In the 2021 edition of IFLR’s M&A Report, Latham & Watkins considers key developments likely to impact M&A in 2021, and how dealmaking is likely to progress in light of these developments. By Nick Cline, Robbie McLaren, Douglas Abernethy, Richard Butterwick, and Catherine Campbell If 2020 was the year that COVID-19 precipitated extraordinary government intervention … Continue Reading
Despite certain regulatory and challenges, PE buyers will likely see more investment opportunities in the gaming industry. By Neil Campbell, Greg Roussel, Mike Turner, Adam Czernikiewicz, David Walker, Tom Evans, and Catherine Campbell The global gaming market reached a valuation of US$135.8 billion in 2020, accounting for a staggering 53.3% of the digital media industry. … Continue Reading
Dual class share structures could help lure Europe’s best founder-driven businesses to the London market, but challenges remain. By Sarah Axtell, Tad Freese, Chris Horton, Rick Kline, Anna Ngo, Koushik Prasad, David Walker, Tom Evans, and Catherine Campbell Listing of dual class share structures, which give certain owners (usually founders, employees, and pre-IPO investors) enhanced … Continue Reading
In a changing social landscape, PE firms should conduct corporate culture due diligence while also ensuring the implementation of robust complaints procedures. By David Berman, Sarah Gadd, Joe Farrell, Nell Perks, David Walker, Tom Evans, and Catherine Campbell As global businesses react to the pandemic and social movements, PE firms should remain watchful for whistleblowing … Continue Reading
Innovative asset-based lending is on the rise as a means of attracting new lenders while maintaining the strategic support of existing creditors. By Francesco Lione, David Walker, Tom Evans, and Catherine Campbell Raising fresh capital for portfolio companies in times of financial stress is always a delicate balancing act between attracting new lenders and maintaining … Continue Reading
As private equity targets emerging companies, PE investors are expanding VC deal terms and dynamics. By Mike Turner, Shing Lo, Tom Evans, Robbie McLaren, Farah O’Brien, David Walker, Jon Fox, Katie Peek, and Catherine Campbell Emerging companies have historically been backed by venture capital funds, but as Europe’s startup scene matures, involvement by more traditional private … Continue Reading
The CMA’s efforts to make dynamic, forward-looking assessments of parties’ overlaps will only increase post-Brexit. By John Colahan, Tom Evans, David Little, Jonathan Parker, David Walker, Greg Bonné, Anuj Ghai, and Catherine Campbell Dealmakers must be alert to the increasingly interventionist approach of the UK’s Competition and Markets Authority (CMA), including on transactions with a limited nexus … Continue Reading
The recent rise to prominence of SPACs provides private equity portfolio companies an alternative method for stock exchange listing and access to the capital markets. By Neil Campbell, Tom Evans, Paul Kukish, Ryan Maierson, David Walker, Suneel Basson-Bhatoa, and Catherine Campbell Special purpose acquisition companies (SPACs) have emerged, somewhat unexpectedly, as the hottest market trend in … Continue Reading
Sponsors should consider leveraging technologies and diligence practices to tackle today’s increasingly complex supply chains. By Paul Davies, Tom Evans, David Walker, Michael Green, Hannah Berdal, and Catherine Campbell Global supply chains have come under significant pressure in recent years, compounded by the effects of this year’s pandemic and shifting global policy agendas. In our … Continue Reading
Court of Appeal sets out correct approach to transfer of long-term Insurance. By Victoria Sander, Jon Holland, Alex Cox, and Duncan Graves Latham & Watkins has won an appeal on behalf of Rothesay Life Plc (Rothesay) in an unprecedented challenge to the High Court’s refusal to sanction the transfer of around 370,000 annuity policies in … Continue Reading
By David J. Walker, Tom D. Evans, and Catherine Campbell Current Trends The M&A market is constantly evolving — from the predominantly seller’s market of H2 2019, to the tumultuous times of H1 2020, dynamics are shifting. Deal terms vary by transaction size, industry sector, and jurisdiction. Having a thorough knowledge of market trends is … Continue Reading
By Robbie McLaren and Catherine Campbell Current Trends The M&A market is constantly evolving — from the predominantly seller’s market of H2 2019, to the tumultuous times of H1 2020, dynamics are shifting. Deal terms vary by transaction size, industry sector, and jurisdiction. Having a thorough knowledge of market trends is critical to negotiating and … Continue Reading
Despite practical challenges, earnouts are a tool that PE buyers should increasingly consider to reconcile differences and get deals done. By Alexander Benedetti, Giancarlo D’Ambrosio, Sebastian Pauls, Laura Kichenside, Catherine Campbell, Tom Evans, and David Walker The use of earnouts, though historically disliked by PE buyers, is increasing across Europe. Earnouts can provide a way … Continue Reading
Healthcare artificial intelligence is a promising sector for PE investors that requires careful navigation, particularly given divergent regulatory approaches. By Jon Fox, Frances Stocks Allen, Catherine Campbell, Tom Evans, and David Walker PE funds invested more than US$14 billion in healthcare (including pharma) in 2019, up from US$3.5 billion in 2013, and interest is likely … Continue Reading
Successfully executing an acquisition from stress, distress, or insolvency requires a creative approach to reconcile competing interests. By Simon Baskerville, Jack Isaacs, Hyo Joo Kim, Catherine Campbell, Tom Evans, and David Walker The COVID-19 pandemic has brought a heightened risk of financial difficulty and insolvency for companies. Whilst there have been relatively few formal insolvencies … Continue Reading
European PIPEs — which have experienced an uptick due to COVID-19-related market volatility — present unique structural, informational, and governance considerations for private equity investors. By Richard Butterwick, Chris Horton, Tobias Larisch, Harald Selzner, Anna Ngo, Hector Sants, Catherine Campbell, Tom Evans, and David Walker European private investments in public equity (PIPEs) have historically been … Continue Reading
Companies and investors must consider the impact that poor corporate culture may have on their potential to achieve an exit, in particular an IPO. By David Berman, Richard Butterwick, Chris Horton, Robbie McLaren, Anna Ngo, Nell Perks, Catherine Campbell, and Charlotte Collins It is now apparent that no institution or business unit, whatever its geography, … Continue Reading
Amid FDI screening regime expansion, deal teams have opportunities to capitalise on newly available exemptions, but must beware novel complexities. By Jonathan Parker, Rachel K. Alpert, Stephanie Adams, Gillian Bourke, Zachary N. Eddington, Catherine Campbell, Tom Evans, and David Walker US intervention in the proposed acquisition of hotel-software company StayNTouch by a Chinese investor and … Continue Reading
Buyout firms planning an acquisition or preparing a portfolio company for exit must consider the impact of poor corporate culture, particularly on a potential IPO. By David Berman, Chris Horton, Robbie McLaren, Anna Ngo, Nell Perks, Charlotte Collins, Catherine Campbell, Tom Evans, and David Walker No institution, whatever its geography, industry, sector, or size, is … Continue Reading
Buyout firms must beware the unique legal, regulatory, and commercial issues that can complicate sports transactions and impact returns. By Patrick Mitchell, Alex McCarney, Stewart Robinson, Catherine Campbell, Tom Evans, and David Walker Private equity interest in sports assets has grown over the last few years, with investments in teams, leagues, and other members of … Continue Reading
Digital due diligence becomes increasingly important when buying digitally native beauty brands. By Deborah J. Kirk, Linzi Thomas, Camilla J. Dutton, Laura Kichenside, Catherine Campbell, Tom Evans, and David Walker Recent high-profile beauty M&A deals, coupled with current economic uncertainty, have brought renewed interest in the “lipstick effect”. Much cited in the aftermath of the … Continue Reading
By Richard Butterwick, Nick Cline, Robbie McLaren, Terry Charalambous, and Catherine Campbell In a complex and competitive market, minimising and mitigating risk in M&A is a key concern for deal teams. High demand for assets saw strong deal volumes and values in 2019, following a standout year in 2018. The search for opportunity has brought large corporates … Continue Reading
M&A deal teams should take note of heightened scrutiny of HR and employment practices by antitrust enforcers in the US and Europe. By Richard Butterwick, David Little, Elizabeth Prewitt, Sarah Gadd, Joshua Chalkley, Anuj Ghai, Catherine Campbell, and Peter Citron No-poach, non-solicitation, and wage-fixing agreements — arrangements between companies seeking to agree wages, or prevent … Continue Reading
Considerations for non-US acquirers looking to buy a publicly traded US-based company in a negotiated (i.e., friendly) transaction. By Thomas W. Christopher, Bradley C. Faris, Alexander B. Johnson, Amanda P. Reeves, Les P. Carnegie, Kristin N. Murphy, and Kaitlin Verber In 2019, the public M&A market in the US continued at a strong level. A … Continue Reading
