Clifford Chance

Our European Market Practice Survey comprised transactions with financial sponsors, as well as corporates, and included both auction sales and proprietary deals

All transactions were led out of Europe and involved a range of cross-border European targets across a variety of sectors. Our survey analysis is based on a sample of 152 transactions led out of Belgium, Czech Republic, France, Germany, Italy, Luxembourg, The Netherlands, Poland, Romania, Spain, Turkey and UK and presents a comparison between the Continental Europe and UK markets.

The results show an increase in the use of locked box and a reduction of the use of completion accounts. W&I insurance was on the agenda in most of transactions, increasing its popularity particularly within financial investors that use this instrument in 56% and 46% of UK and CE deals, respectively. In 2021, regulators toughened up foreign investment restrictions, as a consequence of which we have noted an increase in the use of hell or high-water provisions. Overall, the market remains generally seller friendly.

Digital infrastructure deals have significantly increased in the past year, particularly within financial investors as these assets have strong infrastructure-like characteristics.