Mergers, Acquisitions, and COVID-19
Although I spend a lot of time thinking and writing about the impact of the COVID-19 pandemic, here is an angle that I had missed. Take six minutes of your time to watch this video by research industry pundit Bob Lederer. What you will learn is that as 2021 comes to an end, the pandemic is causing a significant amount of M&A activity. Established, well-funded marketing research stalwarts and venture capitalists are taking this opportunity to buy up, at discount prices, smaller organizations that were more negatively impacted by the pandemic. Interestingly, while many of these smaller organizations now lack the capital to expand or in some cases even to survive, many of them have technical expertise that can be used to turbocharge their larger counterparts.
Bottom Line. Which, as usual, got me to thinking. And wondering more generally what impact the pandemic has had, and is having, on the structures of other lines of business. Common sense tells me that, as in marketing research, the pandemic has provided well-capitalized organizations in many verticals with an opportunity to buy up weaker competitors at discount prices.
Is that phenomenon over or, as Bob seems to be intimating in this piece, is it just beginning???