The harm a messy Brexit will bring will be felt most in the UK, a new study says, but it will also significantly impact the rest of the world
Baker & McKenzie is warning that the impact of a “disorderly” exit of the UK from the European Union may cost the global M&A market up to $1.6 trillion.
According to a Forbes report, the global law firm in partnership with Oxford Economics has found that a lack of a clear plan for the Brexit may bring about “a more damaging cycle of political and market uncertainty.”
Though this scenario’s effects will expectedly damage the UK’s M&A market the most, the effect will likely impact the whole global market, Baker & McKenzie found.
The firm’s central scenario, Forbes said, forecasts M&A activity worldwide to only be slightly down in the next couple of years and then recovering.
Nonetheless, Baker & McKenzie London M&A partner told to the publication that there will still be an ample number of London-based activity despite a slump in domestic M&A deals in the UK because of the primary of English law in cross-border deals even with deals not involving UK assets.
“London will also retain a remarkable concentration of financial, legal and economic talent. In the last few days we have seen evidence that the M&A market in the U.K. won’t come to a crashing halt even if it won’t be at its previous pace. There are still plenty of buyers and sellers for the right deal at the right price,” he said.
According to a Forbes report, the global law firm in partnership with Oxford Economics has found that a lack of a clear plan for the Brexit may bring about “a more damaging cycle of political and market uncertainty.”
Though this scenario’s effects will expectedly damage the UK’s M&A market the most, the effect will likely impact the whole global market, Baker & McKenzie found.
The firm’s central scenario, Forbes said, forecasts M&A activity worldwide to only be slightly down in the next couple of years and then recovering.
Nonetheless, Baker & McKenzie London M&A partner told to the publication that there will still be an ample number of London-based activity despite a slump in domestic M&A deals in the UK because of the primary of English law in cross-border deals even with deals not involving UK assets.
“London will also retain a remarkable concentration of financial, legal and economic talent. In the last few days we have seen evidence that the M&A market in the U.K. won’t come to a crashing halt even if it won’t be at its previous pace. There are still plenty of buyers and sellers for the right deal at the right price,” he said.
