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
M&A good times might not last

M&A good times might not last

The author of a major report on the Australian M&A market has cast doubt on whether the high volume of deals can be sustained this financial year.Freehills launched its 2011 Public Mergers…

The author of a major report on the Australian M&A market has cast doubt on whether the high volume of deals can be sustained this financial year.

Freehills launched its 2011 Public Mergers & Acquisitions Report today (14 September).

The report showed that there were 104 announced deals in the 2010-11 financial year, which was just shy of the pre-global financial crisis [GFC] level of activity in 2008.

"Any remaining effects of the previous GFC in terms of M&A activity is behind us," the report's co-author, Perth based corporate partner Simon Reed told Lawyers Weekly. "During the GFC period we were down to 72 deals and the total spend was $19 billion. In 2011, we had 104 deals worth $79 billion."

While the last financial year was a boon for M&A lawyers, recent global share market volatility has thrown some doubt into the market. In July and August this year, there have been 18 announced deals, down from 23 in the corresponding period last year.

"I am not confident that the number of deals will be the same [for FY12], but I am confident that overall deal value will be relatively stable," said Reed. "The number of deals is likely to drop-off, particularly in the mid-market range, but I expect M&A activity to continue with key deals where the strategic value is long-term."

According to the report, despite high profile transactions such as the proposed $8.4 billion merger between the Australian Securities Exchange and Singapore Exchange - with Freehills acting for the ASX - being blocked, more than 70 per cent of the announced deals came to fruition.

"There were alot of friendly deals," said Reed. "If you see the trend coming out of the GFC period, we have got friendlier and friendlier as we have come into better economic times... and with that, success rates increase."

Energy and resources fuelled much of the M&A activity, with 48 of the 104 deals coming from that sector. Despite being the most active area of the M&A market, for the first time since 2008, energy and resources did not provide more than half of the announced deals.

"The appetite for energy and resources remains, but offshore investors are looking at other jurisdictions, such as Africa and South America, just as closely," said Reed. "What we have seen is transactions in other sectors, such as health, financials, infra structure and utilities, experience a heightened level of activity. That is a trend we would expect to see continue and private equity is a major part of that."

The report said that there were eight public private equity M&A bids in FY2011, one more than 2010.

Senior associate Mark Tyler also helped to compile the report.

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

M&A good times might not last
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...
APPOINTMENTS
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'...
opinion
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...
Help
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 & ...