Specialist Corporate and Commercial Lawyers
In 2014, we made various observations in relation to the Hunter M&A market, including trends that we expected to see continue during 2015. In this article, Andrew Windybank, Principal of our corporate and commercial group, reflects on these observations and highlight further trends that are likely to continue in 2016.
While FY14 was overshadowed by a ‘subdued climate’, we reported the emergence of a number of positive trends. In FY15, some of these positive trends have developed into a series of significant transactions and what appear to be longer term trends for this region. This is positive news for Hunter businesses.
Our commercial team has acted on a number of significant transactions including:
With the end of the financial year out of the way and the Christmas holiday period just over the horizon, October is often a pivotal month for business. As advisors to leadership teams, we can typically gauge the year ahead by the dialogue we see (and hear) in October.
This year, in Newcastle and the Hunter, our ‘October discussions’ are neither optimistic nor pessimistic. If anything, the local ‘mid cap’ M&A and capital raising market appears flat and the focus of our discussions is for legal assistance to prepare for the future. For example, we are being called on to document restructure transactions – either for debt or equity changes. The number of these types of assignments has significantly increased in the past 2 years and we expect this trend will continue in FY16.
At the same time, we anticipate that in-bound business opportunities will continue to increase. In the past 12 months, we have advised on large real estate transactions, manufacturing joint venture arrangements and IP licensing and co-operation arrangements with Chinese counterparties. Our clients are increasingly approaching us for advice regarding doing business with China and the USA. We have close relationships with Chinese and American advisors that have greatly assisted our clients during the past financial year.
While interest in dealing with China and the US continues to rise, so do the opportunities available to Hunter-based businesses for support in dealing with foreign counterparties. For example, we have observed a rise in networking and information initiatives – such as HunterNet’s focus on doing business in China and the University of Newcastle’s ‘China Week’ business forum. These types of events are extremely useful for clients considering expansion into China, particularly in the manufacturing and services sectors.
This article is not legal advice. It is intended to provide commentary and general information only. Access to this article does not entitle you to rely on it as legal advice. You should obtain formal legal advice specific to your own situation. Please contact us if you require advice on matters covered by this article.