The Texas Lawbook Quotes Jennie Simmons on Texas M&A Trends, Noting Growing Concerns Related to Interest Rates, Market Volatility and Unpredictability

Locke Lord Houston Partner Jennie Simmons was quoted by The Texas Lawbook on Texas’ heated M&A market, noting the continued streak resulting from cheap interest rates, concerns about changes in capital gains taxes and parties seeking to grow through strategic acquisitions. Simmons noted, in general, clients are being more cautious and want to ensure that they don’t overpay for an asset, particularly given the market volatility and unpredictability of the future.

“We have recently seen some adjustments to purchase price and valuation based on specific issues attributed to concerns identified during due diligence,” she said.

Among trends in the energy sector, Simmons noted that some clients are consolidating their positions for efficiency and stability, particularly in the midstream.

“There is increased activity concerning infrastructure and an emphasis on transportation,” she said. “Our midstream clients are expanding their existing assets and adding to their existing capabilities to position themselves strategically in a competitive market.”

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