While M&A activities suffered a slowdown in 2020, after mega deals dominated 2019, 2021 and into 2022 represents a new landscape. What are key considerations for those considering M&A in the current market?

• Know your counter-party and competitors: from SPACs to private equity funds, knowing who your counter-party is and what their key drivers are is critical
• Speed of execution: in this hotly contested market, being able to deliver deal certainty and fast can be a real competitive advantage
• Outsourcing of risk: a significant amount of “sell side risk” is now being backed out to insurance or other parties, or is simply being negotiated away. Forewarned is forearmed as a buyer
• Limiting tail end responsibility: particularly on carve-out or product divestments, TSA periods and the underlying periods are getting shorter and less all inclusive
• Impact of FDI risks: national governments are keeping a more watchful eye over the life sciences sectors post-pandemic, both to preserve domestic capacity but also to ensure that potentially anti-competitive deals don’t get missed

Robbie McLaren, Partner Healthcare & Life Sciences Group, Latham & Watkins

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