Under the visionary leadership of its Founder, Chairman, and Senior Partner, Vladimir Penkov, Penkov, Markov & Partners has established itself as a premier law firm in Bulgaria. With a legacy spanning over three decades, the firm has built a reputation for delivering exceptional legal expertise and tailored solutions to clients across various industries. From corporate and commercial law to dispute resolution and intellectual property, Penkov, Markov & Partners offers a comprehensive range of legal services, guided by Vladimir Penkov’s unwavering commitment to excellence and client satisfaction.

Join us for this exclusive discussion with Vladimir Penkov, Founder, Chairman, and Senior Partner of Penkov, Markov & Partners, as he shares his unique perspective on leadership, law, and the Bulgarian business landscape.

1. What inspired you to establish Penkov, Markov & Partners, and what were the primary goals during its inception?

Having amassed enormous experience in international transactions, including companies’ incorporation, major industrial projects, license agreements and industrial cooperation agreements, it was only logical that I should aspire to start a law firm to cater for the needs of numerous new entrepreneurs and young investors in Bulgaria after the democratic changes in the country in 1990 and the establishment of free market relations.

The primary goal during the inception was to build a young and small team and the backbone of the initial organizational structure.

Creating a positive work environment of camaraderie, cooperation and mutual assistance among the colleagues was just as important.

Knowledge, combined with such a team that had yet to build up substantial experience, plus appropriate organization, were the main points of departure for future success.

It made perfect sense that the next step would be a gradual procurement of state-of-the-art equipment and software.

2. What distinguishes your company from competitors, and are there any standout projects or initiatives that you are particularly proud of?

I think that what distinguishes our firm on the Bulgarian market is that each member of the team has embraced the corporate culture and standards of operation that have evolved over the decades and that ensure full dedication and highly expert legal advice in the different areas of law through specialized working groups.

This is our major comparative advantage on the market in Bulgaria.

This corporate culture and standards have moreover come as a result of the experience and self-confidence generated by a number of standout projects in which we have been involved, such as the entry of The Coca Cola Company in Bulgaria in 1992 and the structural consolidation through acquisition of the whole ownership by the company and the establishment of the Coca Cola Hellenic Bottling Company in 2003.

The company now employs 3,000 people and logs an annual turnover of EUR 280 million.
We are proud of the successful privatization by Heineken of Bulgaria’s largest brewery, Zagorka, in 1994, where after the purchase and an initial investment of over 60 million EUR, a significant further investment was made.

We attach great importance to our participation in consortia with Roland Berger and REC A1 Co. for the successful privatization of ten enterprises in electrical engineering, mechanical engineering and the chemical industry.

Other projects stand out because of the comprehensive legal services required: the privatization of two cement plants through Titan Greece; of the Balkans’ largest glassworks Druzhba and Stind (involving heavy investment), now owned by BA Glass; of the gypsum fiber boards plant by KNAUF; of the Bulstrad Insurance Company (2000), which is now part of the Vienna Insurance Group, and the Bulgarian Telecommunications Company (2004), subsequently sold to AIG for EUR 1.7 billion.

Also noteworthy is the participation of PM&P in a consortium with Price Waterhouse for the purchase of Navigation Maritime Bulgare in 2008, the CEZ Electricity Distribution Company and commercial corporations worth EUR 500 million in aggregate in 2021, and a work in progress: a transaction for a multi-mode renewable energy project of Eurowind and Renalfa (240 MW solar, 200 MW wind and 250 MW battery).

Certainly, we can mention a number of other successful projects that the entire PM&P team is proud of.

This fills us not only with pride, but also with confidence.

3. Can you tell us about any pro bono or community-focused projects that Penkov, Markov & Partners has worked on?

Community commitment is part of the PM&P corporate culture.

This comes in the form of financial support to For Our Children Foundation that has helped find a home for all children left in public care, the Bulgarian Christmas Initiative under the auspices of the President of the Republic of Bulgaria that contributes to hospitals and the needy, as well as bidding in Lions Clubs charity auctions and lawyer award ceremonies to raise funds for the purchase of neonatal incubators and other medical equipment for hospitals.

Besides this, we provide pro bono legal services to natural persons and draft bills intended to improve the investment climate.

I am also currently а member of the Board of the Tulip Foundation, which assists NGOs for municipal development.

4. How will your business strategy be affected by anticipated changes in the industry, technology, or regulations?

Needless to say, our business strategy is constantly adjusting to the new requirements of regulations and to novel technologies and software. Keeping abreast of these developments is a factor of work efficiency.
We are certainly branching out in some entirely new areas of law, such as AML, GDPR, whistleblowing and ESG.

Our strategy is based on good organization, creative teams and mutual help, steady improvement and high motivation, which in practice facilitate quick adaptation.

5. What motivated the expansion into fields such as intellectual property, tax law, and corporate law?

These are undoubtedly the fields that most closely concern business interests and good investment protection.

We spare no efforts to defend clients’ individual interests but also to approach institutions with reasoned proposals for relevant amendments to the legal framework, prompted by deficiencies identified in its application.

We were very actively involved in the tax reform launched in 2005, when a 10% flat tax was introduced for corporate profits and personal income. This resulted in a major rollback of the shadow economy and an increase of tax revenues.

I headed various working groups for an improvement of companies’ registration requirements and the introduction of an electronic company register (2008), which made registration transparent, predictable and fast, responding to investors’ insistence.

This boosted investor confidence and made Bulgaria a more attractive investment destination.

6. How does your firm’s expertise in EU law benefit clients?

Our law firm’s expertise in EU law has a significant impact on our clients.

On the one hand, some of our clients are multinational companies and, therefore, operate across a number of European jurisdictions. In this case, our advice always reckons with the requirements and business logic of Bulgarian law, as well as with the requirements of EU law. Clients are thus able to compare and get a better understanding of the Bulgarian specificities.

On the other hand, our Bulgarian clients who want to make market inroads in the EU need precisely this kind of legal expertise. They trust us, so as to achieve a comparable level of competition on the foreign market while keeping their comparative advantages.

Last but not least, our expertise in EU law helps us “foresee” the future development of Bulgarian legislation, which is highly appreciated by both our foreign clients and Bulgarian entrepreneurs.

7. What is the effect on client services of your company’s experience with international transactions?

Our experience of many dozen rounds of negotiations with international companies, both on setting up commercial companies and in connection with the joint implementation of various projects in many different industries augments our practice and, moreover, helps build a better client service model and boost the impact of the service.

Sharing in international transactions enhances knowledge and familiarizes us with the legal framework and practices in other countries.

This gives me and PM&P a significant advantage, as it enables a more comprehensive and deeper insight into clients’ needs – a precondition for legal protection in thoroughly creative and innovative ways.

8. How do you envision Penkov, Markov & Partners evolving in the next 5-10 years?

The expected ever-increasing penetration of artificial intelligence into life, into the practice of lawyers and law firms, undoubtedly requires utilizing AI in the most rational manner possible rather than banning it. This implies an expansion of the database to include, among other things, knowledge about the framework governing various companies, and exploring a range of options and useful alternatives. AI speeds up lawyers’ processing, thinking process and judgment but cannot do it for them.

I envision a need of laying down specialized general rules and standards for law firms with a view to universalizing the principles and achieving the requisite predictability. The individual lawyer, however, should be free to exercise professional judgment without restrictions, based on their knowledge and experience.

9. As the Founder, Chairman, and Senior Partner, Vladimir Penkov, your inspiring leadership has helped Penkov, Markov & Partners achieve great success. Would you mind sharing the tenets of your leadership philosophy?

Over the years, I have come to the firm conclusion that, in addition to the knowledge, experience, extensive database and technologies, a law firm that employs a large staff with across-the-spectrum specialties and capabilities needs many other accompanying prerequisites to be successful.

Conditions need to be created for good communication, mutual assistance, initiative and vision.

This means paying attention to all circumstances and requirements noted by co-workers, regardless of their specialization. Often, this can only be achieved by means of anonymous surveys with well-formulated questions, the casual atmosphere of organized team buildings, informal office meetings, and respectful relationships among co-workers.

The work environment certainly plays an important role, too, and it is not limited to the comfort and facilities, but also to reducing the use of paper and switching to energy-saving lighting and electrical appliances. Perks, cultural events and ambience matter, too.

This achieves an unprecedented level of motivation, if not in all, then in most co-workers, which is the surest key to future success.

All this is part of the tenets of my leadership philosophy.

Vladimir Penkov: Founder, Chairman, & Senior Partner
Company Name: Penkov, Markov & Partners
Email: lawyers@penkov-markov.eu
Website: www.penkov-markov.eu