The value of European assets could be severely impacted should Britain take the decision to leave the European Union (EU) according to a survey of almost 1,500 global dealmakers involved in mergers and acquisitions (M&A).
The survey carried out by Intralinks, reveals that 65 per cent of M&A professionals believe the value of European assets will be negatively impacted if Britain voted to leave Europe. This has wider implications on the European economy, particularly major economies such as Germany, which heavily rely on cross-border deals from China.
In the survey, 76 per cent of global dealmakers stated a British exit from the EU will have a negative economic impact and 67 per cent of dealmakers believe it will negatively impact M&A levels across all of Europe. These results are starker among respondents directly impacted by the Brexit referendum, being held on June 23rd.
Some 87 per cent of dealmakers in Europe, Middle East and Africa (EMEA) and an overwhelming 92 per cent of UK dealmakers believe a British exit from the European Union will have a negative economic impact. 73 per cent of EMEA and 88 per cent of UK dealmakers also believe an exit will have a negative impact on M&A levels in Europe.
Dealmakers across the globe are all in agreement about the outcome of the referendum: 80 per cent of global dealmakers believe Britain will not exit the EU. In the UK, 84 per cent of dealmakers believe Britain will not exit the EU.
“There’s clearly a consensus among dealmakers that a ‘Brexit’ will lead to chaos for European M&A,” says Philip Whitchelo, VP Product Marketing & Strategy at Intralinks. “A ‘Leave’ vote from the UK could severely impact all of Europe’s assets, with foreign buyers bidding less for them if the UK pulls out of Europe. This could have drastic consequences on the European economy – and of course the UK economy – for a number of years.”
