Mergers and acquisitions (M&A) are notoriously challenging in any environment, and the fallout of the COVID-19 pandemic portends even more chaotic times ahead for the global M&A market. As the adage goes: amidst the chaos, there is also opportunity. Many companies are already seeking to rethink, reassess, and reinvent themselves to become more resilient and future-proof.
Some may exploit opportunities in the financially strained and depressed valuation environment to push for strategic acquisitions of distressed assets, while a handful may expedite and close late-stage transaction deals. Others may deploy more cautious approaches to assess the potential market recovery and shelf or reconsider their business plans and transaction deals altogether.
In the inaugural edition of 2020 MMC M&A Handbook, we draw on the expertise and capabilities of our business leaders across Marsh & McLennan Companies to provide our collective insights on three distinct areas of focus: dealing with financial strain, achieving success through M&A, and optimizing post-transaction processes while navigating this unchartered environment of financial uncertainty and volatility.
We hope you find these articles insightful.
MMC M&A Advisory Committee
Read the full version of the foreword
Foreword
Mergers and acquisitions (M&A) are notoriously challenging in any environment, and the fallout of the COVID-19 pandemic portends even more chaotic times ahead for the global M&A market. As the adage goes: amidst the chaos, there is also opportunity. Many companies are already seeking to rethink, reassess, and reinvent themselves to become more resilient and future-proof.
Some may exploit opportunities in the financially strained and depressed valuation environment to push for strategic acquisitions of distressed assets, while a handful may expedite and close late-stage transaction deals. Others may deploy more cautious approaches to assess the potential market recovery and shelf or reconsider their business plans and transaction deals altogether.
The future M&A landscape will look drastically different from before as businesses navigate the changing dimensions of conventional transaction risks and adapt through and beyond the economic crisis. Efforts to rethink and diversify supply chains to withstand future shocks—such as disruptions to one supplier or to a singular geographic region–will accelerate the shift of investment flows across national and industry levels. Meanwhile, constraints on operations and logistics because of intermittent lockdowns exacerbate shoring impulses and/or greater partnerships with neighbouring economies.
On the other hand, cross-border transaction deals have become more difficult to close due to travel restrictions, heightened geopolitical tensions, and rising scrutiny on the grounds of national security. Recent acquisition efforts by some major conglomerates into new geographies and emerging sectors, such as digital health, food delivery, and mobility technology, have also faced closer public and regulatory scrutiny over potential anti-competitive behaviours.
The road ahead will be turbulent, but we are already at the crucial moment that charts the course for our collective future. Businesses that can advantageously identify and seize opportunities where presented will do well in the new normal.
In the inaugural edition of 2020 MMC M&A Handbook, we draw on the expertise and capabilities of our business leaders across Marsh & McLennan Companies to provide our collective insights on three distinct areas of focus: dealing with financial strain, achieving success through M&A, and optimizing post-transaction processes while navigating this unchartered environment of financial uncertainty and volatility.
We hope you find these articles insightful.
MMC M&A Advisory Committee
