In a Q&A with Texas Lawbook, Corporate Partner Wade Glover discussed the increased volume of mergers and acquisitions the middle market has seen over the past two years.
Wade explained how the pandemic impacted bankruptcy sales in particular, creating unique negotiation points and tactics. This was especially the case when Wade and Katten’s Bankruptcy group advised Aurify Brands on the acquisition of the assets of two separate restaurant brands out of bankruptcy.
With deals happening at a fast clip, Wade explained how the activity is playing out in the middle market.
“Everyone is busy – the clients are busy, accountants are busy, representation and warranty insurance providers (and their counsel) are busy. Volume is high and pace is fast,” Wade said. “Those engaged in these deals have to know what matters and focus on getting the right terms for the right reasons.”
Wade also discussed transactions trends, namely that “public company style” sell-side deals are becoming more common.
In the private equity space, Wade said he’s watching the reliance on representation and warranty insurance policies as premiums increase and underwriters become selective.
“To be clear, I do not see this as a pending demise of the R&W Insurance industry, but I am interested to see if buyers start to think twice about whether a R&W policy is the right way to go for every transaction,” Wade said.
“Q&A with Katten Dealmaker Wade Glover,” Texas Lawbook, November 5, 2021
Dallas
