The coronavirus has seen the fall of industry giants across the world. Statistically, the number of businesses that have filed for bankruptcy stands at an all-time high. An early retirement package is an option that many employees have considered and taken in fear of the post covid era. Millions have lost their daily wages, and businesses globally continue to experience reduced demand for their products.

Small businesses in the US have witnessed an unprecedented collapse, with over 41% dying off. Globally, businesses’ closure due to governments’ policy changes has seen a sharp fall in demand for products and services. Most of the closures will be permanent as the remaining businesses struggle to pay ongoing expenses during the lockdown. Statistics show that from February last year through to April of 2021, coronavirus’s effects on small businesses in the United States will affect small enterprises. By April 2020, over 41% of companies were already closed.

For large businesses, the effects of coronavirus are detrimental to their complex structures. Companies have to change their business models to survive the next decade. We have seen significant financial corporations merge. Mammoth companies have acquired competitors in the market. In boardrooms, mergers and acquisition experts are facing more enormous risks in light of the prevailing environment. The top merger and acquisition risks that one needs to be aware of include overpaying companies targeted for acquisition, overestimating potential synergies, and downplaying the different cultures merging into one.

According to a Forbes assessment of mergers and acquisitions’ success rate, M&As fail to create value to shareholders 70 – 90 percent of the time. Aligning your company’s goals with the merger or acquisition objectives is step one in analyzing potential gain in value. Exploring alternative options that can achieve the same benefit often leads to a better decision.

A survey published by Mckinsey consulting revealed that over 25% of management overestimate the post-deal synergies in mergers and acquisitions. Streamlines workforce coupled with shared distribution and intellectual properties will lead management down the wrong road if not well analyzed. Remaining conservative with expected synergies works in your favor should the merger or acquisition not yield the expected synergies. Arguably in mergers and acquisitions, the most critical asset is the people because they help the companies achieve goals and objectives.