How Did Merger and Acquisition Process Changed in the Post-COVID-19 World

The pandemic of the previously unknown SARS-CoV-2 coronavirus. We have prepared a dossier with important information about the consequences of the virus.

The Changing of M&A Processes in Post-COVID-19

In 2021, the total volume of mergers and acquisitions (M&A) between companies worldwide decreased by 15% compared to 2021. Analysts at the Bain consulting company note that given the difficult situation in which global business finds itself due to the COVID-19 pandemic, the M&A market has shown a good level of resilience. Experts note that, in addition to the virus, the market was affected by friction between the United States and China and the increased attention of the authorities to foreign takeovers.

The confidence of foreign direct investors is being restored, who understand that they can work quite successfully in the existing conditions – this is manifested in a significant increase in portfolio investments in ruble-denominated assets, the yield of which is at an attractive level of 3%.

Investment in the transport and logistics infrastructure sector is one of the government’s top priorities in www.virtual-data-room.org. Almost half of the total budget of the national project’s program is intended for investments in the creation of road infrastructure; in the future, investments are planned in the construction of high-speed trains, railways, increasing the capacity of ports, as well as in the reconstruction of almost 50 regional airports.

COVID-19 and M&A Processes

M&A is one of the most important tools that governments can use to build more resilient, inclusive, and resilient economies. It is also an important tool for reducing inequality and building public confidence. The COVID-19 crisis has increased its importance.

Some form of cooperation between competitors is now required. This is essential to maintain or revive the production and supply of essential goods and services that have been severely affected by the crisis and the isolation and quarantine measures; and also to create new products. For example, competing pharmaceutical companies have agreed to collaborate on research and development to create vaccines. 

They have also developed collaborative agreements to supply drugs that are in urgent need. These forms of cooperation can be very beneficial to consumers and should be allowed as long as they do not result in malicious cartel restrictions on competition, such as price-fixing.

These growing cracks have deepened further with the coronavirus (COVID-19) pandemic hitting the most vulnerable populations the hardest:

  1. A worrying economic sign of the pandemic has been the striking discrepancy between the massive responses of developed country governments and the dire international response that is forcing many developing countries to seek answers and solutions. 
  2. The time has come to rectify this situation with a new international approach that will set us on the path to more fruitful globalization with a more sustainable form of multilateralism that can close these fault lines.
  3. Strong government policy responses to the COVID-19 pandemic are accelerating the renaissance of industrial policy and suggesting a paradigm shift when a government is needed that is more active in addressing development challenges. 
  4. The international community needs to develop a common approach to these trends in order for them to contribute.
  5. The pandemic is accelerating the transformation of global manufacturing towards shorter, regional, and more sustainable value chains. It also showed the limits of nationalism, hoping to tackle the problem on its own.
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