Risk in Review 2019: EMEA

17 December 2019

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After a half-decade of steady growth, markets in Europe, the Middle East and Africa (EMEA) are beginning to face significant headwinds. Geopolitical and macroeconomic uncertainty, rising populism and volatile stock markets have all weighed on dealmaker confidence. Yet despite the drop in mergers and acquisitions and a difficult deal backdrop, demand for deal-related M&A solutions – particularly, warranty & indemnity (referred to as representations & warranties in the Americas), tax and contingent risk insurance – has remained resilient.

For this report, the third in a four-part series, Aon commissioned Mergermarket to survey M&A legal advisors, private equity and corporate executives in EMEA for their insights and strategies to help manage risk and close deals in a competitive market.

Key findings include:

  • More than half of survey respondents expect the number of M&A deals to fall by between 2% and 5%, or by more than 5%, over the next twelve months.
  • 25% of respondents cited “evaluating macroeconomic/political risk” and “remaining disciplined through deal processes to avoid overpaying” as the main challenges dealmakers faced when executing deals on the buy-side.
  • 44% of respondents say sellers have demanded somewhat more favorable terms on deal terms over the last 18 months, with 28% saying sellers have pushed for much more favorable terms.