Event report

Past Event | 2024 Energy & Infrastructure M&A Outlook in Asia-Pacific: Volatility and opportunity

Throwback to our insightful discussion on M&A Outlook in the Asia-Pacific Energy & Infrastructure sectors.

Thank you very much to our esteemed speakers Hogan Lovells’ Stephanie Keen, Head of Corporate & Finance, Asia-Pacific, Matt Bubb, Head of Infrastructure, Energy, Resources & Projects, Asia-Pacific, Julien Reidy Senior Lawyer and Mark Vincent Counsel for an informative presentation and sharing some hints and tips about running an efficient and successful process, whether acting for the seller or the buyer.

Please find below the key takeaways from the session: 

  1. Choosing the right deal structure: When considering how to structure an M&A transactions, it is important to keep in mind the specific positions of the parties, their priorities and any specific time and cost implications of the chosen approach. For instance, while sellers often prioritise clean exits, buyers focus on return on investment and mitigating risk.  Importantly, M&A deals do not always fall neatly within the “Share Sale” or “Asset Sale” categories, but may include a combination of those.
  2. Due diligence process:  Undertaking a comprehensive and accurate legal due diligence process is critical for the assessment of an M&A transaction and its legal risk and exposure. While buyers typically provide extensive due diligence request lists, sellers must be thoughtful about the information they provide to potential buyers, especially when it comes to competitively sensitive information.
  3. Setting up your team: Putting the right “deal team” together is crucial for the smooth and efficient running of an M&A process. The size of the deal team and the role of the legal team will depend on the size and complexity of the deal. It is important to consider if the involvement of subject matter specialists may be required to advise on elements of the transactions, especially if such elements may have significant value implications.
  4. Utilising technology: M&A deal teams can utilise various M&A Software Platforms to enable activities such as document management, deal due diligence, tracking of financial data, and reporting on current developments. These include virtual data rooms, due diligence management tools, project management and post-merger management platforms.
  5. 2024 Predictions: M&A deal volume is likely to see an increase in 2024, with the energy, healthcare and ESG sectors promising the most growth potential. The biggest growth opportunities for the Energy & Infrastructure M&A landscape is likely to arise out of and be related to 1) the increased dominance of renewable energy projects, 2) businesses’ increased pursuit of digital transformation and 3) companies’ continued focus on their environmental, social and governance (‘ESG’) goals and agendas. With this in mind, strategic and PE investors will focus on green ambitions when looking for M&A opportunities.

A special thanks for Hogan Lovells Lee&Lee for hosting the event and the networking session. 

For more information, please contact Vanessa Hobbs vhobbs(@)fccsingapore.com

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