Six Things You Need to Know About Life Sciences M&A During and After COVID-19

Arnall Golden Gregory LLP
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While life sciences M&A activity soared to a new high in 2019, the uncertainty surrounding the pandemic has led to a slow down in deal making activity. However, as the crisis in the U.S. subsides and the U.S. economy stabilizes, we expect life sciences deals to resume in the near term. Further, valuations for small to mid-size life sciences companies are likely to decrease, creating buying opportunities for strategic and financial buyers with access to capital. We also expect to see an increase in the use of alternative deal See more +
While life sciences M&A activity soared to a new high in 2019, the uncertainty surrounding the pandemic has led to a slow down in deal making activity. However, as the crisis in the U.S. subsides and the U.S. economy stabilizes, we expect life sciences deals to resume in the near term. Further, valuations for small to mid-size life sciences companies are likely to decrease, creating buying opportunities for strategic and financial buyers with access to capital. We also expect to see an increase in the use of alternative deal structures to accommodate sellers in need of capital. On the positive side, historically, the life sciences industry has weathered the storm of prior economic slowdowns better than many other industries.

In this on-demand webinar, AGG attorneys Brian A. Teras and Joel N. Gossner dived into six things you need to know about life sciences transactions during and after the COVID-19 pandemic:

- Deal structures in a distressed deal-making environment

- Due diligence considerations

- Reps and warranties

- Representation and warranty insurance for life sciences transactions (including COVID-19 considerations)

- Impact of the pandemic and economic crisis on interim operating covenants and conditions to closing

- Practical and logistical implications for closing deals

For any questions regarding this topic, you may contact Brian Teras (www.agg.com/brian-teras) or Joel Gossner (www.agg.com/joel-gossner).

For access to a curation of AGG’s legal alerts concerning COVID-19, please visit www.agg.com/news-insights/coronavirus. See less -

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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