Our firm, Lei Jiang LLC, started 2020 with a good volume of deals and mergers and acquisitions. We continue to handle variety of deals. In January, we successfully concluded an acquisition of a US college by a Canadian educational group. Then we put several deals together before COVID-19 spread in US. They included a recycling company’s expansion and acquisition and several restaurant acquisitions. Currently, we are in the midst of a Chinese metal company’s second phrase acquisition of a US company.
Even though COVID-19 pandemic slowed down M&A activity due to uncertainty in valuations and companies focusing on liquidity and cost efficiencies, we expect to see more activities in three categories taking place,
- Well-funded strategic buyers using this opportunity to build sizeable positions in targets and /or attempt takeovers of undervalued companies,
- Corporates selling or spinning off non-core assets to address liquidity, leverage and valuation issues,
- Investors contributing capital in exchange for significant equity stakes in businesses in need of a recapitalization or with liquidity constraints.
If anything can be learned from 2008-2009 financial crisis, we can expect a renewed use of equity as form of consideration for transactions among corporates. If you have any questions regarding M&A, please contact us. We specialize in international mergers and acquisitions and complex transactions.
For legal issues, please contact us.
© 2020 Copyright by Lei Jiang LLC. All rights reserved.