Asia M&A documentation
More Macs, bigger caps
May 01, 2009
This is distressed M&A today: more Mac clauses, completion accounts and warranties. No longer timetables though
Although there has been less M&A in the Asia Pacific and Australian markets during the financial crisis, there are pockets of resistance in which buyers are willing to purchase choice assets at attractive (but often volatile) valuations. A tightening of credit means different potential purchasers, with private equity relegated to the sidelines by a lack of liquidity, and even sovereign wealth funds hesitant; in their place are cash-rich corporates. The balance of power is also shifting back towards the buyer, which will be reflected in the terms on which deals are completed.
The road to here
To appreciate the progression in this market, it is necessary to understand the position from which deal terms are moving. The second half of 2007 saw deal volumes peak in each of Asia Pacific, the UK and Australia. In what was a clear seller's market, big valuations were accompanied by a deterioration in buyer...
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