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Global M&A Insights: Adjusting to adversity

This report charts the dramatic impact of Covid-19 coronavirus on M&A markets across sectors and regions, how it has accelerated key trends such as digitalisation and provoked political responses that will shape deal activity for the very long term.

Report highlights

A market transformed by the Covid-19 coronavirus pandemic, as M&A deals stall.
Deals signed in 2020 show private M&A market practice has adjusted to this landscape.
New foreign direct investment controls unveiled across the globe, accelerated by Covid-19 coronavirus.
Covid-19 coronavirus has profound impact in U.S., Europe and China - how will M&A recover?
Increased digital transformation will drive deals and collaborations in retail, fintech and life sciences sectors.

drop in global deal value

drop in global deal volume

drop in megadeals USD10bn+

drop in cross-border deal activity

drop in global deal value

drop in global deal volume

drop in megadeals USD10bn+

drop in cross-border deal activity

Watch: Key trends for H1 2020

Global deal flows

European M&A set for tough autumn

The pandemic has forced investors to take a safety first approach, which is likely to persist with the prospect of a hard Brexit looming.

A major road junction with very few cars

China maintains outward-looking approach

A determination to remain international and outward-looking will help the recovery in Chinese outbound and inbound investment.

U.S. M&A encounters challenges

The impact on U.S. transactions has been severe, with activity unlikely to recover until valuations and financial market conditions stabilise.

Global deal flows

Although the pandemic has had a profound impact on transactions across all regions, deal activity could recover strongly as the outlook becomes clearer.

M&A analysis by sector

A drop of liquid falling into a test tube

Pipeline gaps and digital will drive life sciences deals

The race to develop vaccines has put the sector centre-stage during the crisis, but left gaps in other R&D programmes that will be filled by M&A.

Person holding a selection of multicoloured shopping bags

Traditional retail faces fight for survival

The pandemic has severely damaged retail with lasting effects, but digital transformation and distressed deals are on the cards.

Coding and a password login on a computer screen

Fintech deals enter temporary lull after Q1 surge

Strategic, high-value deals will likely resurface, after a temporary halt to the Q1 surge.

M&A analysis by sector

A common theme arising out of the current crisis is the rapid acceleration of trends that were already in play. Nowhere is this more evident than in digital transformation.