This post is by Peter Atkins of Skadden, Arps, Slate, Meagher & Flom LLP.
My firm has recently published “2009 Insights — Navigating Tumultuous Times,” a compendium of current memoranda on subjects we believe are likely to be of particular importance to directors, senior management and counsel in the coming year. The idea for the compendium was triggered by the difficult financial and business environments in the U.S. and globally as we move into 2009, and the advent of a new administration in Washington. In light of this, we thought there could be some real value in pulling together input from a large number of our practice areas and domestic and international offices to provide, in one place early in 2009, our perspective on the coming year. This perspective encompasses both problem areas, including approaches to dealing with them, and some opportunities.
The individual memoranda are intentionally brief, to facilitate review by business executives and directors — there clearly is much more to be said on virtually every subject. The following outline, from the compendium itself, indicates the breadth of territory covered in the 10 sections of the compendium.
• Capital Markets and Hedge and Private Equity Funds: For many of our clients, the area of most direct interest is how the tumultuous financial environment may impact their capital structure. We emphasize both advance planning and prophylactic measures that are applicable to most entities, whether or not currently under distress. We also examine potential opportunities created by the turmoil in financial markets and the impact on various capital markets sectors.
• Corporate Restructuring: It is generally expected that 2009 will be dominated by a global wave of corporate restructuring activity. We provide information on various techniques that will be of assistance to stressed entities looking to restructure their balance sheets, as well as entities that may seek to acquire or consolidate with a troubled entity.
• Financial Institutions: The events of recent months have led to a series of financial crises and dramatic governmental responses. We examine legislative developments in the US and Europe, provide guidance regarding the current enforcement and litigation landscape, and look ahead to future developments affecting financial institutions.
• Global M&A: A significant amount of recent merger and acquisition activity has focused on restructuring prompted by the demands of governments or creditors. As corporations around the world continue to assess their financial and business environments, new strategic M&A scenarios likely will develop. We include information highlighting current influences on mergers and acquisitions.
• Governance: The financial and economic crises and the response of various governmental bodies, once again, emphasize the importance of proper corporate governance. The range of issues confronting directors and members of management are explored in a series of memoranda that assess trends and offer guidance on those issues, including directors’ duties, executive compensation and financial reporting.
• Governmental, Regulatory and Tax Enforcement: In the US, the EU and elsewhere, shifting governmental priorities in response to various factors, including the economic environment, will impact a wide range of industries. We assess these developments across governmental arenas.
• Intellectual Property and Information Technology: We address a number of areas of interest related to intellectual property — the most valuable asset of the so-called “new economy.”
• Litigation and International Arbitration: We anticipate the upheavals of the last year and a half will continue to result in increased litigation, much of which will be complex and international in nature. We discuss the expected trends and likely strategies for managing such disputes.
• New Markets: Brazil, China, India and Russia are not immune to the global financial and economic crisis, and their status as emerging markets creates unique circumstances for conducting business there. We discuss various issues, trends and laws relevant to business activity in each country.
• Real Estate: In the eye of the economic storm, the real estate industry, including REITs, faces a number of issues, which we discuss here.
The compendium is available here.
Note: Navigating tumultuous times requires keeping up to date. In the brief period since the compendium was issued, there have been significant changes in a number of areas, particularly U.S. economic stimulus legislation, regulation of financial institutions and executive compensation. We continue to monitor the areas covered in the compendium and publish memoranda addressing significant developments.
