State of the market

The high M&A activity last year pushed Australia to the forefront of global rankings, such that it was ordained as Asia-Pacific's "most acquisitive nation in 2007".

The result of the credit crunch this year, however, has been a relatively slower period. New Zealand has seen M&A deal values almost halved. Analysts say that this is not simply a local phenomenon - the overall value and volume of deals have decreased globally, and the rate is stable and consistent with levels prior to the 2007 boom. It is expected that levels will pick up in the near future, with growing demand from shareholders pushing forward business activity. Recent reports show that deals executed during slower periods of growth are twice as likely to produce returns of more than 50%.

The energy and mining industry continues its reign in this practice area, with almost 35% of deals emerging from the sector. Chinese and Indian demand for Australia's mining and energy resources will keep commodity prices high and resource companies desirable.

According to a source, "the next 12 months we'll be seeing resources gaining momentum - there is a lot of demand for commodities like zinc and nickel and cost becomes important. Businesses need to engage in M&A to get bigger and reduce costs. Overall we'll see that happening in the mid market, mostly through friendly mergers."

Other emerging markets include insurance, banking and the health industry. "People have been talking about insurance and consolidation for some time," our source notes. And the industry regulator says we should be anticipating more activity in the health industry. This advice follows some recent, large-value deals including the Bupa-MBF and Medibank-AHM acquisitions.

Where is the money coming from? Some predict it's beyond the commonly cited Indian and Chinese markets. "The interest in Australian companies is broader than those emerging markets," says our source. "There is quite a lot of investment still coming in from the US, UK and Europe. Canada is also a significant source of resources."

SYDNEY

The renowned team at Gilbert + Tobin were consistently noted for their strong industry presence, with sources stating they provided tough competition from their local Sydney base. Clients agreed; one hailed them as "one of the best firms I've worked with" while another felt "no hesitation in recommending the team, especially Gary Lawler and Phil Breden". Lawler was also commended by several competitors, with one outlining his "strong track record". Fellow partner Gary Besson was also mentioned by a client for his "resolve in getting results".

Another firm turning heads is Dibbs Abbott Stillman, which has become a contender with the big league players by expanding its number of large transactions over the year. The firm has "a level of service which is exceptional," said one client. "They provided sound and kindly legal advice and are highly recommended in relation to supporting any company looking to expand." Partner Paul Schmidt-Uili was described by one client as "instrumental for our company, especially his work in capital raising to assist our acquisition". Peter Surgeon was said to be "very competent and certainly provides good M&A services. He knows his stuff and was a pleasure to work with." Private equity specialist John Reen's "depth of knowledge and excellent advice" was able to "add significant value to facilitate and assist in our acquisitions," noted a client. Rob Sauer was seen to have "a wealth of experience, and provided highly cost-efficient advice".

Boutique firm Addisons Commercial Lawyers is steadily making its presence felt in the market. It was the favourite firm of one client, who commended Addisons' efforts to familiarise itself with their operations: "They've established a long association with us." Michael Ryan was praised as a "very experienced lawyer, efficient and practical". Another client said that the team, including, peer-recommended lawyers David Blackburn and Jeff Mansfield, aided on a deal that "allowed us to raise our market profile".

Chang Pistilli & Simmons was lauded for having a "very focused team of individuals". Highly active in the mining and resources sector, the relatively new firm has been well regarded by industry peers and longstanding clients, with one general counsel stating they "would happily recommend them as one of the top firms". Although founding partner Diana Chang is known more for her commercial litigation experience, her recent appointment to the Takeovers Panel demonstrated her corporate portfolio to peers. Fellow founding partner Mark Pistilli has furthered the number of cross-border transactions over the years, no doubt seeking to develop what several clients noted as "a very good relationship". Richard Graham was also mentioned by peers for his advisory work on high-profile deals including the Brookfield-Multiplex and PBL Media acquisitions.

MELBOURNE

Although a national firm, the Melbourne team at Deacons were held in particularly high regard, with peers citing their representation on the world's first hostile takeover by a Chinese company, Sinosteel for Midwest, as a major deal of the year. The firm's cross-border M&A work with China has doubled over the past 12 months. With half of the M&A revenue coming from deals with Chinese state-owned enterprises, most of the activity has taken place in the resources sector. Peers noted that partner Ian McCubbin's two decades of corporate advisory experience has had a hand in building strong relations with Chinese companies over the years. Micheal Wilton also garnered the recognition of clients, who commended his "practical and innovative approach to resolving issues".

There was no other way to say it: "Arnold Bloch Leibler really are a class act," noted a client. "We've found that they tick every box that you would expect of a top-tier firm." Clients recommended Ross Paterson for his "good business acumen", which has been perfected over the years by the variety of deals he's overseen. Jonathan wenig "provides concise and timely legal analysis and advice. He is adept in finding solutions to issues, is easy to contact, very responsive to messages and provides a very prompt and efficient turnaround on all matters he is instructed on. We would evaluate his performance as being first class." The firm was also appreciated for possessing "'black letter' technical expertise, around-the-clock availability and quality resources". Managing partner Henry Lanzer is "outstanding in his team leadership, breadth of legal knowledge, commercial insights and contacts". Steven klein was mentioned for being "excellent in relation to highly technical matters" along with Jane Sheridan who "is also excellent in relation to regulatory issues".

BRISBANE

In the sunshine state, boutique firm Carter Newell clearly stood out for several clients. According to sources, the firm was "efficient, timely, and commercial". Others were keen to mention the firm's "good value and good quality advice", while some noted that "they are obviously sophisticated and commercially focused, and very efficient". Partner Cameron Jorss was regarded for his "professionalism and commitment". His teamwork with Jonathan Cheyne was highly commended by one client who noted "they work very well together; their turnaround is timely".

Efficiency was also a factor for clients who praised HopgoodGanim. The firm was said to possess a "dedicated and highly responsive team" who "worked efficiently to finish the transaction on time," according to one client. Partner Brian Moller was referred to as "a very experienced and very thoughtful lawyer who grasps issues quickly and gives commercial advice in a timely manner". Another client noted, "HopgoodGanim is a very proactive and customer-focused firm, which I find is refreshing and somewhat unique." The firm has garnered many fans. One relatively new client stated that the firm "supported us in several successful transactions" while a more seasoned industry client stated, "I am more than pleased with the support they provide. They have a very strong client focus, first-rate legal advice and, most importantly, an understanding of what we are seeking to achieve commercially."

Partner Michele Muscillo was praised as "highly sought after, very valuable to the firm". Michael Hansel "does a tremendous job" and Richard Hanel "always makes sure every I is dotted and every T is crossed".

PERTH

According to industry peers, Jackson McDonald is a solid contender in the mining and resources-rich state. Clients spoke of the firm's "creative approach" as well as its "exceptional service delivery". The firm was said to "understand our requirements perfectly and provided appropriate advice and assistance".

However, the most glowing review was given by a longstanding client of the firm: "What really sets them apart is quality, a strong understanding of business and knowing their client's objectives." Partner Stephen Doyle has secured the firm a large piece of the M&A pie in WA, with some notable representative roles from the mining and banking sector.

Blakiston & Crabb was also noted by peers for its extensive experience in the resources-rich state. As well as being highly active in the industry, its representation on the Takeovers Panel has certainly created a buzz. The firm was regarded for its strong working relationships with clients and for possessing "a commercial outlook that delivers".

NATIONAL FIRMS

Having recently celebrated its 175th anniversary, it was not surprising that one client named Clayton Utz as a "firm of pre-eminence" for its renowned experience and status within the industry. The firm continues to step up its game with high-value, high-profile deals, including joint ventures and billion-dollar mergers, and is noted for its large number of cross-border transactions across the United States, Asia and Africa.

Peers acknowledged the "strong practice group", citing the group head, Rodney Halstead, as a clear leader in the M&A legal field. Clients appreciated the firm's "understanding and strategic approach". Partner John Elliot was also singled out for mention.

Topping the early rankings in both value and volume, pacesetter Allens Arthur Robinson has also stood out strongly in the opinions of both peers and clients. The firm commanded a 7.9% market share in deals that totalled an impressive $354bn. These findings were echoed by its clients, most of whom agreed that the firm is "by far a leader in this area [M&A]". Clients commended the firm for possessing a "high reputation", making headlines in a record-breaking year with the Rio Tinto-BHP, Coles-Wesfarmers, and St.George-Westpac deals.

Sydney-based co-head partner and ALB leading lawyer Ewen Crouch was mentioned as "an outstanding lawyer who has considerable experience", while Guy alexander continues to build on his "excellent skills", recently advising Multiplex on its acquisition by Brookfield.

Hot on the heels of Allens was Freehills, with 45 deals under its belt for a combined total of $216bn. The firm's involvement in high-profile transactions (notably BHP-Rio Tinto) pushed it into the major league and delivered it a ranking of 11th globally by deal value.

Clients are obviously very happy with the service they are recieving from Freehills, with one organisation describing the firm as having a "brilliant track record in transactions of this nature [mergers]". Another stated that the firm is "very attentive and responsive to needs - they actively seek to meet their clients' commercial outcomes".

ALB's 2007 dealmaker of the year, Phillipa Stone, was often mentioned by peers as a leading individual in the field. Longstanding clients stated that "we have a good relationship with the firm, and it's been always an excellent experience". This was added to by another client, who emphasised the "considerate" Martin Shakinovsky's 25 years of experience, noting that "he is our key guy". Rodd Levy and Fiona Smedley were peer commended as "top-tier lawyers", while clients said that they were an "excellent team". Richard Loveridge, Peter Dunne and Amy Goble also received plaudits. The team was described by one client as "extremely dedicated, capable and commercial".

With transaction experience that stretches across the Asia-Pacific, UK and Europe, Minter Ellison clients stated that the firm "provides excellent legal advice" and appreciated its "innovative approach to handling tight situations". John Steven, head of the corporate division, was mentioned for his "outstanding professionalism", while partner Costas Condoleon, who has reportedly worked on more than $45bn worth of deals over the years, was recognised for his outstanding client relationships.

The firm was also well regarded by peers for being one of the first to establish a private equity division. Blake Dawson jumped more than 40 places in one year to take out a global ranking of 13th place through its representation on 26 deals with a combined value of $215bn. It's no surprise that clients lauded the M&A practice for "its extensive experience and our longstanding relationship" and that the firm was regarded as "professional and on track of our needs". Another client noted that "the quality of the work performed by the firm was good and the firm works well with us".

The national team includes ALB leading lawyers David williamson and practice co-head Marie McDonald, both of whom have been recognised as "specialists, very good at what they do". The duo's contribution in the energy and mining sector includes landmark deals with BHP-Rio Tinto and AGL-Alinta, the importance of which will continue to resonate. Also warranting mention was Philip Maxwell, who "is known for his very practical and commercial advice as well as for his quick wit". Both Maxwell and fellow recommended lawyer Bruce Dyer specialise in takeovers and both have developed a solid reputation in the academic circle.

To top it off, the firm was praised for having bilingual lawyers in its team, which helped at least one client overcome difficulties in a cross-border deal.

Mallesons Stephen Jaques has engaged in the greatest number of deals this year, so it wasn't surprising when the firm was recognised by a client as the "go-to firm for most challenging and complex cases", while another summed it up as "first class". The firm was also praised for its "valuable expertise and commercial approach". Melbourne's Stephen Minns was singled out for his "hard work and dedication" and recognised by peers for his exposure to the corporate sector. Corporate all-rounder Alison Lansley was recommended for her "sound judgement and technical competency". Partner Tim Bednall was described by clients as "highly skilled" while David Friedlander was described as "a professional" and Greg Golding was said to "possess a great understanding of our business and consistently deliver outstanding results".

In between a strong portfolio of deals in the telco industry, Joshua Cole has established some loyal clients in the M&A sector. He was commended for both offshore and local work advising on sales and acquisitions. The firm's offshore experts are, according to a leading general counsel, "A plus". Hong Kong-based partner Hayden Flinn was described as "very commercial, with a good understanding of the nuances of PRC regulatory and political issues". Simon Milne was said to be "very strong elsewhere in the region, and very tight legally too. Nothing is too much trouble." Nicola Wakefield Evans and David Olsson were lauded as "among the best of the best from Australia".

Corrs Chambers Westgarth was given rave reviews by clients across a broad range of industries. The firm particularly impressed one who regarded it as the "best firm we've dealt with", while another stated that they "would rate a firm of pre-eminence". Teresa Handicott was widely acclaimed for her "pragmatic, good strategic thinking and service delivery". According to another, she "always provides excellent value, is responsive to our needs and is a lot more outcome and action orientated than many others". The team in Brisbane was particularly regarded for its "commitment and dedication to task, including the fact that they worked around the clock to complete the transaction". The "strong minded, very service oriented" Eddie Scuderi was noted for his skills in competitive and ACCC-related issues in M&A. Clients stated that he "understands our needs and provides strategic advice that is designed to deliver pragmatic outcomes". The acquisition of ALB leading lawyer Braddon Jolley has furthered the firm's industry influence. It has now secured four seats on the Takeovers Panel. Clients admired Jolley's "hard work and dedication," and he was said to possess "very strong experience across a broad range of corporate matters".

NEW ZEALAND

As the only New Zealand firm to feature in the global M&A rankings this year, it was apt that Simpson Grierson was often regarded by clients and peers as the top New Zealand firm in this practice area. The firm executed the most number of transactions than any other in New Zealand, and with a combined deal value of almost US$18bn, they placed ninth globally, a staggering jump of 33 places in less than one year. No doubt this reflects the firm's efforts to build solid relations with highly acquisitive clients, and peers keen to emphasise their involvement on the nation's most high profile deals this year. "Their quality of output is fantastic" noted one client, "the individuals there are insightful and experienced." Clients also valued the firm's commitment to cause, stating that "we have established a strong relationship."

Other clients mentioned the firm was their "preferred lawyers in New Zealand, they have worked with us ever since we first looked into the market." Head of the corporate division Kevin Jaffe was regarded as "a strong minded lawyer who gives valuable advice". Jaffe has been highly sought after on council-related transactions over the year, but also counts expertise in the transport and telecommunications sectors. Partner Simon Vannini was described as "hard working and technically minded". Vannini has developed a niche for infrastructure and telecommunications transactions, working on many of the nation's significant development projects.

Also building its client rapport is Buddle Findlay, which was given the most ovations. The commercial practice team was said to "always do a very good job", with one client stating that "our experience with them has been very positive". One longstanding client was emphatic in pronouncing their dedication to the firm, stating that "at all times advice from the Buddle Findlay team has been timely, presented in a pragmatic fashion and in over 25 years they have never made an error". In particular, senior partner Sarah Roberts was singled out for mention and described as "outstanding". For another client, "she is inspiring and we have unwavering confidence in her professional abilities, empathy and ethics". Simon Vodanovich was hailed by one client as their "primary form of contact for M&A".

Russell McVeagh is held in such esteem that not only have former clients praised the firm, even peers from across the Tasman are recommending it. One client noted that "we were new to the firm but soon impressed with the advice and service provided, particularly by Cameron Fleming". Fleming, partner in the corporate advisory practice, was respected for his experience.

The firm's corporate practice primarily specialises in M&A, covering a wide range of industries from the aviation to pharmaceutical sectors. Clients also mentioned Pip Greenwood, who was described as "outstanding".

Sheer practice size and quality of work meant Bell Gully was singled out for plaudits from several sources. Peers and clients were on the same page when they cited the firm's significant market presence as a factor for their recommendation, with one client noting that "the firm's capability is in the very top tier in Auckland". Another mentioned that they "have deep talent across a range of other specialisations that are frequently required to support large M&A transactions, such as property and intellectual property".

Client relationships and networking ability were also cited by clients, one of whom mentioned that Bell Gully's "extensive international network enables them to facilitate introductions to law firms in different jurisdictions as well as coordinate the overall transaction". Head of corporate Brynn Gilbertson was mentioned consistently, described as a "professional, top lawyer". Jayne Kirton was cited by a client who said, "One thing I like about the Bell Gully M&A team is that they understand the need to find a middle-line, pragmatic approach in negotiations." Peers also ranked Andrew Brown as a leading individual.

Leading firms

Other recommended firms