1. Institutional shareholders and boards will be in tension over strategic alternatives in 2023 due to the high prices of shares acquired in recent years.
2. Leveraged acquisition playbooks for 2023 will involve herding numerous direct lenders into leverage packages and negotiating supplemental equity commitments from the Middle East and sovereign wealth funds.
3. Outmaneuvering antitrust regulators in 2023 will require special focus on CFIUS and making sure that entities signing commitments are not unfunded vehicles.
The article provides a detailed overview of M&A predictions and guidance for 2023, focusing on the tension between institutional shareholders and boards about strategic alternatives, the commodification of private equity, reliance on direct lenders and equity commitments from the Middle East and sovereign wealth funds, as well as outmaneuvering antitrust regulators in 2023. The article is written by Ethan Klingsberg, a Partner at Freshfields Bruckhaus Deringer LLP, which adds to its trustworthiness as it is based on his professional experience. The article does not appear to have any biases or one-sided reporting; it presents both sides equally by providing an overview of potential tensions between boards and their institutional shareholders over strategic alternatives, as well as outlining strategies for leveraging acquisitions in 2023. Furthermore, the article provides evidence for its claims by citing Delaware Chancery decisions and referencing shareholder engagement tactics such as “thinking like activists” or being more transparent about longer term targets.
The only potential issue with this article is that it does not explore counterarguments or present any risks associated with its predictions or guidance for 2023. It would be beneficial if the author had included some counterarguments or explored possible risks associated with these strategies so readers could make more informed decisions when considering M&A activity in 2023.