For those operating in the TMT sector, the pace of change in technology and in business models seems only to be matched by the pace with which regulators rush to keep up. It can sometimes feel like decisions in Beijing, Brussels, London and Washington, to name but a few, are creating unbeatable headwinds for those looking at cross-border M&A in the sector.
Deal Dynamics, the new Hogan Lovells analytical tool looking at cross-border M&A, presents little clear evidence to support that concern.
There may be some signs of a slight softening in an overall cross-border M&A market which continues to show significant activity. However, the statistics provide little indication that cross-border TMT M&A is being hit hard by specific regulatory challenges. Indeed, the figures suggest that strong fundamentals (innovation, convergence and consolidation) continue to carry significantly more weight than the regulatory headwinds.
Those are themes we explore further in the market insights accompanying those figures.
Of course, whether those trends continue remains to be seen. Will the fundamental business deal drivers remain as “hot” as they have over recent years? Will regulators across the world see M&A as a positive driver, or negative influence, on the development of domestic TMT sectors? Will deal makers and their advisors continue to navigate regulatory challenges?
Those are questions Deal Dynamics will be monitoring over the coming months.
For more analysis, visit Deal Dynamics our powerful interactive data tool with exclusive editorial content providing analysis and insights on cross-border M&A