The Coronavirus Crisis' Effect on Mergers and Acquisitions Activity

  • Unique Paper ID: 153267
  • Volume: 8
  • Issue: 6
  • PageNo: 247-253
  • Abstract:
  • The majority of economic downturns have been caused by chronic inefficiencies. Mergers and acquisitions are considered popular ways to speed up the execution of a company's inorganic growth strategy. The Coronavirus crisis is, first and foremost, a health crisis. The disease's progression is likely to be the most crucial factor in deciding the duration of the decline and, as a result, the best M&A window. But, this Coronavirus outbreak has put the global market disruption caused by the worldwide lockdown has not only forced business to reset but has also driven thousands of businesses into bankruptcy. To ensure market continuity, many would recommend restructuring. During the unprecedented Covid-19 crisis, the M&A industry saw a drop in deal value and volume, as well as delays in regulatory approvals, travel restrictions (for onsite Due Diligence), and acquisition funding delays. Deals are typically calculated based on the majority of turnover figures, which are difficult to predict in the current environment, causing target company valuations to impact negatively. M&A will enable corporations to gaze into a future filled with technology and structurally different business models as they prepare for the boom that will follow this downturn. This paper aim is challenges faced by M&A dealmakers due to the COVID-19 breakout and provide recommendations.

Copyright & License

Copyright © 2025 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

BibTeX

@article{153267,
        author = {Dr. Maneesh Kumar  and Rahul Pal},
        title = {The Coronavirus Crisis' Effect on Mergers and Acquisitions Activity},
        journal = {International Journal of Innovative Research in Technology},
        year = {},
        volume = {8},
        number = {6},
        pages = {247-253},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=153267},
        abstract = {The majority of economic downturns have been caused by chronic inefficiencies. Mergers and acquisitions are considered popular ways to speed up the execution of a company's inorganic growth strategy. The Coronavirus crisis is, first and foremost, a health crisis. The disease's progression is likely to be the most crucial factor in deciding the duration of the decline and, as a result, the best M&A window. But, this Coronavirus outbreak has put the global market disruption caused by the worldwide lockdown has not only forced business to reset but has also driven thousands of businesses into bankruptcy. To ensure market continuity, many would recommend restructuring. During the unprecedented Covid-19 crisis, the M&A industry saw a drop in deal value and volume, as well as delays in regulatory approvals, travel restrictions (for onsite Due Diligence), and acquisition funding delays. Deals are typically calculated based on the majority of turnover figures, which are difficult to predict in the current environment, causing target company valuations to impact negatively. M&A will enable corporations to gaze into a future filled with technology and structurally different business models as they prepare for the boom that will follow this downturn. This paper aim is challenges faced by M&A dealmakers due to the COVID-19 breakout and provide recommendations.},
        keywords = {Merger and Acquisition, Coronavirus, lockdown, Due diligence, Company  Valuation },
        month = {},
        }

Cite This Article

  • ISSN: 2349-6002
  • Volume: 8
  • Issue: 6
  • PageNo: 247-253

The Coronavirus Crisis' Effect on Mergers and Acquisitions Activity

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