Reasons to Consider International Arbitration in M&A
Cross-border M&A markets continue to be active despite the global pandemic. While some sectors are in distress, others are cash-rich and looking to take advantage of opportunities arising from new business models and structural shifts such as Brexit. On all cross-border M&A, risk allocation and risk management are critical, including the choice of governing law, dispute resolution, and the enforceability of contractual promises and guarantees.
In this context, the use of international arbitration is increasing. Various advantages of international arbitration have made it the dispute resolution mechanism of choice, especially for transactions involving one or more emerging markets. As the data shows an increase in post-M&A claims, as well as an increase in the value of such claims, the superior enforcement mechanisms for arbitral awards over national court judgments are ever more important.
Bird & Bird are specialists in guiding clients through the options to allocate and mitigate risk, prevent disputes from arising, and when necessary, robustly assert or defend claims in international arbitration and related court actions and enforcement. To support our clients, we present our short primer on the key Reasons to Consider International Arbitration in M&A you can download here.
If you would like to know more, please contact the head of our London International Arbitration practice, Nick Peacock.