find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Legal Counsel
Category: Corporate and Commercial Law | Location: North Sydney NSW 2060
· 18 month fixed term contract · 3-5 years PQE with TMT exposure
View details
Mergers slump leaves firms unfazed

Mergers slump leaves firms unfazed

DESPITE A noticeable decline in global mergers and acquisitions activity over the last quarter, total activity for 2007 still exceeds that for the whole of 2006, according to newly released…

DESPITE A noticeable decline in global mergers and acquisitions activity over the last quarter, total activity for 2007 still exceeds that for the whole of 2006, according to newly released Thomson Financial tables.

As reported in Lawyers Weekly last week, Thomson’s Australian tables state that Freehills ranked number one in M&A deals, taking 54.3 per cent of the market share in the first three-quarters of the year.

But globally, firms are not necessarily celebrating as even in the top ranks they have noticed a slump in M&A activity.

Figures from the global tables reveal a 66 per cent slump in the international M&A market which, due to the frenetic pace of worldwide M&As, had carried into the first few weeks of the third quarter. A Thomson Financial review of the tables said this was “fuelled by financial sponsor activity and attractive financing conditions”.

It also suggested an initial enthusiasm quickly evaporated in the midst of a “declining credit environment” and “investor uncertainty”.

Michael Walter, a London-based Herbert Smith corporate division partner, told Lawyers Weekly that broadly speaking, these figures provide a realistic impression of the international M&A market.

Walter confirmed that Herbert Smith had noticed a slump in M&A work and, “had a much quieter August and September as compared with the first seven months of the year”.

He attributed this largely to the “US subprime mortgage market problems and the accompanying turbulence in international financial markets”.

According to Walter, frictions in the market were further exposed by the high-profile Northern Rock litigation in the UK. The well-publicised problems of this mortgage lender have lead to “exacerbated market instability,” he said.

Despite the Thomson tables narrating a dire outlook, Walter remained positive the market would improve, but qualified this prediction with caution. “We are confident it will, and the green shoots of recovery are already visible, but it would be a very brave man who predicted what market conditions would be like in six months’ time,” he said.

Regardless of the recorded slump, the report reveals that “during the first nine months of 2007 worldwide M&A activity increased 50 per cent over the same period last year to reach US$3.6 trillion, already eclipsing the full-year 2006 totals”.

According to the report, European activity contributed to 40 per cent of worldwide volume while activity in the US accounted for 38 per cent of all announced, a change from to 41 per cent during the first nine months of 2006.

Walter said that Herbert Smith is not troubled by speculative reports of worsening market conditions. “Given the strength of our litigation/arbitration and restructuring practices we believe we are well-placed to grow our business whatever happens in world markets”.

Like this story? Read more:

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

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Mergers slump leaves firms unfazed
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
LCA president Fiona McLeod SC
Aug 17 2017
Where social fault lines meet the justice gap in Aus
After just returning from a tour of the Northern Territory, LCA president Fiona McLeod SC speaks wit...
Marriage equality flag
Aug 17 2017
ALHR backs High Court challenge to marriage equality postal vote
Australian Lawyers for Human Rights (ALHR) has voiced its support for a constitutional challenge to ...
Give advice
Aug 17 2017
A-G issues advice on judiciary’s public presence
Commonwealth Attorney-General George Brandis QC has offered his advice on the public presence of jud...
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 & ...