenges.
As we delve deeper into AI's potential, we maintain a methodical and well-considered approach. Each step is well-considered and balanced against the current pace of innovation, with due consideration for ethics, compliance, learning by doing and, not least, employee well-being.
We recognise that we still have a long way to go. The support of Danish language in generative AI is inadequate, and there is a need for better integration with existing systems. Nevertheless, we remain optimistic and anticipate exploring the potential of AI and contributing to a more efficient and innovative legal profession.
Who we are
Employees
Skill and commitment are essential in the increasingly complex landscape of legal and specialist advisory services. We deeply appreciate the importance of both our legal and administrative staff in maintaining a culture centered around credibility, availability and close client relationships.
Welcome to seven new partners
New office in Aarhus reaches for the sky
The construction of "Akson", which will be home to our new office in Aarhus, is progressing according to plan. We’ll be moving into our new premises in 2025. Stretching 112 metres into the sky, this impressive building will house Kromann Reumert on the upper floors (21st - 26th floors). Akson thus becomes Denmark's second tallest building. The building will qualify for a Gold DGNB certificate. Watch our partners Jacob Møller and Jesper Aabenhus Rasmussen give you a guided tour of the building.
Our international perspective
Global expertise at hand
“A significant part of our business activities involve international cooperation. To provide the best service to our clients and business partners abroad, we are (the only Danish) member of Lex Mundi - a leading global alliance of independent law firms. The membership gives us unique opportunities to offer our clients access to legal expertise around the world,” says Partner Morten Kofmann.
When Danish companies are involved in business transfers abroad or need to enter into other formal collaboration, they often spend a lot of resources on finding local lawyers and explaining the company and its business to them.
Global alliances
Lex Mundi is the oldest and largest network of its kind, with over 150 member firms in 125 countries and more than 23,000 legal professionals in total. The network connects the world's leading legal experts and is the ultimate resource for clients - whether they need advice on complex disputes, business structuring, or global transactions. The network provides unrivalled legal insight covering all aspects of international law.
London: An international hub for relationships and cases
Our London office plays a vital role for our clients, especially with cross-border transactions and cases. With more than 30 years of presence, we have developed into a hub for international legal work, supported by a dedicated team of lawyers based there.
As the only Danish law firm with an office in the UK capital since 1991, we offer unique benefits for clients and employees. Our location in London allows us to cultivate close relationships with international and domestic clients, while allowing our lawyers to represent the firm's specialties on a global stage.
In 2023, Managing Partner Christina Bruun Geertsen, together with a number of partner colleagues, held a reception for clients, business partners and colleagues from the London office. The impressive St. Paul's Cathedral is located near our office and was therefore ideal as a setting for the reception.
The market and an insight into 2023’s cases
M&A market facing headwinds and tailwinds
The state of the market can largely be attributed to the number of transactions taking place. After an uncertain 2023 with declining activity, we see the market opening up again and the level of activity in corporate deals increasing. This applies across segments and investment size.
More stable macroeconomic trends and pent-up demand, especially in the private equity segment, contribute to the positive trend, while geopolitical conditions and uncertainties pull in the opposite direction. The legal situation can also have an impact on complexity and transaction security in particular.
The macroeconomic situation
The M&A market in 2023 was tough. The market for corporate transactions, like many other markets, was negatively affected by uncertain socio-economic conditions. But towards the end of 2023 and during the first months of 2024, we have seen inflation under control and stable interest rates. Such macroeconomic trends mean that we expect increased activity in the transaction market in 2024. There are also a number of industries where acquisitions constitute a very significant part of growth opportunities.
Private equity funds continue to have strong capacity and the appetite to conduct transactions after a calmer 2023. However, it is of course still important to ensure acceptable exits for the companies in the portfolios.
The geopolitical situation
Despite an expectation of generally increased M&A activity, geopolitical conditions can quickly move things in a different direction. In 2024, a number of global political tensions will continue, and it will be the biggest global election year in history, with no less than 49% of the world's population going to the polls.
We saw how the Russian invasion of Ukraine in 2022 created uncertain markets and geopolitical tension via sanctions packages, with major consequences for international trade. Are we looking at a further escalation of the conflict in Gaza and between Russia and Ukraine? And what will the 2024 US presidential election bring?
Companies with international value chains risk being affected either in terms of sales or purchasing in 2024, and the uncertainty of the geopolitical landscape and the results of a number of the most important elections may affect the markets and thus also the desire to invest.
Legal issues
Geopolitical developments may also have an impact on how the rules for foreign investment (the FDI rules) are applied in Denmark. The number of sectors subject to FDI rules will probably not be expanded, but uncertain geopolitical conditions may affect whether the Danish Business Authority will approve a transaction. In general, if a draft law is adopted in 2024, competition authorities will be able to require mergers not covered by the turnover thresholds to also be reported if they believe they may raise concerns. This may mean that more transactions will have to be approved in the future and, if the proposal is adopted, will result in considerable (legal) uncertainty for buyers and sellers compared to the previous practice of fixed thresholds.
Highlights from our work
As a full-service law firm covering more than 30 practice areas, we provide specialist advice on all aspects of Danish and European corporate law. Here are a few highlights from some of the exciting work our clients entrusted us with in 2023.
Sweco
In 2023, the architecture and engineering consultancy Sweco Danmark A/S acquired OJ Rådgivende Ingeniører A/S and its subsidiary OJ Brandrådgivning A/S.
Ørsted
In the autumn of 2021, Ørsted launched a tender procedure for a global corporate framework agreement for 'Public Cloud Services' at an estimated value of around DKK 350 million, but with the possibility of doubling the value.
The three global hyperscalers Microsoft, Amazon and Google participated in the tender. In the tender procedure and negotiations, Ørsted focused particularly on how to commercially and legally design the contract and the tender procedure in such a way that the contractors "could see themselves in the supply" while at the same time creating a competition in which the contract terms were not designed for or based on one supplier's standard terms.
Coloplast
In 2023, Coloplast acquired Icelandic Kerecis hf, an innovative and fast-growing company in the biologics wound care segment, at a price of up to around DKK 8.9 billion.
Corti
In 2023, the Danish-founded AI software company Corti raised around DKK 420 million in a Series B round led by Prosus Ventures and Atomico with participation from existing investors Eurazeo, EIFO and Chr. Augustinus Fabrikker.
Corti has developed an AI platform that helps some of the largest healthcare providers and insurance companies in Europe and the US provide a positive patient experience as interactions evolve. The platform automatically handles records management, coding and quality assurance.
Velliv, Pension & Livsforsikring A/S
In 2023, the life insurance and pension provider Velliv acquired cloud infrastructure for its integration platform. In this regard, Velliv commissioned a data protection impact assessment (DPIA) under the GDPR, documenting and analysing the technical and legal data protection framework for the acquisition.
Staff development
Right to lifelong learning
Our employee development and well-being programme, EXPECT, helps employees at different levels to develop their skills based on a holistic approach.
Our overall training programme is carefully structured and adjusted on an ongoing basis. In this way, we ensure your continuous development, both personally and professionally, from you start as a student assistant until you eventually may become a partner.
At each career stage, our employees must be ready to take on new tasks and roles and, not least, live up to their own and others’ expectations.
The complete lawyer
With the development of the complete lawyer, we focus on four key competences to create the best results and achieve the greatest job satisfaction:
- Case management & commercial understanding
- Acquisition & case and client responsibility
- Leadership and team contribution
- Knowledge work
We have a number of development and training tracks that support these competences.
Maria's post-LLM journey
Attorney Maria Hougaard Jensen took her supplementary education one step further - to the other side of the Atlantic. She left Kromann Reumert for a year and went to the US. Her goal was to obtain an LLM (Master of Laws), experience new parts of the world, and develop both professionally and personally.
From litigation attorney to High Court judge and back: new perspectives on our clients' court proceedings
"How does the justice system work on the other side?". It was this question and curiosity that in 2023 caused director and attorney Linnea Klingberg-Jensen to take a leave of absence from her work as a litigation attorney. She wanted to experience court proceedings from the other side – as an acting High Court judge. This has given both her and us invaluable expertise that directly benefit our clients.
Year 22 - insights into working life
How can we showcase our culture, values and a typical workday as an Assistant Associate (assistant attorney) without a need to open our doors to law students on a weekly basis? Our answer is Year 22.
In this video documentary, we follow a group of young people who joined us as Assistant Associates in September 2022. Throughout their three years of training for the law profession, we offer glimpses into their expectations, experiences, personal and professional development, and their social lives in and outside the office.
What clients and peers say about us
Every year, the legal rating agencies Legal 500, Chambers Europe, Chambers Global, and IFLR1000 rank Danish law firms based on, among other things, interviews with clients and competitors. In these ratings, we are consistently ranked among the very best law firms in Denmark.
Responsive and available with professional and high quality legal work. Works proactively by anticipating issues and maintains a commercial and practical approach to issues being handled.
Kromann is in my opinion the leading law firm in the Danish market. Every single partner and attorney provide high-quality legal and commercial advice and are always very pragmatic, pleasant and flexible.
The combination of an excellent understanding of the law with efficiency and operational skills makes Kromann Reumert an indispensable partner for our company's commercial activities.
The importance of directories for lawyers and clients
In a world where credibility and expertise are paramount, law firms face the constant challenge of standing out from the crowd. Legal directories can be a great way for Danish and international companies to give credit to the most competent and respected advisors in a given field.
Directories are independent reviews of law firms and lawyers. They rank firms and individuals based on, inter alia, expertise, experience, significant cases, client testimonials, and market recognition.
Directories can be seen as the Michelin Guide of the legal world, where firms and lawyers are rated against a wide range of criteria: In-depth expertise, landmark cases, client satisfaction, and peer recognition. The ratings provide a detailed picture of the legal elite. Here are some of the most prestigious legal directories:
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Legal 500: With its global perspective and focus on business law, this directory acts as a compass pointing business clients in the direction of world-class legal expertise.
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Chambers: This comprehensive guide covers a broad spectrum of both commercial and civil law areas, offering in-depth insights into the legal forces that shape our society.
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IFLR1000: Specialising in financial and business law, this directory is a source of invaluable knowledge for anyone seeking guidance on complex financial transactions and corporate structures.
For us as a law firm, a top ranking is not only a seal of approval, but also a powerful marketing resource that attracts new clients and talented lawyers. It serves as proof of our ability to handle the most challenging and complex legal matters, strengthening trust among current and potential clients. For businesses, directories serve as a reliable tool when choosing a lawyer and a law firm from among the market's leading players.
We are proud of our continuous top rankings in the most recognised directories. Not least because the rankings reflect our clients' view on the value-creating advice rendered by our many talented lawyers.