European bankers eye M&A window

Some of the shiniest optimists in M&A are those concentrating on Europe, even though it lags a few paces behind the US cycle of prolonged economic growth, full equity valuations and rising rates.

In Europe, executives of companies with repaired balance sheets are basking in economic stability and revived growth, as well as plentiful available financing at historically low interest rates, all of which boosts confidence.

“But perhaps most importantly you have a political vision that encourages core Europe to come together, partly to protect against the downside of Brexit and partly to compete with US and Asian regional champions,” says Colm Donlon, co-head of M&A for EMEA at Morgan Stanley.