Jonathan Gabriel and Steven Hilfinger Discuss M&A in the Manufacturing Sector

Foley & Lardner LLP partners Jonathan Gabriel and Steven Hilfinger are quoted in the Mergers & Acquisitions article, “M&A More Nuanced as Companies Seek Technology for Smart Manufacturing,” discussing the shift in the manufacturing sector generated by the rise of smart manufacturing technologies.

The article references Foley’s recently issued Manufacturing White Paper, which examines the top legal issues facing manufacturers in 2023. Gabriel and Hilfinger co-authored the paper’s M&A chapter, which highlights a “seemingly inexorable march toward electrification and greater connectedness.”

“Companies have adapted; it’s not just private equity that has dry powder. There are more tools in the toolbox, longer plays as companies see how it plays out,” said Gabriel. “They can’t stand by on innovation.”

“It’s much broader than just cars, much broader than just automotive,” Hilfinger noted, explaining that the use of advanced technology is on the rise across the sector.

Gabriel said that while the pace of deal execution has slowed, “there is a lot of activity” and “legal is getting involved earlier” as strategies have developed a longer-term approach and due diligence has increased in importance.

He added that the current deal slowdown could end soon once interest rates are seen to have peaked. “It might starts as a trickle, Gabriel said, “and then a steady stream.”