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In the last two blog posts, we walked through capital structure and how it impacts M&A activities and vice versa. Highly levered companies are less able to manage financial shocks, such as lost of a major customer, shock to the economy such as the 2008 Great Recession, etc.
But what happens when they transpire during the gap period between signing and closing an M&A transaction? Some 95% of M&A deals include a MAC out. Lawsuits get filed. And disasters happen. Such are the vicissitudes of business. describe key cases that provide important context for the preparation of MAE clauses.
Cross-border mergers and acquisitions (M&A) can unlock a company’s global ambitions, open new markets, and secure a competitive advantage. However, entering the intricate realm of cross-border M&A deals requires resilience and adaptability. Devensoft helps hundreds of global acquirers streamline their M&A processes.
government shutdown disrupting the market for IPOs, Brexit uncertainty, natural disasters and various other crises, cross-border M&A activity momentum continues. New records were attained in the past twelve months, eclipsing the previous highs set pre-2008 financial crash. businesses touching “critical technologies.”
On September 24, Cooley M&A partner, Garth Osterman, moderated a webinar on the current trend in going public: SPACs! starting in the early 2000s and ending around the start of the 2008-2009 financial crisis, and the second (SPAC 2.0) compares to the prior two iterations of SPAC activity, with the first (SPAC 1.0)
Ron rn rn rn About The Guest(s): Simon Bedard is the founder and CEO of Exit Advisory Group, a boutique M&A firm in Australia. rn Summary: Simon Bedard is the founder and CEO of Exit Advisory Group, a boutique M&A firm in Australia. rn Legacy and the impact of money should be considered in business exits and negotiations.
In the interconnected global economy, understanding cultural nuances plays a pivotal role in business success. Hofstede's Cultural Dimensions Theory is a comprehensive framework that explains and connects these cultural subtleties. Take Russia, a country with a high PDI.
Investment Bankers M&A advisory is replete with examples of retainer fees. Investment Bankers M&A advisory is replete with examples of retainer fees. While they're seen in numerous sectors, their significance shines particularly in investment banking , private equity, and corporate finance.
In a May blog post we discussed several initial observations regarding the dozens of M&A transactions that were signed prior to March 2020 and that were in jeopardy as a result of COVID-19. In other words, the specific performance remedy is conditional, and neither buyer nor the sponsor can be forced to close without the debt financing.
In the seven (long) weeks since, we have observed (from our respective home offices) M&A love stories fall apart as a result of the pandemic in a number of different ways, including: “Let’s Just Be Friends – Woodward/Hexcel. ” billion merger of equals in early April and go their separate ways. billion merger.
From 2008 to 2018, the total R&W policies bound per year in North America rose from 40 deals, providing $541 million of coverage to 1500+ R&W insurance transactions, providing aggregate coverage of $38.6 Aon estimates that over 45% of all private M&A transactions in North America had R&W insurance in 2018. [2].
M&A activity in physician practices continues to grow and outpace other sectors as deals in the healthcare industry are coveted by investors for their strong growth, recession resistance, and superior historical returns.
M&A practitioners have long advised boards of directors that the Delaware courts have never found that the events or circumstances in a particular transaction met the contractual standard of having a material adverse effect (or MAE) as defined in a merger or acquisition agreement. We can no longer give this advice. 2018-0300-JTL (Del.
How many of us know people who lost their homes in the 2008 mortgage crisis? It is no different in the world of M&A. The lender can negotiate for a secured interest in specific corporate assets and then liquidate those assets for its payment. A lender’s willingness to extend credit is based on how it would get paid: 1.
General trends in life sciences M&A. While 2020’s M&A landscape was characterized by whiplash volatility from choppy deal activity in the first half of the year to a surge in volume in the second half, that momentum accelerated in 2021, with no signs of slowing down heading into 2022. driven assets.
Highlighted below are key issues that touch governance and M&A matters in our current environment: Public Company Clients. On Sunday, the governor of California called for all bars and nightclubs within the state to shut down, restaurants to reduce capacity in half and urged anyone over the age of 65 to self-quarantine at home.
So far this year, deal parties are approaching M&A with cautious optimism. This series of Cooley M&A blog posts include some brief observations that offer some M&A highlights over the past year and our thoughts for the year to come. Read more from our 2017 M&A Trends Series. The Trump Effect.
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