The 20th Annual Southeastern M&A/Private Equity Forum

Looking back can often offer insights into the future.  In this opening session, we welcome our distinguished co-chairs to reflect back on their own experiences in M&A, imparting valued lessons from their tenure in dealmaking.

Panelists:
Andrea Farley, Partner, Troutman Pepper Hamilton Sanders LLP
Michael E. Hollingsworth II, Partner, Nelson Mullins Riley & Scarborough LLP
Rahul Patel, Partner, King & Spalding LLP

As 2024 turned the corner, all signs pointed towards ‘onward and upward’ M&A momentum, moving activity out of the bear market of 2023. Optimists cheered decelerated inflation and reduced interest rates as evidence of an enhanced fiscal picture, but an improved financial market often makes financing more expensive to secure.  Now, with feet planted firmly in the year, where does deal activity stand and what changes in deal volume and sector sweet spots are dealmakers seeing this year?  Join us for our annual discussion of the current M&A landscape and forecast for the year ahead.

As robust valuations remain on record, private equity has been experiencing an increase of take-privates, add-on acquisitions and carve-outs deals.  Given both a squeezed and savvy market, PE firms are adding new attention on operational efficiencies and value creating processes aimed at driving profitability, as well as focusing on AI-enabled strategies to assist in identifying sound investment targets. How will these strategies inform PE activity in the year ahead? Do dealmakers expect valuations to remain high or will the market shift soon to allow for more buyout opportunities? This session will explore these and other critical questions for private equity in the current market.

With the wide-spread use of artificial intelligence, nefarious actors now have more powerful tools at their command.  Given that the health of a company’s cybersecurity posture is key to its valuation, what new considerations should dealmakers keep in mind as they undergo thorough cybersecurity due diligence of their potential targets? Where are the common vulnerabilities and how should one evaluate the history of incidents against the present-day cyber policies of the acquisition? How should dealmakers respond to the unforeseen issues beyond diligence? Join us for a session that explores the evolving nature and ever-present issues of cybersecurity in dealmaking.

There is a growing thread of public unease around private equity’s role in the economy. A burgeoning number of lawsuits have been brought forward, surveying PE’s role in alleged negligence of the products and services offered through their portfolio companies. Though not subject to the same requirements as banks, some are calling for sweeping regulatory changes for private equity. Are courts of public option enough to sway new action of regulators or within the courts themselves? If so, what can private equity do to insulate themselves from deal risk should it arise within a firm’s portfolio?

Porter’s Five Forces model notes that industries can experience large shifts in competitive market share from both the threat of new entrants and from substitute products/services. Staying ahead of potential shifts can yield big returns for dealmakers.  With new substitutes (i.e. plant-based food products), and new entrants (i.e. AI-driven services), making waves in the market, what should dealmakers be doing to take advantage of growing disruptors in the market or adversely, protecting their current holdings from risk? What other sectors do deal futurists expect to see market interrupters emerge in?  Join us as our faculty explore opportunities and threats in dealmaking within the disruptive edges of industry.