Over a third of takeovers leaked to the press as dealmakers fail to keep schtum
Leaky dealmakers have become an “endemic” problem as more than a third of all transactions globally are revealed by the press ahead of their official announcement, a new report has warned.
More than a third of all the 267 transactions worth $2bn or more last year were leaked to the circling journos, according to comms consultancy H/Advisors.
Western Europe and Asian financiers were found to be the most talkative globally while those working in industries like aerospace, transport and retail were most likely to spill the beans to media.
Neil Bennett and Tom Johnson, Global Co-CEOs of H/Advisors, said firms need to be prepared for media interest right from the start of any transaction.
“Mergers and acquisitions rank among the most significant and complex events that any corporate leader or boardroom can face,” they said.
“This research, looking at where and when the leaks occur, and how accurate they tend to be, demonstrates that any business needs to be well-prepared for media interest right from the start of an M&A process.”
The report shows that 55 per cent of deals in the APAC region leaked last year ahead of any announcements, only marginally ahead of Western Europe where 48 per cent of deals leaked.
The US was a significantly less risky leak environment with only 28 per cent of deals leaking, while the least risky region was the rest of the Americas.