Though Brexit caused immediate global financial panic, it’s business as usual for international finance activity.
In a survey conducted by SourceMedia Research/Mergers & Acquisitions in partnership with CT, SourceMedia polled 222 senior dealmakers for information on their current deal volume and projections for the next twelve months.
We were surprised to find that over 90% of respondents do not see Brexit having any effects on their international business interests. This may be because the UK has yet to deliver their formal written request to leave the European Union as required by EU regulations. The entire process can take up to ten years.
The minority of concerned parties had a variety of reasons why they believe Brexit would change their international financial activities. Some believed London would no longer be the financial center it once was. Others cited funding delays, regulatory concerns and devaluing of currency.
Even though the UK is leaving the European Union, 28.8% of respondents state they will continue to use United Kingdom law as the governing jurisdiction for their international financing contracts. Since London has a reputation for being a world financial center, even without the support of the European Union they still possess the knowledge and experience to handle a high volume of international transactions.
Other respondents were split fairly evenly between Ireland, Luxembourg, the Netherlands or a different jurisdiction. Those choosing to use a different jurisdiction state that they will likely make the decision on a case by case basis, considering the area with the highest amount of activity.
What was the biggest concern among top dealmakers? While some cited Brexit, most were more concerned about the US presidential election.
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