COVID-19 Is Set To Unleash A Wave Of Corporate Mergers And Acquisitions
The vultures are already circling as Covid-19 leaves weaker companies in distress. Last week, when Boohoo, a British online fast-fashion retailer, reported stronger-than-expected earnings, it noted it had its eye on struggling rivals. “It is likely many opportunities will arise in the coming weeks and we will take a look at those and make an assessment on whether we can add value,” said Neil Catto, the company’s finance director. It won’t be the last company looking to pounce. Covid-19 has disrupted dealmaking as it has roiled financial markets and left firms trying to stabilize their businesses. But once the situation settles, it could unleash a wave of mergers and acquisitions as larger, well-capitalized players and private-equity groups use the opportunity to grab up companies left vulnerable by the crisis at bargain prices. Read more at Quartz.
