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Dealmakers set to double-down amid downturn
Despite looming challenges over the next few months, dealmakers remain optimistic about the future of M&A activity, according to a new report.
Emma Musgrave
White & Case LLP has released the results of its global M&A sentiment tracker, revealing that leaders within the Asia-Pacific region expect robust activity for the remainder of 2020, even in the face of economic and geopolitical headlines.
“This sentiment suggests that many companies do not see the overall economic direction in their markets – or globally – as a likely constraint on their ability to pursue their M&A strategies,” said White & Case partner Alex Zhang, head of China and China M&A, based in Shanghai.
“That said, global markets are now focused on the widespread impact of the coronavirus, which may lead to an economic downturn being sooner than expected and could materially delay some M&A activity.
“Although companies, especially those that were already under pressure, would be significantly impacted by the current situation, a downturn won’t neutralise imperatives for strategic buyers, such as the need to acquire technology or enter a new market. In fact, many see a downturn as an opportunity, particularly if valuations come down as a result.
“Once businesses can evaluate the virus’ impact on the market and the situation has stabilised, it’s likely that we’ll see renewed optimism and M&A executives are more likely to lean in.”
Emma Musgrave
Emma Musgrave (née Ryan) is the managing editor, professional services at Momentum Media.
Emma has worked for Momentum Media since 2015, including five years spent as the editor of the company's legal brand - Lawyers Weekly. Throughout her time at Momentum, she has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
Prior to joining Momentum Media, Emma worked in breakfast radio, delivering news to the Central West region of NSW, before taking on a radio journalist role at Southern Cross Austereo, based in Townsville, North Queensland.
She holds a Bachelor of Communications (Journalism) degree from Charles Sturt University.
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