Why mid-market transactions are just right for Kain Lawyers
Managing director John Kain discusses the appeal of mid-market transactions and the challenges new merger laws present for public companies in competitive bidding.
In a rising interest rate environment, securing debt for larger deals can be more challenging. Smaller-sized acquisitions are often linked to lower quality assets.
For Kain Lawyers, the mid-market is just right.
“The mid-market, I think generally will have better quality assets by dint of their size and maturity than the small cap market, and generally, transact with much lesser reliance on leverage than the large cap market," founder and managing partner John Kain told Capital Brief in a recent interview. "So that has meant that it’s been a more resilient market over the last couple of years."
That resilience, plus the fact that mid-market deals account for the largest portion of the deal-making pie in Australia, means “it’s a logical place” for Kain to focus his firm.
But when Kain and I spoke, he expressed concerns about elements of recent draft legislation to overhaul Australian merger laws, particularly requirements for public disclosure of acquisitions. He sees these requirements as putting listed companies in a bind when competing against unlisted bidders.
