Covid-19 has become part of the legal M&A process, and
is having an impact on due diligence as well as law risks.
Dealmakers are adapting to an entirely new environment, with
deals taking longer to complete and in some cases having to be
revisited. While M&A has not come to a complete halt,
market participants expect that activity will remain down until
"For those deals which are still progressing, buyers and
sellers are now factoring Covid-19 into the legal process as
well as the valuation," said Herbert Smith Freehills partner,
Gavin Davies. In terms of diligence, there now needs to be a
focus on business continuity and the resilience of IT systems,
as well as employee measures, data protection compliance,
counterparty dependencies and relationships, and any government
support that is being accessed by the business. Any change of
law risk that the sector may be...