BCG’s first M&A Pulse Check survey finds that deal makers have a bearish view on M&A for the remainder of 2020 and into 2021. Many expect a prolonged period of low volume and depressed deal prices. However, they see attractive opportunities in this environment and many are planning to give greater emphasis to non-traditional deals. Importantly, they recognize that success requires understanding the complexity of the current context and taking a holistic and thoughtful perspective.

1. COVID-19
M&A Pulse Check
The New Reality
Survey conducted May and June 2020

2. 1
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Exhibit 1: Respondents Do Not Expect a Quick Rebound in Deal Volume
Sources: Thomson Reuters, BCG M&A Pulse Check Survey May/June 2020 (in total ~140 participants)
1. n=94 2. n=93 3. n=93
Approximately 75% of respondents expect deal
volumes to decline by 10% or more in 2020
compared with 2019 (45% expect -20% or worse)1
Globally announced M&A deals Survey respondents' view of M&A trajectory
Approximately 60% of respondents expect deal
prices to decline by 10% or more in 2020
compared with 20192
Approximately 65% of respondents expect
market volume growth to turnaround no earlier
than 2021 (45% expect turnaround in H1 2021)3
0
2
300
100
400
0
200
1
3
4
Oct
19
Deal value ($ billion) Deal volume (# thousands)
Dec
19
Feb
20
Jan
20
Jan
19
Apr
19
May
19
Jun
19
Jul
19
Aug
19
Sep
19
Nov
19
Mar
20
Apr
20
Feb
19
Mar
19
-81%
Deal volume (# thousands) Deal value ($ billion)

3. 2
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Exhibit 2: Respondents See Potential Opportunities in the Downturn
17
40
31
100
7
5
30
22
33
7
100
9
Much worse
Much better
Neutral
Better
Worse Very experienced
No experience
Neutral
Experienced
Little experience
Decision makers
recognize the value
potential of deal
making in a weak
economy, but most
lack experience in
downturn M&A
Source: BCG M&A Pulse Check Survey May/June 2020 (in total ~140 participants)
1. Respondents asked to scale on range of 1=much worse to 5=much better; n=83
2. Respondents asked to scale on range of 1=no experience to 5=very experienced; n=88
~75% see
potential in
downturn
M&A
~85% lack
experience
Value creation of
downturn deals vs.
"normal" deals
(% of respondents)1
Experience of company
in downturn M&A
(% of respondents)2

4. 3
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Exhibit 3: Many are Active on the Buy-side, Especially Non-Traditional Deals
Source: BCG M&A Pulse Check Survey May/June 2020 (in total ~140 participants)
Note: We asked the most active respondents to provide motivations for ramping-up activity.
1. n=103 2. n=103; 10% of respondents selecting n/a
Companies’ M&A activity levels during
the Covid-19 crisis
maintain or increase buy-
side activity1~70%
Adherence to pre-crisis strategic plan1
Opportunities from low valuations2
Unique targets coming to market due to the crisis3
The top-3 motivations of the most active
companies
maintain or increase current
activity in joint ventures,
strategic alliances, and
other non-traditional
deals2
~75%
Adherence to pre-crisis strategic plan1
Attractive alternative to "regular" M&A2
De-risking3

5. 4
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Exhibit 4: Respondents See Changes in M&A Market and Their Own Approach
Top-3 changes to companies’ approach to
M&A during Covid-19 crisis2
Top-3 changes and intricacies in the M&A
market during Covid-19 crisis, as seen by
respondents1
Source: BCG M&A Pulse Check Survey May/June 2020 (in total ~140 participants)
Note: Respondents were able to select several options.
1. n=95 2. n=96
observed valuations being
renegotiated73%
observed deals being pulled
67%
observed signing and/or
closing postponed55%
increased focus on small “string-
of-pearls” transactions42%
increased emphasis on non-
traditional deals (e.g., JVs,
strategic alliances, minorities)
42%
put stronger focus on
understanding opportunities in
new areas
36%

6. 5
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Covid-19 Disclaimer
The situation surrounding COVID-19 is dynamic and rapidly evolving, on a daily basis.
Although we have taken great care prior to producing this presentation, it represents
BCG’s view at a particular point in time. This presentation is not intended to: (i)
constitute medical or safety advice, nor be a substitute for the same; nor (ii) be seen
as a formal endorsement or recommendation of a particular response. As such you
are advised to make your own assessment as to the appropriate course of action to
take, using this presentation as guidance. Please carefully consider local laws and
guidance in your area, particularly the most recent advice issued by your local (and
national) health authorities, before making any decision.