03 november 2016, 16:00 -
For the fourth time CMS is publishing together with Mergermarket the European M&A Outlook. The publication is based on forward-looking research on the prospects for M&A across Europe over the next 12 months. It is meant to complete the picture of the M&A market together with our CMS European M&A Study which is more focusing on analysing past transactions. The report canvassed the opinions of 230 Europe-based executives, from corporates and private equity firms, both before and after the UK’s referendum on 23 June.
Key findings include:
- Brexit hits expectations. Two-thirds of respondents believe that European M&A will fall when asked in the aftermath of the Brexit vote, compared with just 18% in our survey earlier in the year. Dealmakers are wary of the uncertainty, which could potentially pause activity both in the UK and beyond as companies wait for the dust to settle.
- Bargain hunters. An upside of the Brexit vote for buyers is its effect on the price of assets. Post-Brexit, 54% say that undervalued targets will be one of the greatest buy-side drivers, compared with 39% before the vote. Among corporates and private equity firms considering acquisitions, favourable prices are seen as a key motivator by almost nine in ten.
- Cross-border drive. While European dealmakers may have hit the brakes, the sentiment for international buyers remains strong. Almost four-fifths anticipate more cross-border M&A into Europe next year, while 61% think the value of these deals will increase. Buyers from North America and China in particular will look to snap up assets to fuel overseas growth.
The speakers will explain the key findings of the survey and will give an interesting report on the prospects for M&A across Europe over the next 12 months.
Please do not hesitate to contact Helen Rodwell or John Hammond, should you have any questions.