A Quick Chat with Louis Lehot: M&A in 2021

Louis Lehot
3 min readMay 4, 2021

With the significant global economies benefitting from considerable government stimulus, easing monetary policies, and increasing vaccination rates, a return to work is powering growth in gross domestic product across the board. We are seeing large employers offering piles of cash to workers to return to work and pent-up demand unleashed across virtually every sector of the economy. As a result, we expect to see significant growth in M&A transactions in the second half of 2021.

We sat down with Louis Lehot of Foley Lardner to discuss the outlook for M&A in the second half of 2021?

Q: As we enter the second half of 2021, what industries do you see popping?

Louis Lehot: The recovery is benefiting all sectors of the economy. We are seeing airlines, cruise lines, major hotel chains, and other travel and entertainment sectors benefiting specifically from pent-up demand. We also see a surge in activity in the renewable energy space, as renewed efforts by the United States to meet Paris Climate Change Accord targets are back at the forefront of industrial policy.

Q. do you see any red flags as the year rolls out?

Louis Lehot: The economy and M&A, in particular, are enabled and empowered by the flow of cheap capital in the debt markets. If the significant government stimulus efforts and easy monetary policies lead to inflation, the cost of capital will ratchet up quickly, which could put the brakes on growth. We also expect to see the training wheels come off the large number of SPACs that came to market in 2020 as lock-up agreements expire and these companies trade freely. If there are significant stock drops in companies that went public via the SPAC merger, we could see a dampening in the equity markets.

Q. How does 2021 compare to the first half of 2020?

Louis Lehot: In the global Silicon Valley, we see an unprecedented pipeline of IPO and de-SPAC companies go public at lofty valuations, which are translating into a gold rush of venture capital deals in the private markets at derivative multiples. The result has been a euphoric rise in the creation of new startups and hyperactive fundraising by growth stage and late-stage private companies not seen in a generation.

Q. What would you say to a lawyer just entering this field?

Louis Lehot: In my career, I have seen a boom, bust, boom, bust, boom again, and each time, what is hot and what is not changes. Lawyers wishing to become great business advisors should be well-rounded and work for various growth companies in good times and in bad. Great lawyers that survive the volatility are those that can adapt to changing circumstances. Being well-rounded in your coverage of clients, expertise and experience make all the difference.

Read the Articles written by Louis Lehot :

Louis Lehot- What to expect for seed and pre-seed stage financing in 2021

Louis Lehot- A Brief Legal Guide To Buying And Selling Shares Of Private Company Stock

Louis Lehot- The IPO Markets Are Changing, And So Is The Lock-up Agreement

Louis Lehot- What are SPACs, and how they are different from IPOs?

Louis Lehot- L2 Counsel Represents AgTech Leader FluroSat In Dagan Acquisition

Louis Lehot- Considering Selling Your Company? Be Clear on Your Fiduciary Duties

Louis Lehot- Incentivizing With Stock Options: What Your Startup Needs To Know About ISOs, NSOs And Other Parts Of The Alphabet Soup

Louis Lehot- Ready To Sell Your Startup In 2021?

Louis Lehot- The State Of The Acqui-Hire In 2021: The Good, The Bad, The Why And What’s Next

Louis Lehot- Leaving Your Job? Don’t Forget Your Stock Options…

Louis Lehot- A Short Primer for Startups on Local Labor and Employment Law Compliance

Louis Lehot- How To Clean Up A Corporate Mess

Louis Lehot- Calculating And Paying Delaware Franchise Taxes — Startups Need Not Panic



Louis Lehot

Louis Lehot is a partner and business lawyer with Foley & Lardner LLP, based in the firm’s Silicon Valley office. Follow on Twitter @lehotlouis