In a recent article by Tad Simons of Thomson Reuters, he says that the COVID-19 pandemic has shattered economies, disrupted supply chains, and generally caused a great deal of volatility and uncertainty in global capital markets, particularly for investors and companies trying to navigate the emerging landscape for mergers and acquisitions, IPOs, and other capital-intensive deals.

According to him, this has left numerous questions in many people’s mind as regards to what deal-making, corporate governance, and shareholder activism might look like over the next year to 18 months.

In a Reuters Newsmakers webinar, ‘What Will Change? Deal-Making In The Post-Pandemic Era,’ Thomson Reuters sponsored a forward-looking panel that discussed what deal-making, corporate governance, and shareholder activism might look like over the next year to 18 months. The panel was moderated by Rob Cox, editor of Reuters Breakingviews.

The “interim normal”

The abrupt and wide-ranging economic impacts of the COVID-19 pandemic have created a global guessing game about what is likely to happen and when, especially in regard to corporate behaviour in the post-pandemic era and investor confidence in their strategies. Lauren Silva Laughlin, Global Deals Editor for Reuters Breakingviews, opened the discussion by asking the panelists what they thought Wall Street and the general corporate landscape would look like in the next year or two.

“I am hoping that six months from now we will begin to have a return to normalcy, and that we will be getting people back in the workplace, but on a relatively muted basis,” said panelist Leon Kalvaria, Chairman of the Institutional Clients Group at Citigroup.

The presumption is that at some point in the not-too-distant future, capital markets will sort themselves out as economic activity increases, companies adapt, and a clearer picture of the future emerges. But trying to predict what will happen tomorrow based on what has happened in the past is especially difficult now, the panelists agreed, because of the unprecedented speed and scope of the crisis.

According to Barclays’ DeClark, however, investors today are more interested in companies that are well-positioned to respond to changes in the economy that will persist beyond the pandemic. “Whether its workplace collaboration, security, gaming, fitness, eating out, food delivery, or e-commerce, investors are more focused on things that will have a benefit in the post-COVID world,”.

When the “post-COVID” world will come about and what it will look like are anyone’s guess at the moment, but all panelists agreed that one enormous factor will be the fractured relationship between the U.S. and China. Companies that pinned their growth strategies on China are going to be sorely disappointed, as M&A activity into and out of China has all but stopped.

Furthermore, China is using the pandemic to move aggressively against Hong Kong, noted Katz, and in the absence of U.S. leadership, China is co-opting America’s traditional role as the benevolent “big brother” to other nations.

Much of what happens to corporations and capital markets in the coming year will depend on how long the COVID-19 crisis lasts, whether there are successive waves and lockdowns, and how the political situation in the U.S. unfolds pre and post-election.

Despite the inherent unpredictability of all these events and more, panelists were nevertheless hopeful that some good will emerge from the COVID-19 crisis. Better healthcare, a more robust social safety net, more work flexibility, more responsible corporate governance, more innovative use of technology — all were floated as reasons to hope that the future may actually be a bit brighter than it looks at the moment.”

For the full article, head over to: https://tmsnrt.rs/2NIgr3r

 

In Nigeria, we are also hopeful that much good will also emerge in the post pandemic era. The challenges that have bedevilled the legal profession have forced an inward look at itself and an openness to embracing solutions outside of the profession.

No one would have imagined that the use of technology within the profession will be this far reaching within such a short time.

The changes are here to stay and speed of adaptability is very critical to survival.

You need to totally re-strategize your survival plan to make it through the deep and sweeping changes going through the profession.

Legal practitioners must embrace the new and refine the old and make it work for their good.

Legalpedia is here to help you with your growth strategy especially as you try to navigate through the changes of the ‘new normal.’

How prepared are you? How positioned are you to survive and actually grow?

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Book a free consultation call with us today. We are here to help. Click here to book a FREE consultation call.