Global Head of M&A Frank Aquila Offers Insight on How Coronavirus Impacts Dealmaking

March 23, 2020

Frank Aquila, S&C’s global head of M&A, was interviewed by two leading business publications on how the Covid-19 outbreak is affecting dealmaking. In a discussion with the Financial Times, Frank explained why material adverse change (MAC) clauses may not let parties walk away from agreed-upon deals. “Asserting a MAC walkaway generally requires that the negative financial impact is unique to the company being acquired with a long-term impact on the business,” Frank said. “Covid-19 is impacting the global economy, so it would be extremely difficult to show that it’s specific to a particular company.” To read the full article, click here. Frank also recently spoke with MarketWatch about the difficulties of triggering MAC clauses—to read that article, click here. Frank also recorded a podcast on what dealmakers need to know about Covid-19, available here.
In an interview with Law360, Frank explained the similarities and differences that he sees between the coronavirus pandemic and previous crises, such as the 2008 global financial crisis, the September 11 terror attacks, and the dot-com bubble in 2000. “There is a certain cadence to how major crises play out, at least with respect to the financial markets and the M&A market,” he said. “I have to believe that what we have seen in the past will apply here as well, assuming that the [U.S.] government, and governments around the world, do what is necessary to make sure there’s liquidity in the market—that they put together the right economic incentives so that the U.S. and global economy rebound relatively quickly.”

To read the full article, click here.