Global Corporate Advisor - Aug. issue

Global Corporate Advisor
Welcome to the August issue of The Global Corporate Advisor. In this newsletter, from our London office, we have an insightful article on the global hotel real estate market in 2015. Overall, the hospitality industry is braving geopolitical instability, and stagnant growth in some regions, to show accelerating activity and optimism in most markets. Globally, this year hotel transaction volumes are inching towards 2006 levels, though they are a long way from the pre-crisis peaks of 2007. How the recent economic events in the Asian markets affect this remains to be seen. In general corporate finance, we take a closer look at the locked box mechanism used in sale and purchase agreements, which is useful in simplifying transactions and thus avoiding negotiations on adjustments mechanisms, among its other benefits. On a final note, Chinese stock markets have been volatile in recent weeks, in turn affecting other capital markets. The extent of impact of these developments on mid-cap corporate finance is yet to be determined. In principle, a lot of cash still exists and many deals are being driven by strategic reasoning. However, if the demand in emerging markets decreases, it is likely to affect the profitability of companies and may subsequently result in lower enterprise values, especially in companies which have an above average dependency on these regions.