While today’s experience is largely unprecedented, we have seen in fairly recent economic history (such as the “great recession” of 2008-09) the impact of global business disruption and have learned coping mechanisms that will help reduce, although of course not eliminate, the collateral damage.
This article originally appeared on Citybizlist as part of a series featuring Burns & Levinson attorneys helping businesses and individuals navigate the many challenges that COVID-19 presents.
The COVID-19 Crisis has created upheaval in every facet of business and the M&A market is no exception. The resulting wave of uncertainty will make closing M&A transactions very challenging for the remainder of 2020 and possibly beyond. The Burns & Levinson M&A practice group shares the following wisdom for buyers and sellers in the various stages of M&A transactions:
The economic effect of measures taken to control the spread of COVID-19 is going to have an adverse effect on many commercial borrowers. The magnitude of such effect will depend on the nature of the borrower’s business and how it is affected by the material disruption of supply chains, softening demand for goods and services, non-payment of receivables, and non-performance under contracts as the borrower or third parties may be unable or unwilling to fulfill obligations. Borrowers are reassessing budgets and forecasts, and actively seeking access to available debt capital.