A&O Shearman sheds light on global dealmaking in new report

Multinational firm’s partners write on M&A in a time of turbulence

A&O Shearman sheds light on global dealmaking in new report

Global law firm A&O Shearman has shared the most recent edition of its report tackling key topics, trends, and opportunities in mergers and acquisitions in major markets and jurisdictions worldwide for the first half of this year. 

The multinational firm’s partners across its almost 50 offices worked on a series of articles seeking to examine the macroeconomic, regulatory, and political considerations impacting transactional activity in various industries, sectors, and businesses around the world, according to A&O Shearman’s news release. 

The report titled “Global M&A Insights: Lateral thinking in fast-moving markets” aims to address how trade developments affect major deals and other transactions. The report also seeks to assist buyers and sellers alike in traversing the turbulent landscape of mergers, acquisitions, and other strategic alternatives. 

Topics tackled

According to the global firm’s news release, the report reveals specific insights on the following subjects: 

  • preferred equity instruments, which have drawn the interest of investors interested in novel and creative ways to deploy capital 
  • private equity, which has stayed active, especially among mid-market take-privates and distressed acquisitions 
  • private credit, which has stepped in to support deal financings 
  • the life sciences sector, where companies and investors have been seeking innovative transactional structures in response to rising costs, complicated drug development, and challenging markets 
  • the US outbound investment security program, which has been impacting joint venture structuring and counterparties associated with “countries of concern” such as China, Hong Kong, and Macau 
  • industrial companies, which have been navigating energy costs, tariffs, and antitrust policies 
  • defence M&A in Europe, where deal activity has been rising alongside increasing military investments and steps to streamline regulatory frameworks 
  • take-private activity, which has been speeding up across Southeast Asia as de-listings in Singapore and Hong Kong increasingly inspire dealmakers to review ownership thresholds, governance rights, and compliance with new international standards 
  • Europe’s chemical, steel, and other basic industries, which have encountered challenges caused by high energy costs, renewed tariff barriers, and social and environmental obligations, resulting in implications for European merger enforcement 

“The rapidly changing macro landscape through the first six months of the year has made M&A deals challenging to execute,” said an article authored by A&O Shearman partners David Broadley from London, Dirk Meeus from Brussels, and Scott Petepiece from New York. 

 “Global M&A by value stood at USD1.6 trillion during the first half of the year, which although higher than during the same period last year masks a significant drop between Q1 and Q2,” the partners wrote in the article titled “M&A in a period of turbulence.”