On The Merits Why a Deals Surge in 2025 May Not Be a Law Firm Boon
Dec 10, 2024
Neil Barlow, a private equity partner at Clifford Chance, shares his expertise on the anticipated surge in mergers and acquisitions. He discusses how a favorable political climate might ignite M&A activity, yet paradoxically reshape the types of deals law firms handle. Barlow highlights the shift from complex transactions to a greater volume of simpler ones, emphasizing the evolving nature of private equity deals. He also addresses legal challenges and the critical role of law firms in navigating these dynamic market conditions as they strive for success in 2025.
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Shifting Deal Dynamics
- Private equity firms are selling pieces of businesses amongst themselves instead of full buyouts.
- This complexity creates unique work for lawyers, like navigating co-investor relationships and governance.
Complexity in Partial Sales
- Selling portions of businesses to other private equity firms increases deal complexity.
- Lawyers navigate regulatory hurdles, relationship building between firms, and governance complexities.
Impact of Outright Exits
- A shift to outright exits might not significantly change workload for law firms.
- Full divestments of global businesses still require substantial legal work, especially in the current geopolitical environment.