HLB Van Daal

Merger and acquisition (M&A) market during corona crisis

Merger and acquisition (M&A) market during corona crisis

Due to corona, there is a lot less activity in the merger and acquisition (M&A) market than before. Many acquisitions have been placed on hold because of the uncertainty in the market. Acquisitions still take place in sectors that are affected more lightly by corona, or that are not affected at all. Additionally, the first priority is to survive this period. The trend that we see now, is that entrepreneurs are starting to focus on the future again. Even in these hard times, there are still investors willing to invest. How can you, as an entrepreneur, get in touch with these parties? We will gladly help you!

Even in these times, 'informal investors' are still willing to invest in the take-over market, and private equity parties (who have sufficient 'dry power', i.e. unspent cash, and a need for above-average returns) are still looking for interesting investment opportunities. Strategic parties, such as competitors and/or suppliers/buyers, may also be interested. This may be an opportunity to safeguard your company's continuity in the short term, or even to expand your activities.

How can you, as an entrepreneur, get in touch with these parties?

We perform search activities to find potential buyers and/or strategic partners for your company. A partial sale is possible as well, in which case a party contributes part of the risk capital in addition to equity (possibly as an addition to existing bank financing). Of course, you could also be interested in acquiring a company yourself. Your company is doing "well" during the crisis and you expect that it will not be (excessively) affected by corona. This gives you financial opportunities to invest in other companies. One option is to acquire a promising company in the same branch as yours or in a different one. In that case, the target is often a company that suffered a (hard) financial blow or whose perspective has changed because of the crisis, which might make a sale an attractive option. Similar parties could also consider a joint venture on the pretext of "together we are strong". Searching for potential targets is another service we provide.

Do you have any questions?

Contact drs. B. (Bart) de Volder RV, M&A advisor immediately at HLB Van Daal in Waalwijk.

Send an email or call +31 (0)416 41 00 00
drs. B. (Bart) de Volder RV