Covid-19: 5 minute reading series

The unprecedented crisis generated by Covid-19 has impacted all sectors of the world economy. M&A executives and professionals – who expected a year of strong recovery –, had to adapt in order to maintain a legacy in the business. Mergers and acquisitions processes, such as due diligence analysis, suffered greatly during the period of social isolation.

However, despite the current scenario, deals that were already negotiated have been moving forward although slowly – and M&A records are expected to resume their pace from the second half of the year. In this phase, it is important to adopt two types of mergers and acquisitions strategies:  defensive, which can protect the company’s future; and offensive, which can accelerate the transformation of the business model.

Adapting to a new reality with total virtualization of the work environment was also a major challenge for mergers and acquisitions professionals. Planning, which has always been important in M&A, has taken on a fundamental role in the midst of the pandemic.

As in any challenging scenario, new opportunities arose for a crisis to be faced with confidence. Those who were able to focus on the core of their business and use the data generated during that period to understand what works for a company and identify strengths and gaps, certainly took the best editions of 2020.

To learn more about the topic, read the 5 minute reading series, developed by Deloitte.