Data from Willis Towers Watson (US:WLTW) indicates mergers and acquisitions (M&A) activity in North America has been most squeezed by the Covid-19 pandemic. Across the Atlantic, 137 deals worth more than $100m (£80m) each were completed in the first half of 2020, versus 188 in the same period a year earlier. This is the lowest number of transactions completed in the region over a six-month period since 2009.
Other areas of the world have thus far been more resilient, with Europe seeing more deals go through by the end of June than in 2019.
As with previous crises, companies are now likely to be on the hunt for distressed operators and opportunities to pick up non-core divestments at bargain prices. But David Hunt, senior director of human capital and benefits at Willis Towers Watson, has cautioned that negotiations could take longer, “acquirers will need to be prepared for the duration and depth of their due diligence to increase”.
