COVID-19 Impact on Domestic Middle Market Mergers & Acquisitions

By Lyle Wallace and Joanne Baginski

The continued unfolding of the COVID-19 pandemic has already had a massive impact on the global economy and the economy of the United States. Businesses across almost every industry have been adversely impacted by the consequences of social distancing and state and local shelter-in-place requirements. Unemployment numbers have skyrocketed. Consumer demand has begun to plummet as mass layoffs occur and consumers struggle to pay for even basic necessities. With commerce largely at a standstill, mergers and acquisitions activity is also slowing significantly as companies and private equity groups struggle to understand the impact of COVID-19 on (i) transactions that have already closed, (ii) transactions that have been signed but not yet closed, and (iii) transactions that are currently being negotiated. This article reviews some of the consequences and considerations with respect to mergers and acquisitions transactions in light of the COVID-19 pandemic and potential opportunities resulting from COVID-19 disruption.

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©2020 Sherman & Howard L.L.C. and Plante Moran have prepared this newsletter to provide general information on recent developments that may be of interest. This advisory does not provide specific advice or for any explicit situation and does not create an advisor-client relationship between any reader and the firms.