Lee faced M&A global challenges head-on and found opportunities in quiet times
Navigating the complex world of mergers and acquisitions (M&A) is no small feat, particularly in a global context. Jessica Lee, associate general counsel and assistant corporate secretary at Altus Group, has seen firsthand the dramatic shifts in the M&A landscape over the past few years.
"When I first got here, I would say that M&A activity was at a high,” she tells Lexpert. “Companies were out there doing deals, law firms were really busy. It was just go, go, go.”
However, the tides soon turned, driven by increasing interest rates and a tough macroeconomic environment.
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“Companies were still out there. We were still out there looking at opportunities, but it was a lot quieter."
Despite the cyclical nature of the M&A market, Altus Group continues to seek opportunities, even as the challenges mount. One of the fundamental difficulties in global M&A transactions lies in managing the administrative tasks that span multiple time zones. Lee points to a deal involving New Zealand, Europe, and North America as a prime example of the logistical hurdles that can arise.
"At any one time, you're lucky to get two of the time zones together at the same time," she says.
Another layer of complexity comes from navigating unfamiliar legal landscapes. When entering new jurisdictions, like New Zealand, where Altus Group had not previously been active, the challenge of working with new local counsel and understanding different legal systems can be significant.
Lee says regulatory risks have also grown in recent years, often serving as the foremost concern in deal analysis.
"It's the first consideration you want to understand... what regulatory challenges there are, the impact, and the likelihood of kind of getting through," she says.
Regulatory compliance becomes even more intricate in cross-border deals, where multiple jurisdictions with varying timelines and changing regulations must be coordinated.
“It's just fast-paced right now, things are evolving, and there's a lot there," Lee says. "Regular reminders, constant communication is really the key.”
One of the significant deals Lee has overseen at Altus is the planned divestiture of Altus Group's property tax business, a $700 million transaction that is subject to regulatory approval.
"For any transaction, getting a head start on understanding the rationale for the deal, regulatory analysis, having good advisors, asking the right questions, keeping the board informed to enable them to exercise their duties and appropriately oversee the transaction, using external financial advisors to provide that advice from an independent perspective – is all very important," Lee adds.
Effective internal and external communication is also paramount in managing the broader implications of such deals. When a transaction is occurring, Lee's team holds regular meetings with senior leadership to address concerns and ensure alignment. Externally, they work to ensure that the message to investors, analysts, and other stakeholders is consistent.
"We want to make sure that the message to the street... is clear and it's concise," Lee says.
In a rapidly changing M&A landscape, the ability to navigate these challenges effectively is more important than ever. Lee's experience at Altus Group demonstrates that while the road may be fraught with issues – from time zone logistics and new legal systems to regulatory hurdles and the need for strong governance – the right strategies and a proactive approach can help ensure successful outcomes.
“We have to live that day in and day out," she says.
