Given the inevitable impact of Covid-19 and now political unrest, how will companies view M&A deals? Will companies become more bearish about the future outlook or look at the current times as opportunities for growth.
I strongly believe that depends upon how one company is positioned during these strange times; i.e. cash-rich companies will continue to take-over struggling companies. The unrest caused due to political world leaders will act as a catalyst.
I would say that for these times, the company will be in the uncertain mode instead of they are able to predict the risk because the thing can change very fast without telling the company and the world leader might pressure the top management not to deal or deal the business
The current political climate will definitely make some M&A activity much more difficult. Take for example the Chinese acquisition of the German Kuka Robotics. The acquisition of a technology leader within the German Mittelstand by a large Chinese conglomerate was possible in the days when leading western nations were more upbeat on Chinese liberalization; however as the belief in the positive progression of Chinese liberalization has faded so has the acceptance for such deals.
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