Brexit And Inbound U.S. Cross-Border M&A Activity

Author:Mr Steven Eichel
Profession:Sullivan & Worcester LLP
 
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The June 23, 2016 Brexit referendum has created substantial ongoing uncertainty regarding its ultimate impact upon the UK economy, the continental European economy and the global economy as a whole. Whether or not ultimate implementation of the Brexit decision turns out to be a "good thing" or a "bad thing" (economically, politically and otherwise) will depend upon whom you ask. While it will be some time before the dust settles sufficiently to make a fair assessment of the actual outcome, it is probably safe to say that it will be a "mixed bag" on an overall global basis.

As an M&A attorney who works primarily with French clients doing business in the United States either by organically growing a new operation here or by purchasing an existing U.S. company, I frequently get asked, "Do you think Brexit will hurt your French practice?" As a lawyer who is neither an economist nor a political scientist, my "layman's" answer to that question, based on my own anecdotal experience to date and the opinions of many of my French clients and colleagues, is that the impact will be neutral at worst and positive at best.

The bumpy road that lies ahead for the European Union attributable to impending Brexit will undoubtedly be reflected by peaks and valleys in European securities markets and in the general level of investor confidence in the long-term stability of the EU and its members' economies. While the United States is, at least in the short term, facing a certain degree of political and economic uncertainty owing to a Presidential...

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