Mergers & Acquisitions Challenges In The Wake Of COVID-19

In the past several weeks, the Canadian economy has felt the unprecedented impact of business interruption, employee layoffs, travel restrictions, and a reduction in consumer spending. With the rising uncertainty as to the duration of the COVID-19 outbreak and its corresponding economic disruption, questions have arisen regarding its potential impact on corporate mergers and acquisitions.  This blog post explores the following potential impacts of COVID-19 on pending and prospective corporate transaction:

• Should COVID-19 alter the letter of intent (LOI) in a corporate transaction?

• What are the possible effects of COVID-19 on the terms of an ongoing corporate transaction?