find the latest legal job
Corporate and Commercial Partner
Category: Corporate and Commercial Law | Location: Adelaide SA 5000
· Adelaide CBD · Join a leading Adelaide commercial law firm
View details
Freelance Project Finance Lawyers
Category: Other | Location: All Australia
· Vario are looking for freelance lawyers with experience in project finance ideally within the renewable energy sector
View details
Vario Freelance Lawyers
Category: Construction Law | Location: All Australia
· We are looking for lawyers who appreciate the endless possibilities that a freelance career can offer.
View details
Freelance Construction Lawyers
Category: Construction Law | Location: All Melbourne VIC
· We are looking for construction lawyers who appreciate the endless possibilities that a freelance career can offer.
View details
Banking Associate - 1-6PQE - Allen & Overy
Category: Banking and Finance Law | Location: United Kingdom
· Banking Associate - 1-6 PQE - Allen & Overy
View details
Key M&A trends identified

Key M&A trends identified


An international law firm has released its latest quarterly M&A report, revealing significant trends affecting this sector in Australia and around the world.

According to Allen & Overy’s latest quarterly global M&A Insights report, deal values continued to shrink in the third quarter of 2016, but deal volumes remained stable.

The report showed that deal values have fallen by 24 per cent in the year to date, compared to last year’s record-breaking round of huge transactions.

A big trend highlighted in the report was that all regions have seen a decline in deal activity.

“The slowdown in deal activity is being felt across all regions, with the US – for so long the engine room of global deal-making – seeing a 32 per cent decline in transaction values compared to the same period last year, China a 26 per cent fall and western Europe an 18 per cent contraction,” the report said.

“Chinese outbound investment continues apace, however, as investors continue to pursue an increasingly diverse range of assets in markets across the world, despite growing sensitivity in some jurisdictions over national security.

“In the year to date, outbound deals have soared and are already at US$141 billion compared with US$110 billion for all of 2015.”

Despite these results, the report noted the US is still the most attractive global inbound target market for M&A, followed by the UK, which overtook Switzerland in the third quarter.

Another key trend identified in the report was that private equity and infrastructure deals remained steady worldwide.

“The private equity sector remains active and pipelines for the coming quarter look strong, with funds making a flight for scale and quality, and transaction values increasing, although deal volumes have declined,” the report said.

The report noted that the value of life sciences and TMT deals have dropped from their record levels of recent years. Financial services deals also decreased in the quarter.

Furthermore, the report found that political and economic worries continued to mount, affecting transactions throughout the quarter.

“Although Q3 is traditionally a quiet quarter, the decline in the overall value of transactions has been particularly marked this year,” the report said.

“It is clear that investors are trying to come to terms with significant political and economic worries – not least the long-term effect of Brexit, the impact of a fractious US presidential race, ongoing pressure on commodity prices and continued concern around economic slow-down in China.”

Commenting on the report, Allen & Overy Sydney-based corporate partner Jamie Palmer said China recorded strong outbound M&A activity, with this trend likely to continue.

“The big story continues to be strong outbound activity from China,” Mr Palmer said.

“We are seeing Chinese bidders competing aggressively with one another (as well as the rest of the field) for the same assets.

“Chinese bidders are also teaming up with local joint venture partners who are highly skilled in deal execution. We expect this trend to continue.”

Like this story? Read more:

Book commemorates diamond milestone for WA law society

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

Key M&A trends identified
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Jan 23 2018
Disrupting traditional archiving and storage methods
Promoted by Fileman TRENDS COME and go but technology and its disruption to the legal landscape h...
Scales of Justice
Jan 23 2018
WA to close ‘legal loophole’ on gender reassignment laws
Laws in Western Australia will soon change to permit married people to undergo gender reassignment s...
Lawyers take to Twitter to share career stories
Jan 22 2018
Lawyers take to Twitter to share career stories
The #mypathtolaw hashtag has been embraced by legal eagles to swap stories with the Twitter communit...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...