Corporate Departments of the Year, US M&A: Skadden (Co-Winner)
Skadden represented a special committee of SolarCity's board in its sale to Tesla, Intel in its rollout of the newly reformed McAfee, and AdvancePierre Foods Holdings in its sale to Tyson Foods.
November 15, 2017 at 05:55 PM
5 minute read
Thomas Ivey, Skadden, Arps, Slate, Meagher & Flom
Lawyers from Skadden, Arps, Slate, Meagher & Flom represented a special committee of SolarCity's board in its $2.6 billion sale to Tesla Motors; Intel Corp. in its $4.2 billion rollout of Intel Security into the newly reformed McAfee; and AdvancePierre Foods Holdings Inc. in its $4.2 billion sale to Tyson Foods Inc. Here's what Thomas Ivey, an M&A and corporate finance partner in Skadden's Palo Alto office, had to say about the firm's blockbuster domestic deals of the past year, and what clients expect of Skadden lawyers.
What do these three sophisticated deals demonstrate about Skadden's M&A capabilities here in the U.S.? We hear over and over from our clients that they call us when they are faced with a transaction that has never been done before, has never been done on that scale, or is likely to be under intense scrutiny, either by investors, regulators, the media or all three. That was all certainly on display in the course of Tesla's acquisition of SolarCity, where I worked with the special committee on the deal. The U.S. deals we handle can easily be as complex as our cross-border transactions. Our work on behalf of Intel, helping the company disentangle and spin out a multibillion-dollar business line operated through subsidiaries in 60-plus countries, felt in many ways like a cross-border deal. … The swift pace of the AdvancePierre/Tyson tie-up, with less than 3 weeks between the receipt
of Tyson's initial indication of interest and the signing and announcement of the deal, demonstrates another hallmark of our practice: the ability to move teams into action immediately and move deals to the finish line under aggressive timetables.
What would you say are the traits of deal lawyers and the department overall that keep clients coming back to Skadden, especially in these sorts of transformational deals? Skadden is well established by now as one of the go-to firms for the really sophisticated, transformational deals. It always is an honor to be at our clients' sides when these deals close and become part of corporate history. So, our experience is, of course, one reason our clients come back to us, but there are other traits that I think allow us to stand out in a market with many excellent corporate attorneys. We partners usually get a lot of the attention in the press, but ultimately, on a day-to-day basis, our clients are working very closely with our associates, and I'm proud to say we simply have the best. It is gratifying that our clients so often take the time to report back to us on how much they appreciate an associate's attention to detail, business savvy or other such attributes. A few other traits we like to think help distinguish our corporate practice in California and globally would include our integrated specialty practice areas, such as CFIUS and national security; our geographic focus, including a fantastic corporate practice in Delaware; and the fact that we like to think we are really easy to work with. We're intense, but fun.
A prospective client with an urgent M&A matter calls and asks why your team should be retained to handle it. What is your answer? Urgent matters? We love them. Skadden can quickly marshal resources around the world to get moving on a deal within minutes of the call. I'm not sure if the hypothetical M&A matter is a mega-deal or a smaller transaction, but the good news is that even though we tend to get the most attention for the really big transactions, we are just as often handling smaller and middle-market transactions, so no matter the size or complexity of the deal, we have likely done a similar deal in the past. If not, we love figuring out the new ones.
What is Skadden doing to train the next generation of M&A lawyers in the firm's ranks? I serve on the hiring committee for the Palo Alto office, so the training of the next generation is a matter that is near and dear to my heart. It is something I think about every day and something I think we tend to do very well. Right out the gate, our new associates are given world-class business training as part of our Associate Comprehensive Education (ACE) program, which has been compared to a mini-MBA.
How do you balance the need to dot every “i” and cross every “t” in a particular deal with demands to be efficient with client resources? At Skadden, it is not just about dotting the “i”s and crossing the “t”s, but making sure the dot is centered just right on top of the “i,” that the “t” is crossed in just the right place. We are known for being sticklers for detail and yes, sometimes a particular project can take a little longer if you're intensely thorough. At the same time, we are cognizant every minute of the day of our clients' budgetary demands. We simply don't waste time. Ultimately, certain discrete projects might require that extra bit of time, but many others can be rolled out quickly and elegantly because of our experience and efficiency. We budget realistically and transparently and work with our clients closely to make sure we are hitting the right mark every day.
How are your M&A teams using technology to work more efficiently? We have a comprehensive online database of precedent documents which avoids the need to reinvent the wheel. We use video conferences to avoid wasted travel time and frequently take advantage of our global footprint to revise documents and conduct due diligence remotely.
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