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Year End 2008 Legal Advisors.Indd press release mergermarket Global M&A Round-up for Year End 2008 8 January 2009, for immediate release Contact: Hannah Bagshawe [email protected] Tel: +44 20 7059 6118 www.mergermarket.com mergermarket Global M&A Round-up Year End 2008 ‘Tumultuous fourth quarter emphasizes challenging year for dealmakers as M&A subsides’ What do dealmakers do in a year that has seen the worst fi nancial crisis since the Great Depression? Not much, as the numbers show. 2008 saw deal values and Contents volumes drop back to the level they were at three years ago with the credit crisis wreaking havoc on the fi nancial services industry. Section 1: M&A for Q408 hits 5-year lows; Asia-Pacifi c M&A overtakes North America for fi rst time The last quarter of 2008 saw plenty of M&A lows not seen for several years with 2,047 announced deals valued at $490bn globally – it was the worst quarter by p. 2 - 8: Global value since Q3 2004 ($343bn); and the worst fourth quarter since fi ve years ago by both value and volume (just over 2,000 deals valued at $367bn in Q4 2003). Section 2: North American deal values dipped a massive 67% compared to the previous quarter (from $302bn in Q3 to just under $100bn in Q4), leaving North American deal values less than the Asia-Pacifi c region for the fi rst time on record. p. 9- 20: Europe Section 3: Asia-Pacifi c sheltered but not immune; good Q4 but overall decreases for the full year In contrast, in the same quarter the Asia-Pacifi c region saw a 37% increase on the previous quarter’s $74bn worth of deals. The region also enjoyed more mid- p. 21- 29: Americas market ($10m-$250m) deal activity compared to North America showing 246 deals valued at $15.7bn compared to just 193 deals valued at $10.8bn in the US and Section 4: Canada. Despite these numbers, Asia-Pacifi c was not exempt from the global slowdown and the region saw deal values drop by 5.2% for the year, although this was the smallest drop of all the regions. p. 30 - 38: Asia-Pacifi c Global drop in M&A in 2008; Main drop in North America; Financial Services biggest sector Globally, a total value of $2.5tr represented a drop of 31% while volumes were down 20% on just over 12,000 deals. North America, which usually provides over p. 39. Criteria 40% of values globally (now less than 35%), saw the biggest overall decline from $1.5tr to $848bn, a drop of 44%. 2008 saw the Asia-Pacifi c region make up 16% p. 40 About mergermarket of total values, up from between 11-12% in the previous three years. Unsurprisingly fi nancial services, driven by the need to consolidate, was the busiest sector by value (25%), followed by Energy, Mining & Utilities which had a strong H1 but has withered away along with the price of crude. Industrials & Chemicals continues to be the most active sector. Europe meanwhile accounted for half of the top 10 deals announced globally, although only one actually had a target in the fi nancial services industry with the UK Treasury buying a 57.9% stake in RBS plc for $26bn. Linklaters top rankings for most regions Unlike 2007 where no single fi rm dominated any particular table, 2008 has been a year to remember for Linklaters as the fi rm ‘sweeps’ the value tables in all regions except for the US tables, although even here the fi rm has jumped an impressive 40 places to rank 11th for the year. Globally Linklaters advised on 267 transactions valued at $729bn. 2007’s top two, Sullivan & Cromwell and Skadden Arps Slate Meagher & Flom, drop to second and third with values of $612bn and $525bn, respectively. In volume terms DLA Piper worked on 304 deals, taking over top spot from Latham & Watkins who drop to fourth on 266 deals. Jones Day jumped six places to second on 294 deals. Freshfi elds suffered a slow year in the value of the deals worked on registering considerable drops in the European and Asian tables, despite actually ranking higher than the previous year in the global activity tables. DLA Piper had another strong performance in the mid-market tables, topping the global volume table and ranking second in the value table with 147 transactions valued at $10bn. Latham & Watkins took fi rst place on the global mid-market value table with 106 deals valued at $10.2bn, up from third in 2007. Press Release: mergermarket Global M&A Round-up forYear End 2008 2 www.mergermarket.com Global: League Tables of Legal Advisers League Table of Legal Advisers to Global M&A: Value League Table of Legal Advisers to Global M&A: Volume Y/E 2007 Y/E 2008 House Value Deal Count Y/E 2007 Y/E 2008 House Value Deal Count (US$m) (US$m) 4 1 Linklaters 728,566 267 2 1 DLA Piper 62,188 304 1 2 Sullivan & Cromwell 611,704 135 8 2 Jones Day 82,578 294 2 3 Skadden Arps Slate Meagher & Flom 526,419 187 4 3 Linklaters 728,566 267 6 4 Allen & Overy 514,627 228 1 4 Latham & Watkins 254,650 266 3 5 Freshfi elds Bruckhaus Deringer 444,130 257 6 5 Freshfi elds Bruckhaus Deringer 444,130 257 16 6 Herbert Smith/Gleiss Lutz/Stibbe 397,672 132 5 6 Baker & McKenzie 144,316 246 19 7 Cravath Swaine & Moore 377,789 58 3 7 Clifford Chance 354,958 244 40 8 McCarthy Tetrault 366,567 80 7 8 Allen & Overy 514,627 228 5 9 Clifford Chance 354,958 244 9 9 Skadden Arps Slate Meagher & 526,419 187 Flom 36 10 Slaughter and May 348,652 65 11 10 White & Case 84,596 174 12 11 Cleary Gottlieb Steen & Hamilton 327,398 160 10 11 Kirkland & Ellis 73,929 162 47 12 Davies Ward Phillips & Vineberg 281,494 41 13 12 Cleary Gottlieb Steen & Hamilton 327,398 160 13 13 Simpson Thacher & Bartlett 261,300 81 12 13 CMS 31,675 157 9 14 Latham & Watkins 254,650 266 15 14 Dewey & LeBoeuf 188,720 143 74 15 Lovells 254,111 87 14 15 Weil Gotshal & Manges 223,095 140 45 16 Freehills 233,721 78 16 16 Sullivan & Cromwell 611,704 135 49 17 Allens Arthur Robinson 233,206 37 17 17 Herbert Smith/Gleiss Lutz/Stibbe 397,672 132 32 18 Clayton Utz 226,777 43 21 18 Hogan & Hartson 44,750 119 11 19 Shearman & Sterling 226,661 114 23 19 Shearman & Sterling 226,661 114 8 20 Weil Gotshal & Manges 223,095 140 18 20 Blake, Cassels & Graydon 206,954 107 Press Release: mergermarket Global M&A Round-up forYear End 2008 3 www.mergermarket.com Global: League Tables of Legal Advisers League Table of Legal Advisers to Global Mid-Market M&A: Value League Table of Legal Advisers to Global Mid-Market M&A: Volume Y/E 2007 Y/E 2008 House Value Deal Count Y/E 2007 Y/E 2008 House Value Deal Count (US$m) (US$m) 3 1 Latham & Watkins 10,167 106 1 1 DLA Piper 10,013 147 2 2 DLA Piper 10,013 147 3 2 Latham & Watkins 10,167 106 7 3 Skadden Arps Slate Meagher & Flom 8,079 68 2 3 Baker & McKenzie 7,061 95 8 4 Jones Day 7,521 85 6 4 Jones Day 7,521 85 4 5 Baker & McKenzie 7,061 95 4 5 Linklaters 6,500 71 6 6 Freshfi elds Bruckhaus Deringer 6,890 70 9 6 Freshfi elds Bruckhaus Deringer 6,890 70 1 7 Linklaters 6,500 71 12 7 Skadden Arps Slate Meagher & 8,079 68 Flom 5 8 Clifford Chance 6,121 64 5 8 Clifford Chance 6,121 64 10 9 Allen & Overy 5,546 64 7 9 Allen & Overy 5,546 64 14 10 Weil Gotshal & Manges 5,270 50 8 10 Eversheds 3,277 60 16 11 Dewey & LeBoeuf 5,077 47 13 11 Kirkland & Ellis 5,076 58 11 12 Kirkland & Ellis 5,076 58 10 12 White & Case 4,903 56 9 13 White & Case 4,903 56 19 13 Hogan & Hartson 4,386 53 28 14 O'Melveny & Myers 4,444 48 11 14 CMS 3,262 51 25 15 Hogan & Hartson 4,386 53 17 15 Weil Gotshal & Manges 5,270 50 51 16 Sullivan & Cromwell 4,152 38 37 16 O'Melveny & Myers 4,444 48 36 17 Shearman & Sterling 3,968 32 20 17 Dewey & LeBoeuf 5,077 47 12 18 Cleary Gottlieb Steen & Hamilton 3,966 31 25 18 Wilson Sonsini Goodrich & Rosati 3,031 45 26 19 Mallesons Stephen Jaques 3,913 44 30 19 Mallesons Stephen Jaques 3,913 44 48 20 SJ Berwin 3,677 42 59 20 SJ Berwin 3,677 42 *Mid-Market based on deal value range of US$ 10m - US$ 250m Press Release: mergermarket Global M&A Round-up forYear End 2008 4 www.mergermarket.com Global: League Tables of Legal Advisers League Table of Legal Advisers to Global Buyouts: Value League Table of Legal Advisers to Global Buyouts: Volume Y/E 2007 Y/E 2008 House Value Deal Count Y/E 2007 Y/E 2008 House Value Deal Count (US$m) (US$m) 20 1 Linklaters 22,944 38 1 1 Kirkland & Ellis 9,877 75 8 2 Clifford Chance 22,558 42 6 2 DLA Piper 2,856 50 2 3 Weil Gotshal & Manges 16,673 33 3 3 Latham & Watkins 6,718 45 6 4 Freshfi elds Bruckhaus Deringer 16,346 21 2 4 Clifford Chance 22,558 42 1 5 Simpson Thacher & Bartlett 15,221 22 11 5 Jones Day 2,461 41 14 6 Sullivan & Cromwell 14,423 12 5 6 Linklaters 22,944 38 59 7 Slaughter and May 11,672 7 4 7 Weil Gotshal & Manges 16,673 33 55 8 Hengeler Mueller 11,611 6 14 8 White & Case 9,400 31 7 9 Debevoise & Plimpton 11,133 13 9 9 SJ Berwin 4,023 29 4 10 Cleary Gottlieb Steen & Hamilton 9,960 16 21 10 CMS 2,182 24 3 11 Kirkland & Ellis 9,877 75 10 11 Simpson Thacher & Bartlett 15,221 22 27 12 Freehills 9,662 10 8 12 Allen & Overy 9,541 22 10 13 Allen & Overy 9,541 22 7 13 Freshfi elds Bruckhaus Deringer 16,346 21 47 14 White & Case 9,400 31 12 14 Baker & McKenzie 4,665 20 172 15 Poellath & Partners 8,966 12 27 15 Ropes & Gray 7,942 19 43 16 Ropes & Gray 7,942 19 15 16 Skadden Arps Slate Meagher & 5,746 17 63 17 Hogan & Hartson 7,067 16 Flom 115 18 Blake Dawson 7,007 1 41 17 Vinge 5,207 17 5 19 Latham & Watkins 6,718 45 19 18 Cleary Gottlieb Steen & Hamilton 9,960 16 15 20 Mallesons Stephen Jaques 6,131 6 46 19 Hogan & Hartson 7,067 16 *Based on law fi rm advising the bidder party only 16 20 Herbert Smith/Gleiss Lutz/Stibbe 3,700 16 Press Release: mergermarket Global M&A Round-up forYear End 2008 5 www.mergermarket.com Global: Top Announced Deals 2008 Top 10 Announced Global Deals 2008 (*denotes
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