May 13, 2020
Company boards are preparing for hostile takeover activity amid what is expected to be a rise in M&A activity in the next stage of recovery from the COVID-19 crisis. Our M&A team has been providing commentary on this trend as it develops in the marketplace, including in a recent article which has been referenced in the Globe and Mail’s Report on Business.
The impact of COVID-19 on public company valuations may attract deep-pocketed investors looking to expand their portfolios during the downturn. Shareholder activists may also contribute to more M&A if activists choose to agitate for a transaction during this disrupted dealmaking environment. This expected increase in opportunistic transactions—including hostile takeovers—is explored by our M&A practice from the perspectives of both buyer and target boards in “Redefining M&A strategy for the post-pandemic world.”
The Globe and Mail’s coverage of current market activity draws from our commentary on how boards can prepare for this potential surge in hostile M&A, citing that “a company board should revisit its takeover bid and activist preparedness plan with its advisers to ensure it will be able to effectively respond to a hostile takeover bid or shareholder activism campaign.”
“Redefining M&A strategy for the post-pandemic world” is a part of the Q2 Torys Quarterly, which focuses on corporate recovery strategy. It was authored by John Emanoilidis, Karrin Powys-Lybbe, Guy Berman, Stefan Stauder, Omar Wakil, and Christopher Caparelli.