Mid-Year M&A Disputes Report 2023

Regulation and Market Volatility Are Driving M&A Disputes in Digital Assets and ESG

Growing regulation and financial market volatility are fueling mergers and acquisitions (M&A) disputes in an uncertain deal market, with global dealmakers identifying the digital assets and services sector and environmental, social and governance (ESG) factors as dispute hotspots.

BRG’s Mid-Year M&A Disputes Report 2023 extends the firm’s multiyear research initiative into two critical areas: the digital assets and services sector and ESG considerations. By exploring the impact of key trends such as the “crypto winter” and mandatory ESG disclosures in Europe, the Middle East and Africa (EMEA), North America and the Asia–Pacific (APAC) region, the report offers valuable analysis on the factors driving M&A disputes globally and regionally.

Key takeaways from the report include:

• Deals in digital assets and services are ripe for disputes as market volatility and proposed regulations disrupt cryptocurrency activity. Artificial intelligence (AI) is also an area to watch as generative AI technologies come to market and regulators look to impose guardrails.
• ESG commitments are coming to the fore, driven by competing pressures from regulatory scrutiny and pushback against ESG-motivated decision-making. This has heightened the need for due diligence around ESG in M&A transactions.
• The APAC region has emerged as a significant focus for M&A disputes, as deal volumes remain high and regulatory expectations around digital assets and ESG shift.

Drawing on insights from leading M&A practitioners and BRG experts, the report examines how the global M&A disputes landscape has evolved this year and explores in depth how market turmoil, regulatory scrutiny, shifting perspectives and other trends are shaping the dispute outlook for digital assets and ESG.