#37 The Legal Profession This Week - Record Breaking M&A Activity Continues; An Associates Market​

By Dheepa​

Record Breaking M&A Activity Continues

According to Eversheds Sutherland's CEO, 2021 saw the busiest transactional market in the UK since before the financial crisis (Law.com) Much of this growth was spurred by increased levels of outbound and inbound investment from the US with a particular focus on sectors like technology and healthcare - clear winners from the COVID-19 pandemic. Other sectors like real estate and infrastructure also saw increased M&A activity as focus shifted to acquiring more warehouses, operating and logistic centres to help fix gaps in supply chains that resulted from the pandemic.

While the Christmas and holiday period usually marks a slowdown in dealmaking, several firms continued to pick up M&A mandates in these areas. For example, Latham & Watkins is advising on Flutter Gaming Group’s acquisition of online gaming group Sisal. Many expect the transactional market to remain equally busy across 2022 (Law.com).

An Associates Market

The burnout among associates and the increasing war for talent has been hotly discussed over the past year. As we move into 2022, firms will work hard to retain and attract talent.

In London, US firms were reportedly offering sign-on bonuses of £50,000 and above. Beyond that, Kirkland & Ellis shortened its partnership track from 10 years to 9 years, a move that may entice more ambitious associates as the partnership route at other firms lengthens (Law.com). Many firms have also started to focus more effort on developing their mental health initiatives - ensuring that associates are able to build long term sustainable careers despite the sometimes unsustainable workloads. While mental health “wouldn’t even be mentioned” some 20 years ago according to one senior lawyer at Linklaters, senior management at some firms now expects that the topic will “move even higher up on management agendas". (Law.com)

‘Business as usual’ – the notable deals and cases which went ahead this week:

Allen & Overy is representing Selfridges in its £4bn sale to Thai and Austrian conglomerates Signa Holding and The Central Group. Skadden, Arps, Slate, Meagher & Flom and Pinsent Masons are advising The Central Group and Signa Holdings on corporate and real estate matters respectively.

In the high court this week, Mishcon de Reya successfully secured a ruling in favour of its client MAD Atelier over a dispute the restaurant group had with Michelin starred chef Axel Manes. The court found that Manes had used fraudulent business practices to induce MAD to transfer shares worth £8.3 million to one of his own companies. Manes was represented by Macfarlanes.


Image Credit: Michael715 / Shutterstock.com
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