Let's talk asset management M&A: Episode 4: Due diligence and regulatory issues
Video Details
In the fourth episode of our asset management M&A vodcast series, Richard Sheen and Clementine Hogarth, partners in our London Financial Institutions team are again joined by Giota Skiathiti, a regulatory lawyer in our Financial Institutions team, to explore the role of due diligence and regulatory considerations in shaping successful transactions.
Richard, Clementine and Giota give an overview of the various diligence streams that precede deal signing. These include financial assessments of historical and forecast performance, tax evaluations across jurisdictions, and operational aspects. Legal diligence focuses on investment management agreements, group structures, and key personnel - highlighting the importance of understanding contract value and potential risks tied to termination or change of control.
This episode also addresses the complexity of regulatory diligence, especially when banks or investment firms are involved. Giota introduces the concept of reverse due diligence, where target companies assess the buyer, with a particular focus on financial capability and regulatory compliance. The conversation also touches on emerging legal developments which can impact transactions.
The episode concludes with insights into pre-deal restructuring, which is often necessary to align group structures or carve out assets. Regulatory approvals and third-party consents can complicate timing, making early legal involvement essential.
This session offers a practical look at the diligence and regulatory landscape in asset management M&A, highlighting the need for early engagement, thorough analysis, and strategic structuring to ensure smooth execution and long-term compliance.
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