Global trends in private M&A: Covid-19 update
19 June 2020
We have recently produced an updated client presentation on global trends in private M&A. Over the last eight years, we have analysed almost 1,300 private M&A deals that Allen & Overy advised on globally, looking at deal dynamics, execution risks and deal terms.
Usually we report on M&A trends annually, but the Covid-19 pandemic has brought about such significant changes in market practice that we have released a special edition of our presentation on global trends in private M&A comparing deals signed in the first five months of 2020 with those signed in 2019 and previous years.
Key trends include:
- Dramatic slow-down in M&A activity and buy-side competition
- Deal structures changing with slight uptick in distressed M&A
- Pre-Covid deals in heavily impacted sectors unravelling
- Sellers now have laser focus on execution risk
- Governments and regulators moving the goalposts
- Valuation challenges turn pricing structures on their head
- Significant movement in warranty packages
Please speak to your usual Allen & Overy contact if you would like to schedule a briefing on these trends.