Developments in Thai M&A
Pakdee Paknara and Paradorn Leosakul, partners at The Capital Law Office, discuss the M&A landscape in Thailand, including the impact of COVID-19 and rapidly evolving technologies.
Pakdee Paknara
The impact of COVID-19 has slowed down M&A in Thailand and abroad and led to a conservative approach in the sector. Diversification has also been a key trend. Previously, clients focused on their core business but now they are trying to diversify their sources of revenue.
"Nothing will go back to the way it was. Following the Tom Yam Kung crisis, Thais learned not to have foreign currency debt, now they are trying to diversify their financial obligations."
There are a number of legal issues that need to be navigated to help clients through these changes.
"Clients need to anticipate changes, technology changes fast but the law develops slowly. For example, the settled law around cryptocurrency and digital assets has not caught up with the rapid advances in the field."
"While fundamental legal principles are unlikely to change, regulations issued by particular authorities to supervise transactions in rapidly developing areas of technology should be expected. However, no matter how fast the regulation is issued, technology is always one step ahead."
ESG is an increasingly key concern for clients across all industries.
"Even though it is not the law, clients will have to make these changes sooner or later. If they do it sooner, it will create opportunities and synergies. It is not just about legal advice but advising on best practice."
The Capital Law Office
