Donald Trump becoming President of the United States would have the most “detrimental effect” of any candidate on M&A activity by “a wide margin,” according to a survey from content collaboration company Intralinks released on Thursday.
Two-thirds of M&A banking professionals worldwide believe a Trump Presidency would be even more negative for their sector than “self-described socialist” Bernie Sanders winning the election this November.
This is “despite the fact that Sanders, a self-described socialist, is sharply critical of financial services companies and advocates for stronger regulation of the sector,” the report adds.
Figures in the survey show there is much greater worry about Trump internationally than in his native US.
“The overseas concern around a Trump presidency is clearly outlined by the data, with dealmakers in Europe (71%), Latin America (83%) and Asia-Pacific (75%) believing Trump will have a negative impact on the M&A market.
“However, according to the results, US dealmakers have relatively more faith in Trump than dealmakers in other parts of the world, with 46% of US dealmakers stating they believe Trump will have a negative impact on global M&A activity.”
Hillary Clinton, meanwhile, will have the most positive effect of any candidate according to those questioned.
Here’s a breakdown of the global survey. Respondents indicated that if elected:
- Donald Trump will have a negative impact on M&A activity in their region (62%)
- Hillary Clinton will have a positive impact on M&A activity in their region (45%)
- Bernie Sanders will have a negative impact on M&A activity in their region (45%)
- Ted Cruz will have no impact on M&A activity in their region (51%)
- John Kasich will have no impact on M&A activity in their region (60%)
M&A deals are transactions where companies or businesses are transferred or consolidated. A recent example would be Disney purchasing Marvel and Pixar studios in 2010 and 2006.
Trump is currently leading the race for the Republican nomination, with 743 delegates compared to his nearest rival Ted Cruz who has 545. The next Primary is the state of New York on April 19.