M&A during the COVID-19 crisis
COVID-19 is overwhelming in both its humanitarian and economic impact. Forward-thinking leaders need to act now to optimize their company’s resilience—rebalancing for risk and liquidity, while assessing opportunities for growth coming out of the downturn.
Understandably, the market for mergers and acquisitions (M&A) contracted rapidly in the wake of COVID-19. Deal volume in the first quarter of 2020 dropped to a seven-year low, with deal value down 33% from the year before. But it’s clear this is no ordinary downturn: Fundamental changes in consumer behavior, supply chains, and routes to market are knocking companies off balance. While some shifts are temporary, other things will never be the same: The new normal will be “never normal”.
Current and future viability depend on C-suite action now. We all are facing a cycle of near-term actions for stability, coupled with strategic moves that will create new futures for companies and industries. In the coming months, M&A will move at different paces by sector and geography, depending on how severely each is impacted by the crisis. By repositioning, leaders can help outmaneuver uncertainty and outperform those less prepared. Readiness now determines resilience later.
Forward-thinking leaders will take a holistic approach, making necessary short-term moves for stability and resilience while keeping opportunistic growth plays on the radar, where possible.
Focus on accelerating out of the downturn next
Crisis impacts will continue to unfold over months. Making the right moves to position your company to accelerate out of the downturn is essential.
In the never normal, readiness determines resilience
Every crisis creates opportunity to be better prepared for the future. M&A plays a key role in shaping resilient growth.
We’re here to help
We help you respond to the challenges of COVID-19, providing trusted leadership in these urgent, critical and complex situations to help you address today’s M&A needs and succeed in the never normal.