The COVID-19 Pandemic: Potential M&A Transaction Issues & The Way Forward

This year began with a strong economy and an improving middle-market M&A environment. There was a significant increase in M&A activity as many business owners, reacting to the strong economy and excellent business conditions, began developing ownership transition plans. For some, this included the sale of their company.

However, as it became clear that the novel coronavirus (“COVID-19”) could not be contained, a worldwide panic set in almost overnight, causing a significant decline in global financial markets and some of the highest market volatility in history. In the U.S., in an effort to “flatten the curve” – or reduce the spread of the virus and avoid overwhelming the healthcare system with patients – all but essential business activities were ordered closed by local, state and federal governments. Overnight, businesses that were excelling prior to the pandemic were put into jeopardy as their revenues and operations were affected by the forced closures. Unlike the Great Recession, where the market calamity started with bad business decisions and mismanagement issues, these events were forced on business by all levels of government.

Terrel Bressler is a Managing Director at Prairie Capital Advisors, Inc. He can be contacted at 312.348.1323 or by email:

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