In Focus (#5-6 May-June 2020)

The New “Normal”

The pandemic spring of 2020 entailed a widespread pause in global M&A activity. Countries have tightened their borders, while decision-makers are not able to travel and explore investment opportunities. The traditional M&A market has certainly been disrupted, experiencing specific consequences across industries. Many sectors, for example, travel, hospitality and aviation transport, faced severe drops, which may result in consolidations and solvencies.

At first glance, we observed regulatory delays on pending deals and new contents for performing due diligence and its timelines. Another noted trend will be an increase in debt-to-equity swaps and hostile takeovers. Conversely, forward-looking acquirors and risk-taking investors have already been looking to find lucrative distressed assets since March. In the mean tlme, big risks mean that buyers have an increased need for security. Business has to adapt to the so-called new normal.

This situation forced us to provide a broader view on the topic. We understand that Ukraine has to respond very quickly to relaunch its economy and propose ways of turning weaknesses into opportunities.

 

Happy reading,
Olga Usenko

 

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