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M&A Deals Increase in the Second Half as Companies Strive to Stay Afloat | India News


Global mergers and acquisitions (M&A) activity fell back from lows of nearly a decade in 2020, facing the pandemic with a series of large transactions in the second half of the year that negotiators expect to continue.
Transaction volumes are now down about 6% over the year to $ 3.5 trillion, according to data compiled by Bloomberg. Still, the fact that around two-thirds of them were signed since early July has advisers talking of a dramatic comeback, after the first half of 2020 froze mergers and acquisitions and curtailed deal activity in America. of the North more than 50%.
The way transactions were conducted also changed, as bidders flew drones to conduct due diligence and the head of a UK pharmaceutical giant signed his biggest deal while he was quarantined in a hotel room in Australia. Globe-trotting bankers switched to video calling, either from home or from nearly empty offices.
The advisers described 2020 as a tale of two very different halves. “We saw a sharp drop in M&A activity after the outbreak of the pandemic, but then a very strong recovery in the second half of the year,” said Berthold Fuerst of Deutsche Bank.
As the pandemic shuttered cities in the first quarter, chaos left CEOs too busy to make acquisitions, and trading got off to the slowest start since 2013. Rather than opportunistic mergers, most deals were finalized They helped companies stay afloat, especially the travel, hospitality and entertainment businesses were hit hard by the lockdowns. Airlines sought federal help while others secured private equity investments.

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