Harvey Cohen Discusses Current Cross-Border M&A Developments in NYC at Global Law Conference

January 7, 2014News Releases
“International M&A: Getting it Right in Tough Times” was a featured session in the recently-held Winning in Global Markets conference sponsored by ALFA International in New York City. Harvey Cohen, partner at Dinsmore and Shohl, participated in the panel along with senior investment bankers from JP Morgan and Bank of America, as well as senior M&A counsel from leading San Francisco and Australia law firms.

Key insights included the recent and noteworthy wave of stockholder activism by numerous investment funds in a range of public companies, including Procter & Gamble, Apple, Talisman Energy, Nuance Communications, Hologic and Air Products. Daily, funds impact corporate strategy and choice of leadership, often after taking only a small percentage of publicly available stock. The funds and their targets frequently have large stores of cash and the environment is ripe for this type of activism. In many cases, the funds’ involvement leads to changes in corporate personnel, sales of divisions or product lines/global business units or sales of entire companies.

The lack of numerous traditional M&A transactions, failure of many proposed deals to close, increased use of cash as purchase currency as opposed to the acquirer’s stock and the reduction in third party financing all continue to dampen the M&A market. Importantly, the panelists agreed that the cross border nature of the world economy creates international deals or aspects of deals more than ever and that this trend only will increase over time.

“It was an honor to be asked to participate with such International M&A luminaries,” concluded Cohen.