Category: Business News
Thommessen has been involved in more Norwegian M&A transactions in 2020 than any other law firm according to Mergermarket. The market remains sluggish, and in this update, we are offering our thoughts on M&A deal activity ahead, as well as the potential impact of the current environment on M&A negotiations and deal-making.
The outbreak of Covid-19 has weighed heavily on the level of M&A activity. Deal-making is hampered by lack of risk appetite fuelled by difficulties in valuing businesses in times of operational disruption and uncertainty of new waves and restrictions. A buyer may struggle to become comfortable with its own valuation of the target, and it may be difficult to get the seller to agree to the purchase price that eventually is proposed. Further, even if the two parties should have a meeting of minds, the buyer may run into difficulties if the transaction relies on third-party financing since a lender may have its own views and reservations on the valuation.
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Published: March 25, 2023