The results are in. Despite political uncertainty threatening to shake the cross-border M&A market, it would appear that it remains relatively unscathed - certainly in terms of deal size, if not number. YoY cross-border deal numbers are down 18%, but remain above years prior to 2016, and total deal size has only fallen by 3% YoY.
Brexit, Trump, and questionable electoral campaigns on the continent have given little cause for medium-term confidence. However, Baker McKenzie makes the case that deal fundamentals, and not external factors, have caused significant deals such as the Deutsche Boerse/London Stock Exchange, or Kraft/Unilever to collapse.
Having sold a number of British businesses to foreign buyers over the last few months (here), this certainly reinforces what we have seen. Although the headlines may focus on the influx of North America bound deals, there remains a significant appetite for acquiring good UK businesses if the company and deal is right.
As we round off the first quarter of 2017, political turbulence and economic uncertainty are becoming the new normal for dealmakers. And while there has been a dip in the M&A Index compared to the past quarter, it has not been as steep as many expected.