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Brunswick Cross-Border M&A Survey 2017

Dealmakers Positive on Global M&A Despite Protectionism, Says Brunswick Cross-Border M&A Survey.

Ease of Financing and Regional Policies Buoy Outlook Political Climate and Reputation of Companies Considered Key Factors China and U.S. Seen as Drivers of Outbound Activity.

Leading dealmakers are optimistic that softness in cross-border M&A will soon reverse. Citing cheap financing and access to cash, as well as regional policies including China’s Belt and Road initiative and U.S. tax reform, a majority of deal advisors expect an uptick in cross-border M&A levels in the next twelve months, according to Brunswick’s Survey for XBMA, the Symposium on Cross-Border M&A.

The survey polled more than 100 M&A lawyers, bankers and advisors across North America, Europe and Asia. Results were released ahead of the sixth annual XBMA Symposium hosted by Stanford Law School and organized by the International Institute for the Study of Cross-Border Investment and M&A (XBMA). The XBMA hosts annual meetings to address strategic and tactical issues related to international cross-border mergers, acquisitions and strategic investments, which are attended by a globally diverse set of senior executives, academics and advisors. This year’s program focuses on technology-related M&A.

"Despite all the rhetoric against globalization, our study shows that there is cautious optimism for cross-border M&A," said Tim Payne, Senior Partner and Head of Asia, Brunswick Group. "Dealmakers expect China and the U.S. to lead outbound acquisitions in the year ahead, but at the same time are worried about regulatory constraints and geopolitical factors. The study also shows that reputation has a material impact on deal making, from the offer price, to getting shareholder and regulatory approval, to post-merger integration.”

Highlights:

  • Globalization is not dead
  • China and US driving cross-border activity
  • Drivers are region-specific
  • Political climate affecting deal execution
  • Tech industry leading the way
  • Reputation matters for deal success

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