Many economic activities have been impacted by COVID-19, mergers and acquisitions among them. With borders closed, travel restricted and face-to-face meetings impossible, transactions have slowed dramatically. But deals will resume.
In fact, the pandemic may create a wave of new deals as troubled companies look for exit strategies, investors poise for a market correction and companies that emerge healthier seek buyers.
Yet, in a post-pandemic world, where historical measures —such as market multiples and past cash flow—may no longer provide clues into future performance, how can buyers and sellers accurately gauge value and risk?