Down and Dirty with Dirk Besse: U.S. Lawyer Predicts Booming M&A Scene by 2025
By Sabine Wadewitz, Frankfurt
Introducing Silicon Valley-style innovation and technology to Germany
The German branch of stateside firm Morrison Foerster, known for its transactional focus, expects a seismic surge in M&A biz by 2025. German Managing Partner Dirk Besse, who also heads the European M&A practice, dishes on the good times ahead for start-ups in Germany.
A decade ago, Morrison Foerster dug its roots in Germany with an office in Berlin, boasting 24 legal eagles. Today, the unit's Potsdamer Platz digs are bustling with 114 employees, including 51 lawyers and 16 partners.
"MoFo's a transactional law firm, the perfect size to execute U.S. ambitions in Deutschland," Besse, a savvy lawyer and bridge builder, spills to Financial Times. The firm's forté? International business. "We've got the heft to juggle multiple transactions simultaneously," he declares, "with all the mayhem that comes with it."
Silicon Valley to Germany
"We're all about connecting Silicon Valley to Deutschland," Besse reiterates. A current gig? Guiding U.S. electric vehicle manufacturer Rivian in its Volkswagen joint venture. "It's not just about the deal's hefty sum; it's about the tech developed in California lifting classic German industry to new heights," Besse stresses.
The Best of Both Worlds
"We're awesome bridge builders, offering top-tier talent in Germany while leveraging our global network to snag mandates in sunny California," Besse explains. The German office's client list boasts heavyweights from Japan's tech and electronics industry, with the team leading cross-border transactions in Europe, China, and the USA.
A Strong Litigation Practice Too
In addition to transactional prowess, MoFo boasts a globally recognized litigation practice, Besse affirms. "Our teams support corporations during sticky M&A phases and help navigate tricky compliance issues," he points out. Case in point: MoFo's advisory role for Mercedes-Benz's supervisory board during the infamous diesel scandal.
Globally Present, Globally Strong
With a whopping 1,000+ lawyers worldwide and 1.34 billion dollars in revenue, MoFo's on a record-breaking trajectory. Yet, the German office's growth stats remain mum. Europe's lucky to welcome MoFo's Brussels and London offices as well.
M&A Blitz by 2025
According to Besse, the M&A scene's about to heat up by 2025. "Companies'll grab opportunities with both hands," he asserts. Some corporations might seek to bypass U.S. tariff barriers, but Besse doesn't expect a tsunami of deals. "As for reluctant governments and their temporary protectionist phases, they'll pass. Global exchange is, at its core, all about going big," Besse asserts.
Investment Control Under Scrutiny
Many countries are tightening investment control, making cross-border transactions more challenging. "Four of our lawyers focus on sanctions and investment control," Besse shares. MoFo's global head of National Security practice, John Smith, relocated to Berlin, eyeing Europe as a promising market for transactions that'll keep evolving.
Navigating Tough Terrain
Still, economic turmoil has led to lengthy negotiations and delayed deals in Germany, but that doesn't deter Besse's sunny outlook. "I still believe in Deutschland," he declares, banking on the country's EU position. "Sure, innovation companies may migrate to the USA, but it's our job to cultivate a welcoming environment for start-ups to bloom."
Besides, Europe's got plenty to offer. "We need a flourishing thicket of growth companies to foster those shining stars, ensuring that they don't all fly south and get snapped up by the Magnificent 7," he warns. "These corporations closely eye promising software developments worldwide and strategically hire talent via acqui-hires."
So while the details remain vague, one thing's for sure: Morrison Foerster's hedging its bets on a M&A boom by 2025, always keeping an eye on those tantalizing tech start-ups amid-st the hustle and bustle of international business. The game's afoot!
- The surge in M&A activity expected by 2025, as predicted by Dirk Besse, will likely be fueled by technology-focused deals, given Morrison Foerster's emphasis on international business and its role in guiding companies like Rivian in technological joint ventures.
- The growth of Morrison Foerster's European M&A practice, led by Dirk Besse, stems from their ability to leverage technology developed in regions like Silicon Valley to catapult traditional German industries into the future, making them more attractive for international business deals.
