Amid rising geopolitical tensions globally, Europe has come to the fore as an appealing and secure destination for cross-border M&A.

This report, in association with 36Brains, features a survey of 60 senior executives, drawn equally from Asia and the US, to gain insights into investment risk and cross-border due diligence in Europe.

Highlights include:

• The vast majority of respondents (83%) believe Europe will become more attractive as a destination for global M&A over the next 12 months in light of ongoing geopolitical unrest between the US and China, and more than half (55%) say the same in light of the ongoing war between Russia and Ukraine.
• 37% of US respondents will prioritise the creation of synergies across business over the next 12 months, while 37% of Asian dealmakers will focus on restructuring/distressed opportunities.
• 37% of all respondents say the UK & Ireland will offer the best M&A opportunities in Europe over the next 12 months. 42% identify France as the least risky European market in which to pursue M&A transactions as a cross-border dealmaker, while 33% say the same of both Italy and Spain & Portugal. Half of all respondents cite the Nordics as the riskiest market.
• The most important factors driving international dealmakers’ engagement with third-party advisers in Europe are improved risk management and the costliness of expanding in-house capabilities/technologies.
• 60% of respondents say that due diligence relating to sustainability/ESG issues saw the greatest increase in scrutiny over the past 12 months when conducting deals in Europe. A fifth of respondents admit to having abandoned a deal due to poor appraisals of a target company’s environmental practices.