Reply To: During economic crisis deploying capital for M&A is a risk or opportunity?


The Ccovid-19 pandemia provides two options for companies who have the resources to go on a shopping spree:
1. There will be some great companies who do not have the cash resources anymore to keep up. They need at least an investor and/or strategic partner to survive the situation. Therefore, if the strategic fit is given and the cultural aspects are sound, I would advise to go for a deal, even if the financial aspects are not up to par.
2. The pandemia has sped up the trends in some industries – especially eg. e-Commerce. Due to this companies have to move quickly to be able to meet these demands. As developing new solutions is a time intensive process, it is easier to acquire another company that already offers the service/product you need.

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