waves of transactions, the year 2023 is less impressive for LBOs. The geopolitical context (war in Ukraine) and the macroeconomic environment have had an impact on transactions. The financing market has slowed sharply due to high interest rates, which increased the cost of debt. Where it used to cost between 4 and 5%, it now costs between 8 and 10%. It is essentially the large-scale transactions that have disappeared from the landscape. For SMEs and ETIs, on the other hand, the picture is less bleak. However, the outlook remains bright. Despite the recent complications in the LBO market, investment funds have large sums of money to invest (the famous “dry powder”) and it is not in their interest to delay putting them to work. Furthermore, the need to pass on businesses is becoming a reality, one third of founders will be forced to hand over their business due to their retirement within the next five years. What are the top 5-10 issues in French mergers and acquisitions transactions both the target company and the acquiring company should consider when contemplating a transaction? 1) It goes without saying that they should be accompanied by specialist advisors in this field, to help the operation run smoothly. 2) It is important to identify sensitive issues at an early stage, to avoid the risk that an issue not identified at the negotiation stage will necessarily lead to a contentious outcome when it comes to light, after the change of ownership. 3) Guarantee the confidentiality of negotiations and business secrecy. 4) Anticipate, as it may have a significant impact on the calendar, any prior approval procedure before a public authority, due to notably foreign investment in sensitive activities, or anti-trust rules. 5) The sellers must ensure that the interests of their company and employees are protected during this kind of operation. 6) In order to avoid the failure of the transaction post-closing, a detailed anticipated planned integration must be implemented to avoid tensions with employees and customers. WWW.LAWYER-MONTHLY.COM 67 At BDO, we are increasingly using AI in our activities. AI is a beneficial tool in terms of saving time and, therefore, improving our productivity and responsiveness to our clients. About Ana I am a French Lawyer specializing in mergers and acquisitions and private equity transactions. I joined BDO Avocats, the Law Firm of BDO in France, after previously working for international Law Firms. BDO Avocats is a multidisciplinary law firm. It is a member of BDO, the world’s 5th largest network of audit, consulting, accounting, and social expertise firms, present in 162 countries. Our French Transaction Services team worked in 2023 on more than 100 deals, for corporate and private equity clients. I assist my clients in their external growth operations, as well as in their restructuring projects, both in France and abroad. I act as a privileged contact for my clients in the implementation of projects with a significant international dimension as I am fluent in English, French, Spanish and Portuguese. I advise companies in the negotiation and legal structuring of their financial needs, notably via fundraisings and leveraged buyouts, as well as in the identification and management of corporate governance risks. Finally, I am also involved in resolving shareholder disputes. www.bdoavocats.fr
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