M&A Chair Examines COVID-19 Economic Downturn Impact on M&A and Strategic Buyers
Mergers & acquisitions partner Paul Scrivano (San Francisco) was quoted in a Connecticut Financial News (CTFN) article that discusses how hedge funds, private equity firms and strategic buyers are in early preparations for hostile takeovers and shareholder activism.
Paul explains that as the COVID-19 pandemic has spread throughout world potential hostile takeover target companies are being vigilant and proactively adopting poison pills. He notes that a company with a hostile buyer has the natural inclination to resist and is often successful. Hostile buyers risk market volatility, overvaluing companies and public scrutiny into their own business models.