Redefining the role of M&A

The Future of M&A

As companies prepare for a new world with fundamentally reshaped economies and societies, the dealmaking environment is also changing. A combination of defensive and offensive M&A strategies are emerging as dealmakers aim to safeguard existing markets, accelerate recovery, and position themselves to capture market leadership.

Companies and industries propelled into survival mode by COVID-19 may turn to defensive M&A strategies in order to safeguard their future. Whereas companies and industries who have been able to ride the upswing in demand for new, digital operating models and services may utilize offensive M&A strategies in order to lay the groundwork to capture unassailable market leadership.

The definition of M&A is changing to now include a multi-faceted and a more expansive view of M&A in order to achieve a wider range of growth strategies. M&A alternatives, including alliances, partners, and joint ventures increase the strategic role M&A can play for businesses.

In order to create lasting value, deal making must reflect the new priorities of the post-crisis world. Key considerations now include: