If the US election was being fought on M&A grounds, there would be a landslide
Dealmakers will be closely watching the results of the US presidential election next month – a lot might hinge on the outcome.
A survey of 1,600 global dealmakers found 56 per cent believed that Donald Trump would have a negative impact on mergers and acquisitions (M&A) activity.
But they’re not too worried: just 15 per cent of those surveyed said they expect Trump to win. (Though whether he’ll accept defeat is another matter.)
Read more: Boom in deals pushes industrials M&A to all-time high
Some 57 per cent believe Hilary Clinton winning the election would have no impact on M&A, while 26 per cent believe she would have a positive effect.
Participants in the survey were asked what impact the candidates would have over the next six months.
Dealmakers were also asked about the UK’s Brexit vote, which registered as a significant threat to M&A alongside global economy weakness, China and the prospect of US interest rate rises in 2016.
Read more: The UK has fallen out of the top five M&A destinations for the first time
Some 40 per cent of global dealmakers think the vote will mean a reduced number of acquisitions of UK assets over the next six months, while 38 per cent said it would have no impact.
Earlier this week, the UK fell out of the the top five places for businesses to seek investment in an EY report for the first time.
Intralinks’ Philip Whitchelo said:
There’s clearly an overwhelming consensus among dealmakers that Hillary Clinton will be the next US president and that Donald Trump would be bad for global M&A… However, factors other than US politics are also dominating dealmakers’ attentions, with the UK’s Brexit vote, monetary policy changes and the impact of China on the global economy being top of mind for many.