John Reiss: M&A Slowdown Not Related to Brexit

The video discusses the impact of Brexit on M&A activities, noting a slowdown in mega deals but not attributing it to Brexit or the US election. It highlights the strategic imperatives and low interest rates that continue to drive M&A. The discussion also covers the growing expertise of Chinese companies in cross-border M&A and the role of CIFUS in US transactions, emphasizing transparency and cooperation to avoid national security concerns.

What was the initial reaction to Brexit in terms of M&A activity?

• It was expected to only affect small deals.

• There was a lot of concern that M&A would decline.

• It was thought to have no impact.

• It was expected to boost M&A activity.

What is one reason for the slowdown in mega deals in 2016?

• There was a lack of strategic imperatives.

• Interest rates were too high.

• There was a need to digest past activities.

• Companies were focusing on smaller deals.

Despite global uncertainties, why is the M&A market expected to remain active?

• High interest rates are encouraging deals.

• Low interest rates and strategic imperatives support activity.

• There is a lack of strategic imperatives.

• Companies are avoiding cross-border deals.

How have Chinese companies improved in cross-border M&A?

• By hiring more local employees.

• By focusing only on domestic deals.

• By becoming more transparent and cooperative.

• By avoiding regulatory challenges.

What role does CFIUS play in US M&A transactions?

• It sets interest rates for M&A deals.

• It assesses national security implications of foreign investments.

• It approves all foreign investments automatically.

• It provides funding for foreign acquisitions.

What was a common concern among US sellers regarding Chinese buyers?

• Chinese buyers would not pay enough.

• CFIUS would block the deal.

• Chinese buyers would not understand the market.

• The deals would take too long to complete.

What is a key factor that has helped Chinese companies succeed in M&A?

• Hiring good advisors and learning market practices.

• Focusing only on small deals.

• Avoiding all regulatory scrutiny.

• Reducing the number of deals.