Law Firm M&A is on Record Pace for 2018
While major law firms provide valued counsel to clients during this current wave of corporate mega-mergers, some of these firms face the same issues, as the legal industry is itself experiencing merger mania.
The Rise of Private Equity M&A Deals
We’ve written a lot about mergers and acquisitions over the last year. The market is certainly robust, with megadeals leading the way. In fact, the M&A market is on pace for a record year according to Bloomberg, exceeding the $4.1 trillion total of 2007. But not all deals involve a combination of two companies. In fact, private equity M&As, where a fund developed by a PE firm purchases an asset, are in the midst of a strong run of growth.
According to Thomson Reuters, the rate of PE M&A deals is on the rise. During the first half of 2018, they accounted for 27 percent of all M&As, up from 24 percent in 2017. Not only are the total number of these deals on the uptick, but their value is increasing as well. The same research shows the total value of the deals from 1H 2018 were up 36 percent year over year.
Top 5 Industries at Risk for Restructuring
While the stock market hovers around all-time highs and unemployment is at less than 4 percent, it’s easy to assume that these are the best of times when it comes to the U.S. economy. But for some industries, these are most certainly the worst of times as corporate bankruptcies are surging to levels we haven’t seen since the waning days of the Great Recession.
How Will The Trade War With China Affect M&A?
The effects of the emerging trade war between the U.S. and China is starting to be seen in various industries on both sides of the Pacific. In July, the Trump administration implemented a 25 percent tariff of $34 billion in goods from China, this according to the Brookings Institute. These tariffs will be especially felt on machinery, semiconductors and other technologies. Earlier this week, Washington doubled down by adding another $16 billion in tariffs.
Is The Auto Lending Market Bubble Going to Burst?
The U.S. economy seems to be humming along. Unemployment is at just 3.9 percent after hitting an 18-year low in May 2018, and real GDP is forecast to grow at 3.1 percent for 2018. While news about the economy and the stock market, which is just off record highs, seems to be getting all the headlines, there is another area that’s in record territory but getting almost no news. What’s seeing tremendous growth under the radar are auto asset-backed securities (ABS).