By Adam Zohry, executive manager – Financial Advisory Department at Mazars in Poland
Covid-19 was declared by the World Health Organization (WHO) as global pandemic in March 2020. The first few months following that outbreak were marked by a strong level of economic uncertainty worldwide, with direct consequences on mergers and acquisitions (M&A). Some ongoing transactions were put on hold, other cancelled, buyers who had already signed an acquisition deal tried to renegotiate the terms of the agreement or even withdraw from it. At that time, the absolute priority of companies all over Europe (including the UK and Poland) was to ensure first that the resilience, protection and continuity of their business will be guaranteed, through appropriate crisis management procedures and decisions. From summer 2020, the M&A landscape began to improve significantly, with an increasing appetite for deal-making on the markets, and the pandemic crisis turning into an opportunity for many investors. Today, many lessons can be learned with respect to M&A transactions and related processes during that period.