Businesses should be prepared to take advantage of opportunities due to the economic downturn as deal premiums likely reduce and assets become available.
The Harvard Business Review examined evidence from the 2007-2009 global financial crisis that showed companies that made significant acquisitions outperformed those that did not. From January 2007 to January 2010, the average total shareholder return was 10.5% for active acquirers compared with 3.3% for less active companies.
Making the most of M&A opportunities requires thinking strategically now about what business models will succeed in various post-Covid-19 recovery scenarios as supply chains are reorganised, cybersecurity threats increase and strong balance sheets become ever more crucial.
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