Recession and Vaccine Outlook Likely to Spur Private Mergers and Acquisitions Activity in 2021
As 2020 draws to a close, many private companies in our region are struggling to maintain profits and remain viable during the severe recession caused by the pandemic. With several promising vaccines for the COVID-19 virus becoming available now, most business leaders believe that the pandemic will end this summer and the economy will rebound sharply in the second half of 2021. For many businesses, however, this may be too late. Private mergers and acquisitions activity in the Hudson Valley likely will accelerate in 2021 as local business owners evaluate the viability of their companies as currently structured and operated in the post-pandemic business environment. Some will be able to reconfigure business operations and others will seek to enter into corporate restructurings with competitors to survive, or to salvage remaining assets and good will value.
Local business conditions are affected by national issues and trends. The Biden administration is seeking to raise corporate and estate taxes, the likelihood of which hinges on which party retains control of the U.S. Senate. According to a recent study by Deloitte, 61% of U.S. dealmakers expect M&A activity to return to pre-COVID levels within the next 12 months. See, https://www2.deloitte.com/us/en/pages/mergers-and-acquisitions/articles/m-a-trends-report.html. Many perceive pent-up demand, the need for business restructuring and high savings levels as conditions for an extremely active private mergers and acquisitions market in the second quarter of next year.
The Corporate Practice group at Bleakley, Platt & Schmidt is ready to assist business owners evaluate their options in light of this uncertain environment and the fiscal and business carnage left by the pandemic. Our firm has represented closely-held businesses in the Hudson Valley for over 85 years and offers high caliber representation at competitive rates. We coordinate our representation among various practice areas that are implicated in private mergers and acquisitions, such as corporate finance, employment and labor law, trusts and estates, intellectual property and litigation. In addition, we offer experienced business counsel in alternatives to traditional merger and acquisition transactions, such as strategic contracts, joint ventures and partnerships. Joint ventures and strategic partnerships can enable businesses to reposition themselves to respond successfully to changed business environments without owners losing control of their companies or selling or diluting their equity.
Our experienced attorneys provide counseling and representation in corporate finance, partnership matters, joint ventures, corporate restructurings, private mergers and acquisitions transactions and venture capital. To read more about our corporate law services, click here. Let our team of expert corporate law attorneys assist you and navigate your business through these challenging times. Call us today at 914-949-2700.