Published in The Metropolitan Corporate Counsel, June 2007.
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As discussed in Part I of this series, similar trends currently characterize the private equity (“PE”) and mergers and acquisitions (M&A) environments in the U.S., Sweden and Norway:
- increasing M&A buyout activity by PE firms,
- sales of companies through competitive controlled auctions,
- less negotiation of purchase agreements, with fewer representations and warranties, almost no conditions to closing, and weaker indemnities from sellers,
- a shifting of risk to buyers, as more PE capital chases acquisition opportunities, and
- a consequent upward tendency in price; basically a seller’s market.
On a recent business trip, I discussed this subject with partners at seven major law firms in Stockholm and four major law firms in Oslo, with whom we work.
My Swedish and Norwegian colleagues acknowledged developments like those above, but pointed out important differences in their markets. These differences present opportunities in Scandinavia for U.S. strategic or PE buyers, looking to acquire new technology or make negotiated strategic acquisitions. Read more …
