By Rajesh U. Kothari, Cascade Partners
Will 2022 replicate the 2021 record-setting M&A year? No, but that’s not necessarily a bad thing. 2021’s deal volume wasn’t sustainable – deals moved at a record- setting pace fueled by low interest rates, strong corporate earnings, abundant cash, 2020 carry-over and other factors. 2022 deal volume may be lower by comparison but it’s still higher than in past years and we see it remaining so for the remainder of 2022 and into 2023. However, it’s important not to focus on transaction volumes as an indicator of the overall health of M&A but rather on deal rationale. Investors need to deploy capital and scale existing platforms, and corporations need to temper their desire to grow faster than organic growth permits. These drivers suggest a strong foundation for getting a deal done.
By Robert Thompson, Ward Hadaway LLP
Ask any senior M&A lawyer how transactional work has changed over their career and most will point to the impact of technology. For the older generation this all started with the demise of the fax in favour of email and electronic documentation. The legal environment has since been subject to a massive sales push with due diligence software and programs, precedent creation software and project management systems all in theory designed to make the working lives of M&A lawyers easier, improve efficiency and profitability as well as meeting ever increasing client expectations in terms of service delivery and integration.
By Raghu Marwah and Varun Verma, RNM Capital Advisors
India has emerged as the third largest global ecosystem for startups after the US and China, with about 60,000 startups across the country. These startups not only are developing innovative solutions and technologies, but are continuously generating largescale employment opportunities. India is also the third-largest “unicorn” hub with 90 unicorns companies, only behind the US which boasts 487 unicorns, and China with 301 unicorns, and ahead of the UK which has 39 unicorn companies. “Unicorn” is a term used in the venture capital world to describe a privately held startup company with a value of over USD 1 billion.
By Jesús Ruíz Ballesteros, Ruiz Ballesteros Lawyers and Tax Advisors
The reasons for corporate reorganisation are debatable if the absorbed company is inactive. Today we bring you a resolution of the TEAR of Catalonia, dated 12 February 2018.
By Louis de Schorlemer, Corporate Diplomat
When queens and kings pass away, the faces of their heirs will rapidly show up on coins and stamps across the country. Such a transition is meticulously organised to allow the crowds to turn from mourning the deceased to celebrating the incumbent. In Mergers & Acquisitions, conveying a sense of continuity is much more challenging for the acquirer, who often lacks prior in-depth knowledge of the company culture and its propensity to embrace change. Early preparation of a step-bystep communication plan provides relief.
By Michael N. Mercurio, Offit Kurman
The time is right to sell when the owner decides they want to sell, right? This statement is too simplistic. There are two factors to evaluate the timing to sell a business – external and internal considerations.
By Ammarah Shamim and Paul Johnson, Ward Hadaway LLP
What’s happened? On 04 January 2022, the UK introduced a new set of rules known as the National Security and Investment Act 2021 (the “Act”). This gives the government the right to investigate and sometimes ban certain business transactions that involve sectors of the economy seen as ‘sensitive’ to national security.
By Peter Cohilj and Tony Nunes, Kelly + Partners Chartered Accountants
When establishing business in Australia, a foreign parent company will often incorporate an Australian subsidiary to conduct its Australian business. As the Australian company expands, the strategic acquisition and merger of an Australian competitor may occur. Forming an Australian tax consolidated group with the target can provide various advantages including:
By Stuart Noland, Nolands Capital
The Covid-19 pandemic has irrefutably had a major effect on the global business landscape, shining the spotlight on business valuations during a time when investors are scrambling to understand the impact on their businesses.
By Carijn van Helvoirt-Franssen and Roel Jansen, EJP Accountants & Adviseurs
If a Dutch company holds at least 5% of the paid-up capital on shares in another company (subsidiary), in general, the participation exemption applies. However, if the subsidiary is considered an investment vehicle, there might be some obstacles in the way. We will elaborate on that on a high level basis below.