The financial impact on the M&A market

The financial impact on the M&A market

  • Nicola Longfield, Partner |

“Our client conversations have started to shift towards looking forward at their strategic direction including funding requirements and future investment opportunities.”

In our new reality video, I discuss the impact of COVID-19 on mergers and acquisitions.

Organisations operating in sectors less adversely affected by COVID-19 are still pressing on with their strategic M&A agendas, including investing in high-growth businesses that need funding. On the other hand, market volatility has resulted in very limited initial public offering (IPO) activity in the UK despite exceptionally high levels of equity raising in the public markets since March.

I provide three top tips for dealmakers in preparing for a new reality:

  • “Take time with businesses that may need to reposition their earnings profile and balance sheet position with lenders and investors – demonstrating the path to ‘recovery’ into 2021 will be absolutely key.”
  • “Keep close to strategic M&A opportunities – plan and be ready for a deal.”
  • “Continue to prepare businesses for sale or IPO whilst there is time, affording you the ability to launch a process at the best time.”

The development of future strategies and investment opportunities will be crucial for successfully preparing for the new reality.