MANAGING AND RESOLVING M&A DISPUTES THROUGH ARBITRATION: CURRENT TRENDS AND TIPS
In a world of ever-growing globalisation, it is unsurprising to witness the significant increase of cross-border M&A transactions over the last decades. Growing from a mere 472 deals in 1985 to no less than 13,872 deals in 2019, cross-border M&A deals now represent about 36 percent of the total value of M&A deals worldwide.
Inevitably, disputes frequently arise from such complex transactions and their drafters should automatically opt for a dispute resolution mechanism. As is the case with respect to any cross-border commercial relationship, international arbitration is very well suited to resolve disputes that may arise between the parties to cross-border M&A transactions.
Some of arbitration’s advantages that fit particularly well with the structure of M&A transactions include confidentiality, the possibility of appointing experts in the field as arbitrators, and greater ease of enforcing an award in the relevant jurisdictions.
Furthermore, arbitration manages to keep up with national court practices in order to fit the specific needs of its users, as can be seen in the introduction of injunctive relief in many institutional rules, including the introduction in 2012 in the International Chamber of Commerce (ICC) rules of arbitration of the possibility to seek urgent temporary relief through the appointment of an ‘emergency arbitrator’.
Oct-Dec 2021 issue
Hogan Lovells LLP