3. Cross-border deals will continue
Robust cross-border M&A has been fuelled by corporates’ need for growth and access to broader investor bases.
The US continues to be a prime destination, as a large and scalable market that offers opportunities for higher growth compared to other developed economies. Re-listing or dual-listing in the US also provides corporates with access to a deeper investor base as well as more extensive research coverage.
There is optimism for dealmaking, deregulation and pro-business attitudes in the US. However, inbound cross border transactions may become more difficult depending on the Trump administration’s approach to policy areas including antitrust enforcement, tariffs and foreign trade regulations.
In Europe, despite the cheap relative corporate valuations compared with the US, the volume of cross border deals from European companies into the US remains significantly higher than US companies into Europe.