Digital M&A in the Time of COVID-19

COVID-19 has slowed the global economy on all fronts, and the M&A market is no exception.

With many deals being put on what is hopefully a brief pause, all potential acquirers are responding differently based on their resources, exposure to the effects of COVID and growth goals.

Here at Midaxo, we work with hundreds of companies across a variety of industries. That work spans all deal stages, as well as numerous corporate development initiatives.

While no two companies are the same, we are observing some common threads from our conversations with customers and prospects. Below are a few takeaways.

I have spoken to several customers whose expectation is a fast and furious acquisition market later in the year. With that in mind, they are reviewing their existing M&A processes and exploring ways to streamline, thinking about the best ways to get ahead during this holding pattern.

Doing so will allow them to clearly define roles and responsibilities, map out their process for different deal stages and ensure the workflow for each one is as efficient as possible.

Those taking advantage of an M&A software platform can also rest assured all the information is secure and readily accessible in one central location.

Use this lull to prepare so you can act quickly as things heat up again.

Given what’s going on around the world, it’s no surprise that many plans are on hold.

Alternatively, some companies are viewing these market conditions as a genuine advantage, even if the underlying reason is decidedly unwelcome. And they are not all private equity.

One customer sees enormous opportunity in the current conditions. That’s not the norm in terms of what we are hearing, but it also isn’t a complete aberration. Even something as significant as a pandemic won’t stop M&A activity when acquirers feel confident a deal will strengthen their position.

As many ride out the storm, others will still look to capitalize.

A lot has been written about the long-term implications of COVID on how we work. The future of commuting is just one example.

On our end, we have observed a spike in customer use of our digital M&A platform. Under normal circumstances, teams look to digitalize their M&A process to:

  • Standardize the M&A process
  • Improve visibility on deal progress
  • Gain insight into performance tracking
  • Accelerate the capture of synergies
  • Centralize the process to provide a single source of truth

Not only have I seen an increase in the utilization of our platform by existing clients, we are also seeing an increase in attendance of our best practice webinars, along with more interest in our array of M&A playbooks. Companies have had no choice other than to operate differently during the past couple months, and now having done so, many are already reexamining their business with new eyes.

It is worth noting that customers use Midaxo in a variety of ways, and not simply in acquisitions. One of the largest divestments ever was accomplished using our platform. Or maybe your organization is looking to consolidate offices after this is all over, and have more employees work remote. Midaxo has assisted customers with that initiative and can help your organization as well.

Think long-term even as short-term considerations are top of mind.

Reach Out to Us for More Information

If you need to get up to speed with your initiative management, we would love to help. Please reach out to your Account Manager, Platform Advisor, direct message me, or email for further discussion.

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