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Introduction
Robert Kindler, former top M&A banker at Morgan Stanley, has returned to the legal profession after a hiatus of over two decades. In his new role as the Global Chair of Mergers and Acquisitions at Paul Weiss, Kindler shares his insights on the evolving landscape of deal-making and the shifting prominence of lawyers in this arena.
Lawyers Take the Lead: The New Face of Deal-Making
In a recent interview, Robert Kindler emphasized the changing dynamics of deal-making. While reflecting on his earlier stint as a lawyer 23 years ago, he noted that primarily bankers received the initial calls for deals. However, the current landscape has shifted dramatically, with lawyers taking the lead.
Navigating Complex Challenges: Lawyers in the Biden Era
Kindler acknowledges that lawyers today face multifaceted challenges, including environmental, social, and governance issues and stringent regulatory hurdles under President Joe Biden’s administration. He points out that these factors have led to the postponement or cancellation of numerous deals due to the assessment of time and risk involved.
A Respected Figure in Mega-Deals
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Robert Kindler’s reputation in the world of mergers and acquisitions is well-established. He has left his mark on some of the most significant deals of the past quarter-century, including Dow Chemical Co.’s $130 billion merger with DuPont Co., AT&T Inc.’s $85.4 billion acquisition of Time Warner Inc., and Bristol-Myers Squibb Co.’s $74 billion purchase of Celgene Corp.
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A Strategic Career Move: Returning to Big Law
At 69, Kindler decided to return to Big Law for several reasons. Morgan Stanley’s CEO, James Gorman, announced his departure, signaling a bank deal-making slowdown. Additionally, Kindler recognized that lawyers tend to enjoy more extended careers than bankers, making it an attractive prospect for his future in the field.
The Changing Face of Activism
Kindler’s role at Paul Weiss will involve advising on activist attacks, a realm he’s been involved in since the 1980s. He highlights the evolving nature of activism, with institutional investors playing a more significant role in recent years. Deal-makers now must carefully consider shareholder reactions and even structure deals to avoid shareholder votes, as the involvement of arbitrageurs and short-term investors can influence the outcome.
Building on Success: Paul Weiss’s Ambitions
Paul Weiss, with Robert Kindler on board, aims to expand its portfolio of large-deal work. Recent successes include facilitating World Wrestling Entertainment’s merger with Ultimate Fighting Championship, resulting in a new public company with an enterprise value of $21.4 billion. The firm also advised Apollo Funds in its $8.1 billion acquisition of Univar Solutions and Merck & Co.’s $10.8 billion acquisition of Prometheus Biosciences.
A Pioneering Move: Kindler’s Transition to Paul Weiss
Kindler’s move to Paul Weiss came about when Scott Barshay, the firm’s corporate department chair, and Kindler’s protégé, approached him about a new role. Barshay, known for his unconventional shift from Cravath to Paul Weiss in 2016, had previously worked with Kindler at Cravath during the late 1990s. In his new position, Kindler expects to bring in new clients and support existing Paul Weiss customers in their deals, governance issues, and activism matters.
In conclusion, Robert Kindler’s return to the legal profession at Paul Weiss reflects the shifting landscape of deal-making, where lawyers play an increasingly pivotal role in navigating the complexities of modern transactions. His wealth of experience and reputation in the industry make him a valuable addition to the firm’s ambitious goals in the world of mergers and acquisitions.
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