IFLR 1000
The Guide to the World's Leading Financial Law Firms

Some partners comment that Switzerland's situation is in many ways separate to that seen in other parts of Europe: there has been no credit crunch when it comes to national transactions and, as there was no housing bubble to burst, a lot of financings have been operating as they did before. Equity capital markets activity dropped dramatically in 2009, with stock values plummeting in response to extreme volatility on the global markets....

Some partners comment that Switzerland's situation is in many ways separate to that seen in other parts of Europe: there has been no credit crunch when it comes to national transactions and, as there was no housing bubble to burst, a lot of financings have been operating as they did before.

Equity capital markets activity dropped dramatically in 2009, with stock values plummeting in response to extreme volatility on the global markets. The debt market continued to be strong, however, with an upswing in the issue of Euro MTNs and convertibles.

There has been some trouble in the banking market, obviously, where the credit market has been exposed to international movements, but firms have been reporting a rise in mandates involving very large syndicated loans and Swiss club facilities granted by cantonal and commercial banks. However, this has in the main been on a domestic level. Throughout 2009, international banking deals tended to involve loan refinancings or the adjustment of covenants.

The big shift since autumn 2008 was a significant drop in M&A activity and an increase in regulatory work regarding general banking, insurance, capital adequacy and solvency issues.

Many partners report seeing deals simply stuck in the planning phase. As one puts it: "It's really frustrating – there's a lot of cash out there, and some excellent targets, but sellers are not getting the prices they want. People are just being so cautious with their money."

There was also a shift away from very big deals to small-to-medium ones, as well as deal-flow being largely characterised by restructurings and/or fire sales. Private equity activity changed as part of that trend, and firms watched as funds shifted attention away from the big-ticket deals and began looking at smaller, add-on investments.