COVID-19: M&A considerations

As the novel coronavirus (COVID-19) crisis continues to escalate, it has become clear that global M&A activity will likely face disruption. M&A transactions in the planning stage may be paused or abandoned, and there will be questions about whether announced transactions will proceed, and if so, on what terms and when.

The impact of COVID-19 could, however, also spur M&A activity, whether from opportunistic buyers, or from sellers or target companies looking to potential buyers as sources of financial support or in response to shareholder activism. Public company boards should revisit their takeover bid and activist preparedness plans with their advisers to ensure they will be able to effectively respond to a hostile takeover bid or shareholder activism campaign.