Recent weeks have attracted speculation that the end of the current ‘boom’ in commercial markets is nigh – a fear echoed by anxious corporate partners. Yet the reality is that the only similarity between current conditions and the dotcom boom is the number of zeros in the M&A rankings that law firms care so much about.
The previous boom was defined by a sustained run of M&A from Western corporates, largely in the technology, communications and telecom sectors. This trend was defined by stock-driven deals and produced valuations on companies that were plainly, in some cases, insane; anyone remember the 100-plus P/E stock?
