At the recent International Bar Association’s 12th European Corporate and Private M&A Conference, David Zahra & Associates gained valuable insights into the evolving dynamics of the global M&A market, which is expected to show improvement in 2024 compared to the previous year.
The conference, held in Paris between 7 and 9 February 2024, highlighted a shift towards cautious optimism among stakeholders, underpinned by a rejuvenation of confidence on both the client and sponsor sides. Despite a slow start for equity markets, the debt markets have shown robust early performance, signalling a positive trajectory for the year ahead.
The event, which drew 589 participants from 45 countries, also delved into the impact of regulatory changes, including the European Foreign Subsidies Regulation (FSR), and geopolitical tensions on investment trends. These factors contribute to a more complex deal-making landscape, with extended transaction timelines and a strategic emphasis on earnouts to bridge valuation gaps.
A key theme of the conference was the significant role of financial sponsorship in the M&A sector, highlighting its evolution and sustained growth post-Covid. Additionally, the importance of Environmental, Social, and Governance (ESG) considerations in investment strategies was underscored, reflecting a broader market focus on sustainability and ethical business practices.
The discussions also covered the challenges of tighter lending conditions, the necessity of comprehensive due diligence, and innovative deal structuring to overcome current market hurdles. With the M&A environment becoming increasingly regulated, the conference provided essential insights for legal professionals to navigate these complexities, emphasizing the need for adaptability and strategic foresight in the ever-changing global market.
Our firm’s commitment to keeping our clients informed and strategically advised on these developments remains unwavering, ensuring they are well-positioned to capitalize on opportunities within the dynamic M&A landscape.
