Inbound M&A deals: Adrift for now?
As noted in our previous report, “2016’s Thriving M&A Market,” this year has seen a continuation of the historically high trend of inbound M&A activity in the US. This is largely due to foreign investors’ interest in a market that they view as stable and growing, especially compared to the fluctuating fiscal positions of developed countries in the EU.
However, with the unexpected results of the November 8 general election, projections concerning foreign direct investment (FDI) activity for the rest of the year and Q1 2017 are now askew. Our research indicated that investors were wary of candidates who identified with protectionist and populist sentiments, fearing that they would enact legislation to boost tariffs and drive up prices. Now that Donald Trump is the president-elect, we have decided to conduct a brief overview of his stated policies on trade and globalization. Our review will include a prediction of the FDI market in the US going forward, as well as what the recent election of populist, conservative candidates worldwide means for the global investing climate. We have also asked Joe Andrew, Dentons’ Global Chairman and former chair of the Democratic National Committee, to contribute his unique perspective on the events that have unfolded.