M&A activity in the COVID-19 and post COVID-19 world

The early stages of the COVID-19 crisis has seen corporates focus on their immediate needs, such as balance sheet strengthening, liquidity issues, announcement obligations, (for some) their results and financial calendar, contractual arrangements, their workforce, new ways of working and operational continuity. Naturally, M&A activity reduced significantly. As things move from crisis to a new normal, we consider how the COVID-19 crisis might change the nature of private M&A transactions. Whilst it is too early to predict the timing and shape of the downturn and subsequent economic recovery ahead, prior crises would indicate that there will be a recalibration of M&A type and terms. The COVID-19 crisis also offers some unique opportunities and challenges and we anticipate a development of market practice in areas such as transaction structures and negotiations.