While market uncertainty has caused a slower start to the dealmaking year than in 2015, M&A activity is set to remain very strong globally over the next three years, according to Herbert Smith Freehills’ new survey Beyond Borders.
The survey found that almost all respondents (99%) see M&A activity in North America rising in the years ahead.
More than nine out of ten (95%) respondents expect South Asia – dominated by India – to see an increase in M&A activity (56% saying significantly). And despite the slowdown in China, 84% expect to see activity in China increase over the next three years – with 60% saying the increase will be significant.
Instability in the Eurozone has pushed Western Europe down the agenda – although 76% of respondents still expect to see an increase in European M&A activity in the next three years.
In 2015, Europe was the top target territory for cross-border deals with 2,716 deals worth US$903.6bn, while North America was the second most popular target territory with 1,114 transactions worth US$468.8bn. The expected increase in M&A activity in North America over the next three years means that the region could well take top spot this year and beyond.