M&A in times of COVID-19

Abstract

2020 would have been a remarkable year, even without the ongoing COVID-19 pandemic. Fiercely contested US presidential elections, the much-debated withdrawal of UK from the EU, simmering trade tensions between US and China, attempted restructuring of the Indian economy – any of these could have potentially impacted the regional and global economies. However, these factors pale in comparison to the impact of the COVID-19 pandemic on the world economy and financial markets. The wildly swinging stock markets and the erratic capital flows are a reflection of the impact of the pandemic on the real sectors of the economy and the deal-making activity therein. While M&A activity is primarily attempted for realizing synergies and pursuing inorganic growth, factors such as business & industry outlook, financing ease, liquidity, and investor optimism play important facilitating roles. Below is a brief discussion on the impact of the pandemic on global and regional M&A activity with a sharper focus on the trends in Healthcare, CR (Consumer & Retail), TMT (Technology, Media & Telecommunications) and FIG (Financial Institutions Group) sectors.