How the Pandemic Will Reimagine The M&A Landscape?

21jul5

The recent year has been difficult for companies in all segments, all over the world. While the pandemic is far from being over, adept M&A advisory firms are optimistic when making forecasts for the mergers and acquisitions landscape – here are some of the aspects that inspire that optimism:

  • The good in the bad – the economic crisis caused by the pandemic has hit hard in many companies, especially small and medium-sized businesses. The current environment is strangely favorable for sellers as well as for buyers – the owners of distressed companies find it easier to attract buyers, and buyers now have the opportunity to obtain the companies they are interested in for more attractive prices;
  • International acquisitions in the forefront – many of the surveys conducted to assess the willingness of companies to enter mergers and acquisitions say that most of the respondent companies are planning to invest into acquiring companies internationally, rather than from the domestic market;
  • Fierce competition that requires successful companies to possess unique qualities – increasing competition in all economic segments increases the need to have unique offerings and services. That motivates larger companies to turn their interest towards acquiring smaller businesses based on an idea that is unique and monetizable.

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