As with most business operations, the onset of the coronavirus crisis initially halted M&A activity worldwide, with quarterly deal figures plummeting to 7-year lows. However, as organizations globally quickly realized that they’d need to find inorganic ways to survive, stabilize, or grow, deal activity quickly bounced back, with companies recognizing M&A opportunities as a relatively low-risk means to survival and, eventually, success.
Across industries, several organizations have turned to M&A opportunities to expand their current market share, operations, talent, and technology stacks in order to build business resilience in the face of volatile markets and evolving regulations. For many, consolidation was simply a fast, fight-or-flight reaction to the crisis — a way to sustain growth in increasingly competitive and, in some cases, smaller markets.
In addition to this, with low interest rates and relatively accommodating capital markets, current global conditions continue to be conducive to the acceleration in acquisitions. Perhaps predictably, companies looking to enter crucial deals now are increasing their focus on deeply thorough and careful due diligence exercises, including close analysis of target companies’ financial stability and overall business outlook.
Cedar’s global experience in assisting clients across industries in growing organically, has equipped our teams with best-in-class tools and methodologies needed to provide expert support across your corporate finance processes, including due diligence, M&A, and post-merger integration activities.