Article:

Navigating M&A deal activity during and post COVID-19 in Western Australia

21 April 2020

Justin Boyce Cam, Partner, Corporate Finance |

At the end of 2019, the outlook for M&A was predicted to be strong for 2020. Enter COVID-19.

Since the outbreak of the virus the impact to business confidence and the deal environment globally, has been extraordinary. The unpredictability of the current situation will inevitably see business owners focusing on business continuity and any inorganic M&A activity taking a back seat.

Nonetheless, the impact of the virus may result in M&A activity increasing globally. Particularly in areas including capital raising, acquisition opportunities and insolvency opportunities. For businesses with strong balance sheets and cash reserves the crisis proposes unexpected opportunity, to execute on strategically significant deals, at reduced valuations.

Most conventional M&A tactics may become irrelevant in the current circumstances. Those businesses that proactively plan, strengthen deal capabilities and engage with perceptive advisors can emerge stronger and create value for shareholders in the long-term.

At BDO we believe a balanced approach to business continuity planning combined with a disciplined approach to M&A could be mutually beneficial to both buyers and sellers. We have compiled a guide of important things to consider when navigating your M&A strategy and a list of the top four areas of focus to pave the way forward. Read more in our article, Navigating M&A Deal Activity During and Post COVID-19 within Western Australia.

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