December 28, 2021 at 8:40 pm #52149Ali AlsudairiParticipant
From your perspective, how will Omicron Impact M&A?December 28, 2021 at 9:05 pm #52152Osamah BukhariParticipant
In my opinion the impact is currently limited, with businesses cautiously monitoring the developments.December 29, 2021 at 9:12 pm #52182Peggie ChanParticipant
Our biggest challenge is the negative impact on travel. Normally we spend a great deal of time in person with the acquired firm team members and our Workstreams. It’s critical to build strong relationships based on trust as early as possible. We’ve all seen how much can be accomplished virtually throughout the entire COVID situation, but Omicron is adding additional stress to an already stressful situation for an acquired firm. CheersDecember 31, 2021 at 1:44 pm #52230Ahmed AlhumaidParticipant
I think that COVID have made things hard to particular business sectors, but in terms of how it impacted M&A I think that it made it harder for investors to evaluate companies.January 8, 2022 at 4:42 pm #52428Karine BlaisParticipant
Here is an interesting article related to COVID-19: https://www.bcg.com/publications/2020/covid-impact-global-mergers-and-acquisitionsJanuary 20, 2022 at 3:20 pm #52820Greg JessupParticipant
I agree with the travel impact. Personal interaction is critical to forming relationships and trust through the integration process. HR onboarding, leadership meetings, and IT trainings done remotely do not have the same impact when done in person. Its a disadvantage for sure.March 6, 2022 at 7:37 pm #56875Ryan WrightParticipant
Pandemic risk is certainly higher in companies risk registries as they look at mergers and acquisitions, but at the end of the day, everyone’s just looking for a good deal. So the biggest impact I see is potentially more virtual due diligence than was previously carried out before moving into site visits, employee interviews, etc.March 7, 2022 at 10:01 pm #56914Tracei McLeodParticipant
In my opinion Omicron will have no impact on M&A, two years into Covid we learned to build and establish relationships virtual and close deals during lock down. in the US M&A blew past the US$2 trillion mark in 2021, ending the year more than 30 percent above the previous record set in 2015. US deal value reached US$2.6 trillion, twice the value of 2020, and volume set a new record at 7,896 transactions.March 13, 2022 at 11:43 am #57406Po HuangParticipant
Depending on the business you are in, it might be a good opportunity for M&A to purchase a valuable company at a discount if their market is negatively impacted by Omicron and in a need of financial support. For example, energy industry was negatively impacted in 2020 and lots of energy companies were losing money significantly. There were some consolidation happening in which big company acquired small one for consolidation.March 21, 2022 at 3:56 pm #57639Claire LeeParticipant
Bigger companies could leverage on Omicron and acquire smaller entities which may be impacted in the short run.
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