Brexit Effect Adversely Impacting M&A and High Yield Markets in the UK, According to a Study by The M&A Advisor and Merrill Corporation

LONDON--()--A joint study issued by Merrill Corporation (www.merrillcorp.com), a global provider of secure content sharing, regulated communications and disclosure services, and The M&A Advisor, the premier leading global leadership organization serving M&A, restructuring and financial professionals, concluded the uncertainty around the result of the June 23, 2016 Brexit vote in the UK is having a negative and tangible near-term impact on M&A activity as well as high-yield and private equity investment in the UK. A majority of respondents also expressed concerns about attracting overseas investment if the UK leaves the EU.

In a wide ranging, quantitative survey of 600 respondents from 35 countries (the UK and others actively investing in the UK), plus 12, in-depth, one-on-one interviews with leading market practitioners, there were several key findings:

  • Over 65% of survey respondents felt that the UK would be less likely to prosper if it left the EU. A similar proportion said that Britain would be less likely to attract overseas investment.
  • 69% of respondents felt that uncertainty over the UK’s EU membership is likely to affect the current M&A and high-yield markets.
  • 67% said that private-equity investment decisions are being negatively affected.
  • 60% of survey respondents said that UK businesses would be less attractive to overseas acquirers in the short term if Britain votes to leave the EU.
  • In particular, 57% of respondents thought that EU-based businesses would be less likely to acquire UK-based ones, and half of respondents thought that businesses from the United States would be less likely to acquire British ones.
  • Views were evenly spread when it came to the question of whether US or British businesses would be more or less likely to acquire businesses based in the EU.
  • 65% of our survey respondents felt that a vote for Brexit would have a negative long-term effect on M&A and high-yield markets.

“It’s clear from our analysis of the survey and interviews conducted, that a broad, global mix of investment professionals believe a vote for Brexit is viewed to be a major risk to the M&A, private equity and high-yield markets,” said David Fergusson, President and CEO of The M&A Advisor. “Uncertainty is the pervasive feeling and common theme for survey respondents, with a broad consensus indicating M&A, private equity and high-yield transactions currently in discussion would be stalled until the Brexit vote result is known. And, a vote to leave the EU, according to most viewpoints, would likely result in a period of considerable and prolonged uncertainty.”

Alun Baker, Merrill’s Managing Director, EMEA, said, “The uncertainty associated with a separation from the EU is not good news in terms of foreign direct investment in the UK, which will likely result in lessened M&A activity in the short to medium term. I believe, however, that over time the markets will let out its collective breath and ultimately get on with business regardless of whether it’s adjusting to the new opportunities presented by Britain’s independence or remaining with the EU.”

The full report, including our analysis, complete survey results and key interview highlights, is available here.

About Merrill Corporation

Merrill Corporation provides technology-enabled platforms for secure content sharing, regulated communications and disclosure services. Clients trust Merrill’s innovative applications and deep subject expertise to successfully navigate the secure sharing of their most sensitive content, perfect and distribute critical financial and regulatory disclosures, and create customized communications across stakeholders. With more than 3,800 people in 41 locations worldwide, clients turn to Merrill when their need to manage complex content intersects with the need to collaborate securely around the globe.

THE M&A ADVISOR

Since 1998, The M&A Advisor has been presenting, recognizing the achievement of and facilitating connections between the world’s leading mergers and acquisitions, financing and turnaround professionals with a comprehensive range of services including M&A SUMMITS; M&A AWARDS; M&A CONNECTS™; M&A LINKS™ MandA.TV and M&A MARKET INTEL™. Visit www.maadvisor.com to learn more.

Contacts

Merrill Corporation
Sasha Urry, +44 (0)207 422 6252
sasha.urry@merrillcorp.com
or
RooneyPartners LLC
Robert Cavosi, +1-646-638-9891
rcavosi@rooneyco.com

Release Summary

Brexit Effect Adversely Impacting M&A and High Yield Markets in the UK, According to a Study by The M&A Advisor and Merrill Corporation

Contacts

Merrill Corporation
Sasha Urry, +44 (0)207 422 6252
sasha.urry@merrillcorp.com
or
RooneyPartners LLC
Robert Cavosi, +1-646-638-9891
rcavosi@rooneyco.com