Legal News: Key Updates You Can't-Miss! ⚖️

Kirkland tops global 2024 M&A rankings ahead of Skadden

M&A activity saw a surge in deal values last year, rising 10% to hit $3.2 trillion. Despite this, deal volume dropped by 14%, marking an eight-year low with just over 50,200 transactions.

Top Legal Advisors by Deal Value

Kirkland & Ellis maintained its top spot, advising on 784 deals worth a total of $448.2 billion and capturing a 14.1% market share. Skadden rose to second place with $422 billion across 211 deals, while Latham & Watkins took third, handling $408.4 billion across 665 deals.

Rounding out the top five were:

• Paul Weiss: $359.2 billion from 216 deals ( up from 9th in 2023)

• Sullivan & Cromwell: $359.2 billion from 159 deals (down one place)

Key Regional Insights 

• US: $1.4 trillion in deals (45% of global M&A, up 5% from 2023)

• Europe: $700.2 billion in deals (up 22%)

• Asia Pacific: $610.7 billion (up 1%)

Sector Highlights

• Technology: $499 billion (+32%), overtaking energy as the top sector

• Energy & Power: $477.4 billion (-5%)

• Financials: $452.8 billion (+51%)

Private equity-backed buyouts also saw a boost, making up 22% of M&A activity, with $705.9 billion in deals—a 24% increase from 2023.

Top Legal Advisors by Deal Count 

• Goodwin Procter: 899 deals ($159.4 billion)

• DLA Piper: 873 deals ($113 billion)

• Kirkland & Ellis: 784 deal

As we enter 2025, the M&A landscape continues to evolve, setting the stage for another dynamic year ahead.

🌍 Skadden Expands to the Middle East with Abu Dhabi Office Launch

Global legal giant Skadden has opened its first Middle East office in Abu Dhabi, strengthening its presence in the region by hiring a seasoned corporate expert Michael Hilton from Freshfields. Hilton, a key figure in the region’s legal landscape with over 20 years of M&A experience, will lead a new office and Skadden’s Middle East practice.

Key Highlights:

• New Leadership: Hilton, previously Freshfields' regional managing partner for the Middle East and North Africa, brings expertise in private and public M&A, joint ventures, and financial sponsor work across sectors like energy, telecoms, and private equity.

• Support Team: Joining Hilton are corporate partner Andrea Spadacini and white-collar defence counsel Bora Rawcliffe from Skadden’s London office, along with corporate counsel Cheree King from Freshfields Abu Dhabi.

Focus Areas:

The Abu Dhabi office, located in the Abu Dhabi Global Market (ADGM), will handle M&A, financing, litigation, arbitration, and white-collar defence.

Strategic Move: 

Skadden’s executive partner Jeremy London emphasized that the ADGM office will enhance service to local and international clients. Hilton’s deep network and expertise are expected to strengthen relationships with key stakeholders in the region.

Market Insights:

• Skadden’s move aligns with other firms expanding in Abu Dhabi, a growing hub for energy and finance.

• The firm’s global footprint now spans 21 offices, despite closing its Shanghai base in response to market shifts.

• Recent regional competition includes Gibson Dunn’s 2023 launch following a high-profile team hire from Shearman & Sterling.

🏢 Leadership Shift at Reed Smith’s London Office

Reed Smith has appointed Brigid North as the new London managing partner, marking a significant leadership change after Andrew Jenkinson’s 10-year tenure. North, a seasoned real estate partner, assumed the role on 1 January 2025 at the firm’s largest office, which houses over 350 lawyers.

Key Points:

• North's Journey: Joining Reed Smith as a trainee in 2003, North became a partner in 2015. Her expertise lies in commercial real estate, advising on developments, investments, and occupancy agreements.

• Leadership Roles: North has been active in firm leadership, including as vice-chair of the Women’s Initiative Network (WINRS) and training principal for the London office.

Jenkinson’s Legacy:

During his decade as managing partner, Jenkinson spearheaded numerous strategic initiatives:

• Talent Development: Focused on promoting internal talent and securing key lateral hires in energy, capital markets, and restructuring.

• Office Relocation: Oversaw the firm’s move to the Blossom Yard & Studios development in Spitalfields.

• Navigating Challenges: Provided steady leadership through the pandemic and technological advancements.

Reactions and Future Vision:

• Gregor Pryor, Europe and Middle East managing partner, praised Jenkinson’s contributions and expressed confidence in North’s ability to lead future growth, underscoring Reed Smith’s commitment to diversity and inclusion in senior roles.

• North affirmed her dedication to fostering the firm's entrepreneurial culture and implementing ambitious growth strategies.

Recognition for Inclusivity

Reed Smith continues to be recognized for advancing diversity, highlighted by awards such as the Race Equality Initiative and Gender Equality Initiative. The firm’s efforts reflect a broader cultural shift under the leadership of global managing partner Casey Ryan and leaders like North and Tamara Box, winner of Law Firm Leader of the Year (2023).

Commercial News: The Latest Insights You Need to Know! 📈

Alliance Pharma offered £350m - Yet another private takeover discussed!

The London Stock Exchange is facing yet another private takeover, with Alliance Pharma offered £349.7m in an all-cash deal. The AIM-listed firm, which sells over-the-counter drugs in over 100 countries, has unanimously seen its board recommend the takeover by asset manager DBAY Advisors and Edmond de Rothschild’s ERES IV fund.

After the offer was announced, the group’s stock price jumped more than 35% in pre-market trading.

The 62.5 p share offer represents a premium of about 41% to the price of Alliance Pharma stock before the news of the deal.

Why does this matter?

1. Shareholder Value: A 41% premium signals a significant increase in the Value of Alliance Pharma’s stock compared to its pre-announcement price. This incentivises shareholders to accept the offer as it maximises their return on investment.

2. Investor Sentiment: The immediate 35% jump in stock price reflects market optimism and confidence in the deal, suggesting that investors believe the premium accurately reflects or surpasses the company’s fair market value.

3. Strategic Acquisitions: For Alliance Pharma, the deal might enable greater capital resources, operational synergies, and market expansion opportunities under new ownership.

On the other hand, Britain’s retail “boomer” chains are making a comeback

UK Retailers Show Resilience Amid Economic Challenges

Despite rising costs from wage inflation and national insurance increases, established retailers like NEXT and M&S are proving their staying power. Next reported steady Christmas sales and remains optimistic, forecasting 3.5% sales growth for 2025. albeit slower than the current year’s 5.6 %.

The company is countering cost pressures with efficiency measures, such as warehouse automation and self-service tills, set to launch in February. Similarly, M&S continues efforts to save £500m by 2028.

Market conditions have shifted in their favour as mid-market rivals like Arcadia Group have exited, reducing competition. Strong cash generation is also a key advantage—Next expects £670m in surplus cash this year, fueling over £320m in share buybacks.

While challenges lie ahead, the discipline and adaptability of these retail “veterans” are helping them thrive in a changing market landscape.

Then in the States…

Blackstone Enters Growing US Accounting Sector with $2bn Deal

Blackstone, a major private equity firm, is acquiring a majority stake in US accounting group Citrin Cooperman from New Mountain Capital. The deal values Citrin Cooperman at over $2bn, highlighting rising valuations in the accounting sector as private equity interest surges.

This acquisition, set at about 15 times EBITDA, marks an increase from New Mountain’s 2021 deal at 11 times EBITDA when the firm was valued at $500m. Under private equity ownership, Citrin Cooperman’s revenue has grown from $350m to $850m through strategic acquisitions, making it one of the top 20 US accounting firms.

To ease regulatory concerns, Blackstone will own less than 50% of the audit business, with additional investors holding stakes. Citrin Cooperman partners will retain ownership stakes but also benefit financially from the deal.

This move continues a trend of private equity reshaping the accounting sector, with New Mountain shifting focus to larger firms like Grant Thronton, which recently expanded its operations internationally.

Finally - China and its Real Estate struggles

Chinese Developer Sunac Faces Liquidation Petition, Shares Drop 26%

Shares of Sunac, a once-prominent Chinese property developer, plunged 26% on Friday after revealing a winding-up petition filed in Hong Kong by Cinda Asset Management, a state-owned bad-debt manager. A court hearing is set for March 19.

Sunac defaulted in 2021 following the collapse of fellow developer Evergrande, which triggered a crisis across China’s property sector. Efforts to restructure its debt include a recent proposal to cut $11.6bn from its debt, which totalled $16.4bn at the end of 2023.

Despite earlier approval for a $10bn offshore debt restructuring plan, Sunac continues to navigate financial difficulties, reflecting broader challenges for Chinese developers amid shrinking bond issuances and mounting defaults. Authorities have intervened by cutting mortgage rates and facilitating state-owned enterprise purchases of unsold properties to stabilise the sector.

Why does this matter?

1. Economic Stability: The real estate sector is a cornerstone of China’s economy. Financial troubles in major developers like Sunac and Evergrande create ripple effects and impact economic confidence, employment, and global markets.

2. Investor confidence: With shares plunging and ongoing legal challenges, investor sentiment toward Chinese property developers remains weak. This impacts both local and international markets where these companies are listed or have issued bonds.

3. Debt Restructuring Precedents: Sunac's offshore restructuring and debt reduction efforts are being closely watched as a test case for managing large-scale defaults. The outcome could shape future strategies for handling distressed firms in China.