Executives see M&A as a path to resiliency and post-COVID prosperity

A pandemic that turned “supply chain” into a household phrase is driving mid-market companies to rethink fundamental operations and look to M&A to become stronger and realign for the future. Among 487 executives surveyed globally as part of a Harvard Business Review Analytic Services studysponsored by Oaklins, 86% agreed that companies are reassessing supply chains and product distribution as a direct result of COVID-19. That sentiment was particularly strong among Asian Pacific executives (93%) followed by those in North America (83%) and Europe (82%).

86% of mid-market executives agree the pandemic has led companies to reassess their supply chains and product distribution – which in turn is driving M&A

When asked to predict drivers for M&A deals in their own industries over the next two years, the top reason respondents cited (at 50%) was the need to pivot to new lines of business in order to operate in “the new normal.” Other reasons included acquiring new technologies (47%) and snapping up good companies whose operations have suffered during the crisis (43%).

#1 driver for M&A in respondents' industries: Pivoting to new business lines to operate in the new normal

​​Such urgencies have helped propel the M&A market from near dormancy in the early days of the pandemic to one of the most active on record. In the months ahead, as mid-market companies continue to assess their options, the search for resiliency will likely lead more businesses to consider strategic deals to maintain their competitive edge in a post-pandemic economy.

For a closer look at key trends driving mergers and acquisitions in today’s fast-changing environment, read the full report by Harvard Business Review Analytic Services, “A New Vision for How Organizations Can Use M&A to Adapt to a Post-Pandemic Economy”. And reach out to Oaklins to discuss how these trends could affect your own business.

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