M&A On the Rise 82% $1.6T Cash Reserves Create Opportunity Beware of Legal Hurdles increase in cross-border M&A between regions from H1 2013 to H1 2014 €1T in current reserves at European-listed companies H1 2014 global M&A deal value, which is the highest half-year since 2007 88% of respondents consider legal issues critical when dealing with cross-border M&A Top Five Areas of Legal Risk 1 Markets Present Complex Risks Respondents rated these countries as the most challenging to close a deal 2 3 4 5 Antitrust Anticorruption Employment Tax IP High Risk, High Reward “Cross-border M&A can be a dynamic part of your business growth. In this volatile global environment, simply having domestic strategies may not be enough. While the hurdles can be daunting, the advantages of achieving a much broader global presence are significant.” Guillaume Kellner Head of Corporate Practice, Paris, Paul Hastings guillaumekellner@paulhastings.com Paul Hastings LLP | www.paulhastings.com Sources: Day One interview of 40-plus top European business leaders, MergerMarket H1 M&A study .