Skadden Arps Slate Meagher & Flom has emerged as Big Law’s top mergers and acquisitions (M&A) legal adviser in the first half of this year, driven by significant deals in the energy and health sectors. According to Bloomberg data, Skadden handled deals valued at $212.5 billion, followed by Latham & Watkins with nearly $192.7 billion in transactions, and last year’s leader Kirkland & Ellis with $172.8 billion. Skadden’s M&A partner and global head of transactions, Allison Schneirov, indicated that there is current momentum in the M&A market, with a trend of companies considering carve-out or spin-off transactions as a method to unlock value (Bloomberg Law).
The measured optimism is supported by a nearly 13% increase in global M&A transactions volume, reaching over $1 trillion in the first half of 2024 compared to the same period last year. David Klein, a corporate partner at Kirkland & Ellis, noted that the deals market appears robust, from his perspective, at a level unseen in recent years. However, it’s worth noting that mid-year deal volumes still lag over $300 billion behind the 10-year average, a point highlighted by Bloomberg News.
Energy deals, such as the $17 billion ConocoPhillips and Marathon Oil Corp. transaction, contributed significantly to the uptick in activity, though regulatory challenges in this sector remain a concern. Healthcare also saw substantial transactions, including Johnson & Johnson’s $13.1 billion acquisition of Shockwave Medical Inc. Despite high interest rates constraining full company takeovers, minority deals and structured investments remain viable alternatives for private equity firms.
Overall, while energy and healthcare have driven much of the activity, the trend towards increased M&A work appears to be industry-agnostic, as evidenced by commentary from Paul Kukish, chair of Latham’s private equity and investment funds group. The outlook for sustained M&A activity remains cautiously optimistic.