15 April 2016

APAC bankers say M&A activity will fall with Trump as US President

According to a survey of 300 M&A professionals in the Asia Pacific region conducted by Intralinks, a secure content collaboration company used by dealmakers, three-quarters of M&A banking professionals believe M&A activity in this region could be negatively impacted if US presidential candidate and current Republican primary frontrunner Donald Trump were to become president.  These sentiments are similar to the global sentiments expressed in the survey that Intralinks conducted with 1,500 M&A professionals worldwide.

According to Intralinks’ Global M&A Sentiment Survey results, 75% of Asian dealmakers view Trump as the presidential candidate most likely to have a detrimental effect on the level of M&A activities. Democratic frontrunner Hillary Clinton is perceived as the candidate most likely to have a positive impact on M&A activity amongst all the other presidential candidates across all regions. In Asia, 51% of dealmakers think that Clinton will have a positive impact on global M&A activities while 43% polled said she would have no impact.

Globally, dealmakers think that Trump, if elected, would be more detrimental to financial markets and M&A activity than Senator Bernie Sanders. This is despite the fact that Sanders, a self-described socialist, is sharply critical of financial services companies and advocates for stronger regulation of the sector.

Interestingly, US respondents are more positive about Trump having less of a negative impact on global M&A than Sanders: 46% of U.S. respondents stated that they believe Trump will have a negative impact versus 73% who believe that Sanders is less pro global business.

In contrast, more than half of the Asian dealmakers believed that if elected as president, Sanders, Ted Cruz, or John Kasich will have no impact on M&A activities in this region.

The global concern around a Trump presidency is clearly outlined by the data, with dealmakers in Europe (71%) and Latin America (83%) believing Trump will have a negative impact on the M&A market.

“Our data shows that Donald Trump is a cause of concern among global dealmakers, who rank him as the candidate most likely to have a negative impact on M&A by a wide margin,” said Matt Porzio, VP of M&A strategy at Intralinks.

The 300 respondents surveyed in the Asia Pacific region were from Singapore, Hong Kong, mainland China, Australia, New Zealand, Japan, South Korea, Malaysia and Thailand.

posted from Bloggeroid