Herbert Smith Freehills, a large Asia Pacific-based law firm, makes the following prediction for M&A trends in 2015. It also evaluated its performance on predicting this year’s trend, which is always helpful to establish credibility.
1. Increased M&A activity in 2015 as companies seek to grow, driven in part by PE
2. Favored sectors are property, resources and financial services.
3. Increased M&A activity from Chinese acquirers post Free Trade Agreement
4. Developments in Chinese regulatory approvals that will favor M&A
5. Target companies to scrutinize bidders carefully to reduce risk and uncertainties on deal structuring
6. Lack of disclosure by public companies to continue as it is seen to encourage M&A activity
7. Competition law reform underway to encourage more M&A
8. Truth in takeovers rule to remain in full force, despite some market commentators criticising the rule
9. Creative deal structures
10. Limited law reform, unless it can cut red tape significantly