Klingsberg of Freshfields Expects an Uptick in Hostile M&A

The video discusses the current priorities of corporate boards, focusing on bridging valuation gaps and exploring new business lines post-COVID. It highlights the role of investors and synergies in mergers and acquisitions, emphasizing the influence of ESG and activist investors. The challenges of unsolicited M&A activities, particularly with stock consideration, are explored. The video also examines the robust M&A market amid the pandemic and economic uncertainties, driven by strong financing and investor pressure.

What is one of the main reasons for the current enthusiasm in M&A activities?

• Lack of investor interest

• Decrease in stock prices

• Synergies from mergers

• High valuation gaps

What is a significant challenge in conducting unsolicited M&A deals?

• Limited market opportunities

• High regulatory barriers

• Difficulty in using stock as consideration

• Lack of interested buyers

Why is there a strong push for companies to emerge as consolidators?

• To reduce operational costs

• To increase employee satisfaction

• To avoid being left behind in new business lines

• To focus on core business areas

Despite economic challenges, what has contributed to the robust M&A market?

• Drying up of financing

• Strong financing and investor pressure

• Decreasing investor interest

• Lack of strategic opportunities

What role does financing play in maintaining M&A activity?

• It limits the number of acquisitions

• It facilitates acquisitions and boosts market activity

• It discourages investor participation

• It increases the cost of mergers