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Global trends in private M&A: Covid-19 update

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Meeus Dirk
Dirk Meeus

Partner and Global Co-Head, Corporate

Brussels

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Broadley David
David Broadley

Partner and Global Co-Head, Corporate

London

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Wall Elizabeth
Elizabeth Wall

PSL Cnsl/Head KH, Global Corp

London

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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.