As the markets adjusts to a new volatile normal of fluctuating valuations and financial instability, dealmakers, too, have adjusted. Many companies have been forced to look at new financial levers they can pull to stabilize their business, be it bringing in outside investors, selling’s assets, changing management teams or re-evaluating core capital expenditures.
What are the best paths toward long term shareholder value creation for dealmakers? With additional challenges and increased risk in every transaction, how have dealmakers refreshed their toolbox of risk mitigation strategies and insurance to protect themselves from deal announcement to close?
Join The Deal and a roster of senior corporate executives, private equity and institutional investors, and corporate advisers for The Deal Economy. This virtual event features four days of online sessions exploring the opportunities, obstacles and risks dealmakers face in the current environment and how to navigate through them.
The Deal Economy: Predictions and Perspectives features daily broadcasts of panel sessions and interviews, and your registration provides access to all of the sessions. You can view them live as they happen or on demand at a time that is convenient for you.
Christine O’Brien is the Head of Investment Stewardship for Elliott Management Corporation, a $40 billion hedge fund based in New York. In this role, she oversees stakeholder engagement activities, including the integration of Environmental, Social and Governance (ESG) criteria into Elliott’s investment process.
Covid-19 has impacted everything from the way we work, the way we shop, the way we socialize and, in many ways, the way M&A and private equity transactions are carried out. What does the dealmaking landscape look like as we rebound from the coronavirus pandemic and head into 2021? Sectors including software-as- a-service, healthcare IT, logistics and business services are ripe for private capital investment seeking to fund innovative companies, but how is transaction volume and pricing being affected by the current market volatility? What is the macroeconomic effect on dealmaking around the globe, and what geographic areas are most at risk? What opportunities should dealmakers be looking for as we turn the corner and face the new normal of getting a deal done?
Moderator: Steve Gelsi, Senior Reporter, The Deal
Panelist: Jeffrey Armbrister, Global Head of Direct Equity Investments, Hamilton Lane
Panelist: Michael Blankenship, Partner, Winston & Strawn
Panelist: Lonne Jaffe, Managing Director, Insight Partners
Panelist: Erik Levy, Group Head of Corporate Development & M&A, DMGT
Panelist: Chris Sugden, Managing Partner, Edison Partners
Panelist: Roumi Zlateva, Vice President, Lovell Minnick Partners
As the effects of Covid-19 ripple through public and private markets, opportunities for private equity firms and their investors are evolving. Whether a shift from growth to distressed investing or putting more money to work to help prop up struggling companies, private equity has looked to various places to find new deals. Secondary PE stakes in distressed funds have cycled back in favor while some of the recently announced buyout funds roll out off the menu for investors. Where has private equity looked for opportunities amid the financial turmoil? In which types of funds are institutional investors keen to deploy capital? Which sectors are on the top of buying lists and how has that changed since the pandemic?
Moderator: Steve Gelsi, Senior Reporter, The Deal
Panelist: Vivianne Akriche, Managing Director, Eurazeo
Panelist: Lara Banks, Managing Director, Makena
Panelist: Andrew Dunn, Managing Director, One Equity Partners
Panelist: Amy Rice, Managing Director, Oaktree Capital
Much of large cap dealmaking took a brief hiatus amid the pandemic as did cross-border dealmaking. Resources, of course, were shifted from corporate growth plans in favor of survival efforts. At the same time, however, scale and diversification seem to have grown in importance in some instances, as some geographies find themselves less effected by the global disruption, or at least quicker to get back on their feet. How has the pandemic changed the nature of cross-border dealmaking both from a logistical and practical standpoint? At what point does a company need to look at capital deployment that adds scale and diversification to a suite of businesses that may be focused on a singular market.
Moderator: David Hatch, Senior Editor, The Deal
Panelist: Daniel Adamson, Senior Managing Director, Wafra
Panelist: William Detwiler, General Partner, Fernbrook
Panelist: Jelena Guzenko, Head of M&A Americas, Siemens Energy
In the thralls of the pandemic corporations were focused on keeping their employees, customers and businesses safe in this uncertain time. But as normalcy, or at least a new normal, settles in, corporate leaders are faced with the reality of making strategic decisions which may include shedding assets during uncertain times to shore up other aspects of their business. At the same time, while investors may applaud such moves that add some near-term liquidity, such as carve-outs and divestitures, is this the right decision for long-term value creation? How should companies evaluate non-core assets at a time when sales and revenues have been depressed for the last year? How can dealmakers de-risk their M&A strategy and deploy sound scenario portfolio planning during the recovery?
Moderator: Steve Gelsi, Senior Reporter, The Deal
Panelist: Frank Aquila, Partner, Sullivan & Cromwell
Panelist: Arielle Patrick, Executive Vice President, Transaction Director, Financial Communications & Capital Markets, Edelman
Panelist: Bryan Warner, Deputy General Counsel, Budweiser Brewing Company APAC Ltd.
As government stimulus runs dry and we are faced with the true economic damage caused by months of shutdowns due to the pandemic, a “second wave” of bankruptcies is imminent. Whereas the first wave hit companies who were already struggling and exposed vulnerabilities among others, many businesses and business owners are now struggling to adapt to the “new normal” and are facing difficult financial decisions. Though times seem dark, this quagmire opens up a myriad of new opportunities for well-positioned firms who have the ability to spot a diamond in the rough. What are those indicators and how can dealmakers seize these opportunities? How can we measure potential for turnarounds in this environment?
Moderator: Larry Perkins, Chief Executive Officer, SierraConstellation Partners
Panelist: Justin Rawlins, Partner, Paul Hastings
Panelist: Alexander Stevenson, Managing Director, Lincoln International
With valuations volatile across both public and private markets, many companies – especially those strapped for cash – have been forced to take a look inward and decide if there are financial levers they can pull to stabilize their businesses. Whether selling off assets, chunks of equity or issuing debt, the market has shifted from a pre-covid seller’s market to a buyer’s market for those with the cash to do so. How are buyers assessing valuations amid the disruption? Have sellers’ expectations changes? With the increased risks in the current environment, what type of insurance and risk mitigation strategies are being established to protect parties within a deal form announcement to close? Does Covid-19 and its effects constitute an event that could trigger a Material Adverse Effect clause to terminate an agreement?
Moderator: Chris Nolter, Senior Writer, The Deal
Panelist: Brian Buchert, Vice President, Corporate Strategy and M&A, Church & Dwight
Panelist: Matthew Heinz, Co-Practice Leader/Senior Managing Director, Aon
Panelist: Todd Manning, Vice President, Corporate Development, American Express
Panelist: Paul Parker, Senior Vice President of Strategy and Corporate Development, Thermo Fisher Scientific
Companies – large and small, public and private – are under immense pressure from investors to assess and respond to ESG risks and opportunities for the benefit of all corporate stakeholders. Capital flight from industries and companies that are not ESG-friendly has forced board rooms around the world to begin to embrace ESG principles, even if they question the profitability of certain ESG initiatives. This panel will explore the corporate path to ESG success including establishing corporate ESG values at the top, setting strategic goals for ESG priorities, executing on the goals and properly incentivizing management to ensure success, and tracking ESG initiatives as key performance indicators and reporting ESG achievements.
Moderator: Eric Johnson, Partner, Winston & Strawn
Panelist: Christian Alejandro Asmar, Founding Partner, Impactive Capital
Panelist: Ray Cameron, Head of Investment Stewardship, BlackRock
Panelist: Benjamin Colton, Global Co-Head of Asset Stewardship, State Street Global Advisors
Panelist: Victoria Emerick, PhD, Global Head, Corporate Sustainability, Strategy and Operations, Bristol-Meyer Squibb
Panelist: Michael Hyun, Deputy General Counsel and Corporate Secretary, PSEG
Interviewer: Ron Orol, Senior Editor, The Deal
Interviewer: Steve Gelsi, Senior Reporter, The Deal
From novel vaccines and treatments to technology and sciences that change the way we live, the urgency for innovation is at an all-time high even as Covid-19 challenges have interrupted every aspect of the dealmaking process. Hospitals have been prompted to shift their priorities to clinical and operational effectiveness to maintain stability during the crisis, opening the door for disruptors offering innovative services such as telemedicine, virtual care and remote patient monitoring. This is creating more competition and new partnership opportunities. How do dealmakers continue to find innovative companies and get capital to those that need it most? How are industries such as healthcare and technology responding to the pandemic and positioning themselves to not only weather the storm but flourish throughout it? How are the current trends influencing healthcare M&A trends as we head into 2021, and what will activity look like in the longer term?
Moderator: Armie Lee, Writer, The Deal
Panelist: Elizabeth Mily, Executive Vice President, Strategy & Business Development, Bristol Myers Squibb
Panelist: Kevin Miller, Partner, McDermott Will & Emery
Panelist: Vipul Patel, Senior Vice President, Aon
Panelist: Rafael Torres, Senior Vice President, Strategy & Business Development, Varian Medical Systems Inc.
In light of the massive increase in the adoption of telehealth and telemedicine services amid the Covid-19 crisis, what’s next for the digital health sector? How would transactions such as Teladoc’s deal to acquire Livongo Health, the largest healthcare transaction so far this year, impact M&A and investment activity in the sector? Will valuations be affected? What businesses adjacent to telehealth and telemedicine are seeing increased attention from investors?
Moderator: Andrew Bab, Partner, Debevoise & Plimpton
Panelist: Matthew Evans, Managing Director & Head of Healthcare Finance, Monroe Capital LLC
Panelist: Jeff Rhodes, Partner, TPG Capital
Panelist: Robbert Vorhoff, Managing Director, Global Head of Healthcare, General Atlantic
Interviewer: Armie Lee, Writer, The Deal
Covid-19 has delayed, disrupted, and scuttled some deals in the healthcare industry, while opening opportunities, spurring, and necessitating other deals to be pursued as a matter of competitiveness or even survival. Changes and challenges vary across segments of the healthcare landscape—from physician practices, acute care hospital, and post-acute providers, to medical suppliers, pharmaceutical manufacturers, telehealth providers, and others. These changes affect how deals are negotiated, managed, and navigated through the corporate dealing and regulatory approval process, including antitrust approvals by federal and state antitrust authorities. This panel will explore the landscape and trends in corporate deal-making and how regulators are evaluating transactions in light of the pandemic. Will we see companies reshape negotiations, delay closings, and alter strategies as the pandemic impacts the merger process? And how might the result of the November election impact deal-making and antitrust enforcement?
Moderator: David Marcus, Senior Writer, The Deal
Panelist: Ge Bai, Associate Professor of Health Policy & Management, Johns Hopkins Bloomberg School of PPublic Health
Panelist: Nathan Bays, Director, Citi
Panelist: Alexis Gilman, Partner, Crowell & Moring
Panelist: Thomas Moriarty, Executive Vice President, Chief Policy and External Affairs Officer, and General Counsel, CVS Health
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Will the market start to see an increase in distressed M&A? While distressed transactions come with greater risks than “healthy” acquisitions, the benefits of lower costs and legal protections for the buyer could outweigh the risk.
ESG and Sustainability concerns are now playing a prominent role in how companies around the world operate, and how investors allocate their capital.