We Are Bringing Silicon Valley to Germany

The German office of Morrison Foerster has established itself as a transactional firm and concentrates on cross-border acquisitions. Managing partner Dirk Besse expects the M&A business to grow until 2025 and would like to see better conditions for startups.

Just over 10 years ago, the U.S. law firm Morrison Foerster opened an office in Berlin, Germany, with a staff of 24 lawyers. In the course of time, the office has grown considerably. Today, 114 employees work in the office on Potsdamer Platz, 51 of whom are lawyers and 16 are partners.

“Morrison Foerster sees itself as a transactional firm and has the right size to implement the U.S. firm’s plans in Germany,” said German managing partner Dirk Besse in an interview with the Börsen‑Zeitung. The firm is concentrating above all on international business. “We have enough capacity to handle several transactions at the same time— with everything that goes with it,” said Besse, who also heads MoFo’s European M&A practice.

Bridge Builder

“We see ourselves as bridge builders who can bring Silicon Valley to Germany,” the lawyer emphasized. One of the current deals the firm is working on is advising the U.S. electric car manufacturer Rivian on its joint venture with Volkswagen. “This is a very remarkable transaction—not only because of the volume. It shows that the software developed in Silicon Valley is also of great relevance to the classic German economy and can raise it to a new level,” he said.

“The team is committed to working at the highest level of excellence in the German market. Otherwise, you will not get the best minds,” continued Besse. He attributes the office’s success to the manageable size of its staff, the lawyers and staff work well together, and the support of a global network that affords them the ability to work on a client outside of Germany, for example, in California.

A Foothold in Japan

As a globally present firm, Morrison Foerster also has a focus in Japan. The firm’s entry into Nippon was 40 years ago and was motivated by the Japanese IT company Fujitsu. At the time, the company was involved in a patent dispute in the United States that threatened its existence. Fujitsu had instructed Morrison Foerster to represent the company in this case. A condition of the mandate was that MoFo open an office in Tokyo for this very large project. “This turned out to be a great success story. The who’s who of the Japanese electronics and software industries are among our clients. We like to advise these companies on cross-border transactions in Europe, China, and the United States,” said Besse.

One of the firm’s mandates with German involvement from Japan was the acquisition of the Lübeck‑based 3D printer manufacturer SLM Solutions by camera manufacturer Nikon in 2022.

Strong Litigation Practice

In addition to its focus on transactions, Morrison Foerster has built a very strong litigation practice worldwide, according to Besse. For him, the two go hand in hand, because disputes tend to increase in difficult M&A phases and companies also need support with critical compliance issues. For example, a compliance team from MoFo advised the supervisory board of Mercedes-Benz in connection with the diesel emission problems.  

In terms of strategic orientation, Morrison Foerster is also one of the strongest firms worldwide in the area of IP and patents and their enforcement and defense. “This could be a useful addition in Germany if opportunities arise,” said Besse.

Morrison Foerster on Record High Profit Course

In terms of revenue development, the firm is “on record course” with a recent 1.34 billion Dollars and more than 1,000 lawyers worldwide. “We are also feeling this momentum in Germany,” Besse said, without disclosing any figures. In Europe, MoFo also has offices in Brussels and London.

 “Liberal world trade has brought so many benefits globally, it will not be stopped,” - Dirk Besse, managing partner of the global law firm Morrison Foerster in Germany

The transaction expert expects a significant increase in M&A business in 2025. “Many companies will seize opportunities,” Besse said. Some companies will be intent on working to get behind the tariff barriers announced by U.S. President-elect Donald Trump. However, the lawyer does not expect a wave in this context. “There will also be companies that feel compelled to reduce their presence in the United States. Liberal world trade has brought so many global benefits that it will not be stopped. Of course, there will be resistance from individual governments, but these are temporary phases. In general, global trade has steadily increased in recent decades. As a law firm, we want to play our part in this and we can identify with it,” said Besse, summarizing the scenario.

Focus on Investment Controls

Many countries have tightened investment controls, which makes cross-border transactions more difficult and complex. “We now have four lawyers in the firm who only deal with sanctions and investment control. They mainly advise global players on how they can structure cross-border transactions,” Besse said. The global head of the National Security practice, John Smith, has relocated to the German office in Berlin because he considers Europe to be “a very interesting market in terms of transactions, which will continue to develop.” The teams work together globally on this topic, as cross‑border transactions usually have to go through numerous competition authorities. “It is a noticeable trend that investments from abroad are no longer fully welcome in many countries and are closely monitored. The United States is already taking the next step and is also controlling outbound transactions,” explained Besse.

“Germany will regain its attractiveness in the long term.” - Dirk Besse, managing partner of the global law firm Morrison Foerster

Due to the difficult economic situation in Germany this year, investors have been holding off on transactions or negotiating for longer. However, Besse remains confident. “I still consider Germany to be an attractive location. This is due to its location within the coveted European Union. Germany will regain its attractiveness in the long term,” he said.

Biotope for Startups

The lawyer warns of an exodus of innovative companies. “The startup and technology scene has developed a strong soft spot for the United States,” said Besse. In the biotech sector, for example, startups are increasingly being founded in the American legal form in order to open themselves up to American investors. “Germany and Europe are missing out on opportunities here, which shouldn’t be the case,” he said.

“You have to create a biotope for young companies in which they can develop. You need thousands of growth companies, then the lighthouses will emerge on their own,” Besse said. He added, “Then not everything goes straight to the United States and is bought by the Magnificent 7. They keep a very close eye on what exciting software developments are happening in the world and buy the employees through so‑called acqui-hire.”

Read the German article.