Accuracy contributed to discussions at Hong Kong Arbitration Week 2025, focusing on cross-border M&A disputes. The session brought together legal, expert and insurance perspectives to examine current dynamics in dealmaking and dispute resolution.
Panellists shared practical insights into the factors driving disputes in M&A transactions, as well as approaches to anticipating and managing them. Discussions highlighted the impact of market conditions on deal execution and post-transaction outcomes, alongside the increasing complexity of contractual arrangements.
Several themes emerged. Transaction timelines and return expectations remain exposed to external disruptions, requiring careful assessment of counterparties incentives and approaches to disputes. Earn-out and exit-related disputes continue to feature prominently, although improved liquidity conditions may support more commercial resolutions in certain cases. At the same time, recent efforts to enhance contractual certainty may only translate into disputes over the longer term.
The importance of rigorous due diligence and precise drafting was consistently emphasised, particularly in relation to financial provisions and earn-out mechanisms. Early alignment across advisory teams and robust data collection were identified as critical to mitigating risk and supporting potential dispute processes.
Finally, the role of insurance in M&A transactions continues to evolve. While it can facilitate deal execution and help manage specific risks, a clear understanding of its scope and limitations remains essential.
These discussions reflect a sustained focus among market participants on anticipating disputes and strengthening resilience in cross-border transactions.
