If the business has a favourable long term outlook irrespective of uncertain market conditions (which may be a temporary issue), it may be a good opportunity for large firms which have economies of scale and better capital adequacy to potentially acquire a smaller firm at a competitive valuation, thus taking advantage of the situation. However, if the uncertain market conditions are expected to persist in long term and may permanently have a downward impact on the business in which the firms operate, M&A activity comes with a risk even for larger firms and needs to evaluated with caution.
