Logistics of Deal-Making during a Pandemic

How has COVID-19 impacted the deals being done in 2020?

How has the COVID-19 pandemic affected your ability to execute meetings and deals?

COVID-19 is clearly affecting partnering and deal-making discussions, with around half of respondents conducting fewer meetings and executing fewer deals. This contrasts the small minority – 18% and 11% – who have experienced a pandemic-related boost in their activity. Respondents portray a greater effect – positive or negative – on their meeting activity, but less of an effect on deals. This reflects the fact that timelines can often be lengthy and extend beyond the current duration of the pandemic.

How do you expect deal-making timelines to change as a result of the pandemic?

The longer the pandemic lasts, the greater its effect on deal-making is likely to become. The majority of respondents – 54% – expect timelines to lengthen as a result of associated social distancing and reduced mobility. Despite the potential benefits of remote interactions, only 16% suggested that these will translate into more rapid negotiations.

What are the biggest benefits associated with remote interactions?

What are the biggest challenges associated with remote interactions?

90% of surveyed deal-makers saw benefits to the transition to remote interactions, citing reduced travel as the most important of these, ahead of reduced costs and greater availability. The lack of personal connection is comfortably the largest barrier to conducting successful virtual discussions, as highlighted by 79% of respondents. This exceeds more practical hurdles such as due diligence, time zones and overcoming technological limitations, while maintaining a healthy work/life balance was also cited by 27%.

How do you expect the typical post-pandemic deal negotiation to be structured?

Despite the challenges associated with virtual deal-making, 90% of respondents will incorporate either a predominantly or entirely virtual structure. The bias towards an entirely virtual structure is strongest in North America, peaking at 47%, suggesting greater acceptability and willingness to engage remotely. As might be expected, cultural preferences in Asia point towards a preference for in-person interactions, as noted by 27% of the participants in this region.