Marriage & Acrimony: Recent Trends in M&A Disputes
RODERICK LAI, WESLEY PANG, DUNCAN WATT, STEVEN YUEN
G
lobal M&A activity has slowed significantly – the total value of M&A fell to US$732.82 billion in the second quarter of 2023, from $1.14 trillion in the second quarter of 2022 according to Dealogic data as of June 29 20231. While there have been fewer ‘marriages’ in the past year, we are seeing an uptick in acrimony and ‘divorces’. By that, we mean M&A related disputes in the context of both ongoing M&A activity and deals that have been completed in recent years. This growth appears to have been prompted by the economic headwinds that have seen all
businesses suffer. These include record levels of inflation and high interest rates, coupled with a slower than expected economic recovery by the second largest economy in the world, China, and the continuing conflict in Ukraine. Therefore, obtaining maximum value from M&A ongoing and past activity has never been more important. This article explores three scenarios in M&A disputes that have come to the fore in recent times, highlighting their implications and possible mitigating measures for businesses and their inhouse lawyers.
1 See Reuters.com, reported on 1 July 2023: https://www.reuters.com/markets/deals/global-mergers-acquisitions-plunge-q2-dealmakers-see-green-shoots-2023-06-30/ VOL 2 ISSUE 7, 2023
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