M&A in the face of historic uncertainty

16 June 2020

Download Publications (360.01 KB)

Mergermarket is pleased to present M&A in the face of historic uncertainty, published in association with Imprima. With the Covid-19 pandemic throwing the global economy into an unprecedented crisis, both M&A value and volume fell in Q1 2020 – by 39% and 25% respectively – with Q2 projected to record a much steeper decline.

Exploring these trends, Mergermarket, on behalf of Imprima, spoke with six experts from the fields of law, corporate advisory, academia, and technology to share their insights on how the Covid-19 pandemic is impacting dealmaking, and the ways the landscape may continue to develop in the coming months.

Points of discussion include:

  • M&A has witnessed a deep decline, but is this the whole story? Although many deals are being cancelled or put on hold, some M&A processes have managed to proceed, albeit with some terms having to be renegotiated. 
  • Some sectors are better placed than others to resume dealmaking. Resilient sectors are likely to be healthcare and those in the technology space as remote working becomes normalised. Worst affected sectors include the travel and hospitality sectors which rely on in-person consumer spending.
  • The future is uncertain even as lockdown measures begin to ease. The impact of this crisis looks to be long lasting. The way that M&A deals are completed is bound to change for good, whether through the inclusion of clauses to protect against any similar situations, or through the continued use of videoconferencing solutions.