An informal interview between Clinton Lee and Jonathan Lea as they discuss both the marketing and legal processes involved in successfully completing a transaction in the current Covid-19 economic climate.
Some of the topics which will be covered are:
• The marketing processes
• Due diligence and the legal process
• The impact of the lockdown period and Coronavirus
• Acquisition finance, including the use of CBILS
• Financial forecasts
• Making companies more resilient and versatile
We will focus on the acquisition of businesses in a downturn, looking more closely as "practical" issues specific to M&A in a downturn. On the buy-side, for example, how has the downturn affected deal sourcing? Has it become more difficult? Does one need to look for different attributes to what may have sought previously? On the sell side, has it more become more difficult finding buyers? Is a different approach required to generate the right type of buyer? Does one need to do the vetting of buyers differently?
For both sides, there's the obvious question of whether this is even the right time to be doing a deal and what should one be doing differently, deal wise, in this environment. More cash? More deferred payments / earn outs?