Risky business: US and Asian investment attitudes amid shifting geopolitics

Report 26 September

Risky business: US and Asian investment attitudes amid shifting geopolitics

US and Asian senior executives give their insights into investment appetite and risks in Europe

Amid rising geopolitical tensions globally, Europe has come to the fore as an appealing and secure destination for cross-border M&A.

This report, in association with 36Brains, features a survey of 60 senior executives, drawn equally from Asia and the US, to gain insights into investment risk and cross-border due diligence in Europe.

Highlights include:

  • The vast majority of respondents (83%) believe Europe will become more attractive as a destination for global M&A over the next 12 months in light of ongoing geopolitical unrest between the US and China, and more than half (55%) say the same in light of the ongoing war between Russia and Ukraine.
  • 37% of US respondents will prioritise the creation of synergies across business over the next 12 months, while 37% of Asian dealmakers will focus on restructuring/distressed opportunities.
  • 37% of all respondents say the UK & Ireland will offer the best M&A opportunities in Europe over the next 12 months. 42% identify France as the least risky European market in which to pursue M&A transactions as a cross-border dealmaker, while 33% say the same of both Italy and Spain & Portugal. Half of all respondents cite the Nordics as the riskiest market.
  • The most important factors driving international dealmakers’ engagement with third-party advisers in Europe are improved risk management and the costliness of expanding in-house capabilities/technologies.
  • 60% of respondents say that due diligence relating to sustainability/ESG issues saw the greatest increase in scrutiny over the past 12 months when conducting deals in Europe. A fifth of respondents admit to having abandoned a deal due to poor appraisals of a target company’s environmental practices.
Did you enjoy this article?

Add the following topics to your interests and we'll recommend articles based on these interests.

Public M&A

Your M&A Future. Today.

Next-generation Mergermarket brings together human insights and machine intelligence to deliver groundbreaking predictive analytics.

Be the first to know with next-generation Mergermarket

Book a demo today