M&A Deal Terms in 2017: What Can Deal Teams Expect?

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Posted by Robbie McLaren and Nick Cline, Latham & Watkins LLP, on Monday, May 29, 2017

Editor’s Note: Robbie McLaren and Nick Cline are partners at Latham & Watkins LLP. This post is based on a Latham publication by Mr. McLaren, Mr. Cline, and Catherine Campbell. This post is based on a publication in IFLR’s Mergers and Acquisitions Report 2017.

Britain’s decision to leave the European Union in June 2016, coupled with the election of Donald Trump as US president in November 2016, gave dealmakers plenty of pause for thought last year—but ultimately did little to derail strategic M&A. Encouraged by the post-Brexit decline in the value of sterling and supported by the continuing availability of transaction financing at attractive rates, the number of acquisitions of UK companies by US acquirers reached the highest level in 10 years, with 262 deals valued at US$48 billion closing in 2016.

With attractively priced credit predicted to continue to finance M&A transactions throughout 2017 and foreign buyers continuing to regard the UK and Europe as an attractive investment opportunity, there are strong indications that inbound UK and European M&A activity from the US will continue. In our view, transatlantic deal makers will increasingly encounter the following key deal term differences between the US and UK M&A markets.

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May 29, 2017 at 07:42PM

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