2015 Checklist for SuccessfulAcquisi
- 發佈時間:2015-04-15 18:29:31 來源:國際商報 責任編輯:羅伯特
byWachtel,Lipton,Rosen&Katz(NewYork)andKing&WoodMalesons(Beijing)
MergersandAcquisitions(M&A)wasrobustin2014,hittingseveralnoteworthypost-crisishigh-watermarks:totalglobalvolumereachedUS$3.5trillion,cross-bordervolumereachedUS$1.3trillion(37%ofthetotal)andcross-borderM&AinvolvingU.S.companiesreachedUS$770billion(45%ofwhichwasincoming).AcquirersfromGermany,France,Canada,JapanandtheUnitedKingdomaccountedfor67%oftheincomingacquisitionsintotheU.S.,andacquirersfromChina,Indiaandotheremergingeconomiesaccountedforapproximately7%.Cross-borderdealsannouncedin2014includedsomeoftheyear’slargest,includingmanyaboveUS$10billionandanumberofrealblockbusters.
Weexpectcurrenttrendstocontinueinto2015,driven,inseveralkeyregions,bystrongcorporateearnings,largecorporatecashbalancesinsearchofyield,continuedavailabilityofhighlyattractivefinancingtowell-capitalizedborrowersandgenerallyhighstockprices.Afocusonindustryconsolidationinanumberofsectorsandathirstfortechnologyandbrandsingrowingeconomiessimilarlyareexpectedtocontinuetomotivatecross-borderdeals.
Eveninaworldthatisincreasinglyfracturedbyinternationaltensionsandprofounddisagreementsonpoliticsandpolicy,oftenviolentlyso,U.S.dealmarketscontinuetoberelativelyhospitabletooffshoreacquirersandinvestors.Withcarefuladvancepreparation,strategicimplementationandsophisticateddealstructuresthatanticipatelikelyconcerns,mostacquisitionsintheU.S.canbesuccessfullyachieved.Cross-borderdealsinvolvinginvestmentintotheU.S.aremorelikelytofailbecauseofpoorplanningandexecutionthanfundamentallegalorpoliticalrestrictions.
ThefollowingisourupdatedchecklistofissuesthatshouldbecarefullyconsideredinadvanceofanacquisitionorstrategicinvestmentintheU.S.Becauseeachcross-borderdealisunique,therelativesignificanceoftheissuesdiscussedbelowwilldependuponthespecificfacts,circumstancesanddynamicsofeachparticularsituation:
PoliticalandRegulatoryConsiderations.
Prospectivenon-U.S.acquirersofU.S.businessesorassetsshouldundertakeathoughtfulanalysisofU.S.politicalandregulatoryimplicationswellinadvanceofanyacquisitionproposalorprogram,particularlyifthetargetcompanyoperatesinasensitiveindustryoriftheacquirerissponsoredorfinancedbyaforeigngovernment,ororganizedinajurisdictionwhereahighlevelofgovernmentinvolvementinbusinessisgenerallyunderstoodtoexist.Itisimperativethatthelikelyconcernsoffederal,stateandlocalgovernmentagencies,employees,customers,suppliers,communitiesandotherinterestedpartiesbethoroughlyconsideredand,ifpossible,addressedpriortoanyacquisitionorinvestmentproposalbecomingpublic.Itisalsoessentialthatacomprehensivecommunicationsplanbeinplacepriortotheannouncementofatransactionsothatalloftherelevantconstituenciescanbeaddressedwiththeappropriatemessages.Itwilloftenbeuseful,ifnotessential,toinvolvelocalpublicrelationsfirmsatanearlystageintheplanningprocess.
TransactionStructures.Structuresthatmaybehelpfulinsensitivesituationsincludeno-governanceandlow-governanceinvestments,minoritypositionsorjointventures,possiblywiththerighttoincreaseownershiporgovernanceovertime;partneringwithaU.S.companyormanagementorcollaboratingwithaU.S.sourceoffinancingorco-investor(suchasaprivateequityfirm);orutilizingacontrolledorpartlycontrolledU.S.acquisitionvehicle,possiblywithaboardofdirectorshavingasubstantialnumberofU.S.citizensandaprominentU.S.citizenasanon-executivechairman.Useofpreferredsecurities(ratherthanordinarycommonstock)orstructureddebtsecuritiesshouldalsobeconsidered.
CommitteeonForeignInvestmentintheU.S.(CFIUS).UndercurrentU.S.federallaw,CFIUS—amulti-agencygovernmentalbodychairedbytheSecretaryoftheTreasury,andtherecommendationsofwhichthePresidentoftheUnitedStateshaspersonalauthoritytoacceptorreject—hasdiscretiontoreviewtransactionsinwhichnon-U.S.acquirerscouldobtain“control”ofaU.S.businessorinwhichanon-U.S.acquirerinvestsinU.S.infrastructure,technologyorenergyassets.ThreeusefulrulesofthumbindealingwithCFIUSare:
First,ingeneralitisprudenttomakeavoluntaryfilingwithCFIUSifthelikelihoodofaninvestigationisreasonablyhighorifcompetingbiddersarelikelytotakeadvantageoftheuncertaintyofapotentialinvestigation;
Second,itisoftenbesttotaketheinitiativeandsuggestmethodsofmitigationearlyinthereviewprocessinordertohelpshapeanyremedialmeasuresandavoiddelayorpotentialdisapproval;
Third,RetainingadvisorswithsignificantCFIUSexpertiseandexperienceisoftencrucialtosuccessfulnavigationoftheCFIUSprocess.TransactionsthatmayrequireaCFIUSfilingshouldhaveacarefullycraftedcommunicationsplaninplacepriortoanypublicannouncementordisclosureofthependingtransactions.
AcquisitionCurrency.Whilecashremainsthepredominant(althoughnotexclusive)formofconsiderationincross-borderdeals,non-U.S.acquirersshouldthinkcreativelyaboutpotentialavenuesforofferingU.S.targetshareholdersasecuritythatallowsthemtoparticipateintheresultingglobalenterprise.Forexample,publiclylistedacquirersmayconsiderofferingexistingcommonstockordepositaryreceipts(g.,ADRs)orspecialsecurities(e.g.,contingentvaluerights).
M&APractice.ItisessentialtounderstandthecustomandpracticeofU.S.M&Atransactions.Forinstance,understandingwhentorespect—andwhentochallenge—atarget’ssale“process”maybecritical.Knowinghowandatwhatpriceleveltoenterthediscussionswilloftendeterminethesuccessorfailureofaproposal;insomesituationsitisprudenttostartwithanofferonthelowside,whileinothersituationsofferingafullpriceattheoutsetmaybeessentialtoachievinganegotiateddealanddiscouragingcompetitors.Sensitivitymustalsobegiventothedistinctcontoursofthetargetboard’sfiduciarydutiesanddecision-makingobligationsunderU.S.law.
U.S.BoardPracticeandCustom.IfthetargetisaU.S.publiccompany,theNon-U.S.participantsneedtobewell-advisedastotheroleofU.S.publiccompanyboardsandthelegal,regulatoryandlitigationframeworkandrisksthatcanconstrainorprescribeboardaction.ThesefactorscanimpactbothtacticsandtimingofM&Aprocessesandthenatureofcommunicationswiththetargetcompany.
Financing.Volatilityintheglobalcreditmarketsin2014wasmorepronouncedthanintheimmediatepast,whichresultedinmorefrequentclosingsofthe“windows”inwhichparticularsortsoffinancingareavailable,particularlyfornon-investmentgradeissuers.Whilethevolumeoffinancingandtheratesatwhichfinancinghasbeenavailableforinvestmentgradeissuerscontinuestobefavorableandhasfacilitatedacquisitions,adivergencehasemergedforhigh-yieldissuerslookingforacquisitionfinancing,wheretheavailabilityofcommittedfinancing,particularlyfordealsrequiringalongclosingperiodorasubstantialamountoffinancing,hasbecomeconstrainedandmorecostly.Thishasresultedinpartfromactivitiesofregulatorsworldwide,andparticularlyintheU.S.,toreducefinancingactivityforhighlyleverageddeals–atrendthatmaycontinueforsometime.Importantquestionstoconsiderwhenfinancingatransactionincludewherefinancingwiththemostfavorabletermsandconditionsisavailable;howcommittedthefinancingis;whichlendershavethebestunderstandingoftheacquirer’sandtarget’sbusinesses;whethertoexplorealternative,non-traditionalfinancingsourcesandstructures,includingsellerpaper;whethertherearetransactionstructuresthatcanminimizerefinancingrequirements;andhowcomfortablethetargetwillfeelwiththetermsandconditionsofthefinancing.
Litigation.Excludingthecontextofcompetingbidsinwhichlitigationplaysaroleinthecontest,andofgoing-privatetransactionsinitiatedbycontrollingshareholdersormanagement,whichformaseparatecategoryrequiringspecialcareandplanning.Inallcases,theacquirer,itsdirectors,shareholdersandoffshorereportersandregulatorsshouldbeconditionedinadvance(totheextentpossible)toexpectlitigationandnottoviewitasasignoftrouble.Inaddition,itisimportanttounderstandtheU.S.discoveryprocessinlitigationasitissignificantlydifferentthantheprocessinotherjurisdictionsand,eveninthecontextofasettlement,willrequiretheacquirertoprovideresponsiveinformationanddocuments(includingemails)totheplaintiffs.
TaxConsiderations.Non-U.S.acquirersfrequentlywillneedtoconsiderwhethertoinvestdirectlyfromtheirhomejurisdictionorthroughU.S.ornon-U.S.subsidiaries,theimpactofthetransactionontaxattributesoftheU.S.target(e.g.,losscarryforwards),thedeductibilityofinterestexpenseincurredonacquisitionindebtedness,andeligibilityforreducedratesofwithholdingoncross-borderpaymentsofinterest,dividendsandroyaltiesunderapplicableU.S.taxtreaties.BecausetheU.S.doesnothavea“participationexemption”regimethatexemptsdividendincomefromnon-U.S.subsidiaries,anon-U.S.acquirerofaU.S.targetwithnon-U.S.subsidiariesmaywishtoanalyzethetaxcostofextractingsuchsubsidiariesfromtheU.S.group.
DisclosureObligations.Howandwhenanacquirer’sinterestinthetargetispubliclydisclosedshouldbecarefullycontrolledandconsidered,keepinginmindthevariousownershipthresholdsthattriggermandatorydisclosureonaSchedule13DunderthefederalsecuritieslawsandunderregulatoryagencyrulessuchasthoseoftheFederalReserveBoard,theFederalEnergyRegulatoryCommission(FERC)andtheFederalCommunicationsCommission(FCC).WhiletheHart-Scott-RodinoAntitrustImprovementsAct(HSR)doesnotrequiredisclosuretothegeneralpublic,theHSRrulesdorequiredisclosuretothetarget’smanagementbeforerelativelylowownershipthresholdscanbecrossed.Non-U.S.acquirershavetobemindfulofdisclosurenormsandtimingrequirementsrelatingtohomecountryrequirementswithrespecttocross-borderinvestmentandacquisitionactivity.
ShareholderApproval.BecausefewU.S.publiccompanieshaveoneormorecontrollingshareholders,obtainingpublicshareholderapprovalistypicallyakeyconsiderationinU.S.transactions.Understandinginadvancetherolesofarbitrageurs,hedgefunds,institutionalinvestors,privateequityfunds,proxyvotingadvisorsandotherimportantmarketplayers—andtheirlikelyviewsoftheanticipatedacquisitionattemptaswellaswhentheyappearanddisappearfromthescene—canbepivotaltothesuccessorfailureofthetransaction.
IntegrationPlanning.Oneofthereasonsdealssometimesfailispoorpost-acquisitionintegration,particularlyincross-borderdealswheremultiplecultures,languagesandhistoricbusinessmethodsmaycreatefriction.Ifpossible,theexecutivesandconsultantswhowillberesponsibleforintegrationshouldbeinvolvedintheearlystagesofthedealsothattheycanhelpformulateand“own”theplansthattheywillbeexpectedtoexecute.
CorporateGovernanceandSecuritiesLaw.U.S.securitiesandcorporategovernancerulescanbetroublesomefornon-U.S.acquirerswhowillbeissuingsecuritiesthatwillbecomepubliclytradedintheU.S.asaresultofanacquisition.SECrules,theSarbanes-OxleyandDodd-FrankActsandstockexchangerequirementsshouldbeevaluatedtoensurecompatibilitywithhomecountryrulesandtobecertainthatthenon-U.S.acquirerwillbeabletocomply.Rulesrelatingtodirectorindependence,internalcontrolreportsandloanstoofficersanddirectors,amongothers,canfrequentlyraiseissuesfornon-U.S.companieslistingintheU.S..Non-U.S.acquirersshouldalsobemindfulthatU.S.securitiesregulationsmayapplytoacquisitionsandotherbusinesscombinationactivitiesinvolvingnon-U.S.companieswithU.S.securityholders.
AntitrustIssues.Totheextentthatanon-U.S.acquirerdirectlyorindirectlycompetesorholdsaninterestinacompanythatcompetesinthesameindustryasthetargetcompany,antitrustconcernsmayariseeitheratthefederalagencyorstateattorneysgenerallevel.Althoughlesstypical,concernscanalsoariseiftheforeignacquirercompeteseitherinanupstreamordownstreammarketofthetarget.Asnotedabove,pre-closingintegrationeffortsshouldalsobeconductedwithsensitivitytoantitrustrequirementsthatcanbelimiting.Homecountrycompetitionlawsmayraisetheirownsetsofissuesthatshouldbecarefullyanalyzedwithcounsel.TheadministrationoftheantitrustlawsintheU.S.iscarriedoutbyhighlyprofessionalagenciesrelyingonwell-establishedanalyticalframeworks.Theoutcomesofthevastmajorityoftransactionscanbeeasilypredicted.
DueDiligence.Duediligencemethodsmusttakeaccountofthetargetjurisdiction’slegalregimeand,particularlyimportantinacompetitiveauctionsituation,localnorms.Manyduediligencerequestsarebestchanneledthroughlegalorfinancialintermediariesasopposedtobeingmadedirectlytothetargetcompany.Makingduediligencerequeststhatappeartothetargetasparticularlyunusualorunreasonable(notuncommonincross-borderdeals)caneasilycauseabiddertolosecredibility.Similarly,missingasignificantlocalissueforlackoflocalknowledgecanbehighlyproblematicandcostly.
Collaboration.Mostobstaclestoadealarebestaddressedinpartnershipwithlocalplayerswhoseinterestsarealignedwiththoseoftheacquirer.Ifpossible,relationshipswiththetargetcompany’smanagementandotherlocalforcesshouldbeestablishedwellinadvancesothatpoliticalandotherconcernscanbeaddressedtogether,andsothatallpoliticians,regulatorsandotherstakeholderscanbeapproachedbythewholegroupinaconsistent,collaborativeandcooperativefashion.
(Contributedby:AdamO.EmmerichandRobinPanovka,Wachtel,Lipton,Rosen&Katz(NewYork)andKaidingWang,GangJingandLianghuaWangofKing&WoodMalesons(Beijing))