30 March 2020
Coronavirus (Covid-19) is likely to lead to a period of volatility and uncertainty in global and domestic markets, making settling valuation and pricing, and achieving deal certainty in M&A transactions, more challenging. Sellers are likely to have a valuation outlook that assumes a short period of uncertainty; Buyers may worry about an extended or deep period of uncertainty.
In this briefing, we look at some of the techniques within an M&A process that may be used by both sides to bridge a valuation gap or by a Buyer to retain some flexibility to walk away if the target business is more badly affected than expected.
Clifford Chance works in cooperation with Yegin Ciftci Attorney Partnership on Turkish law matters.