CFO Research and Vistra have released new data about how acquisition plans are being affected by the COVID-19 pandemic.
Despite the health crisis and its impact on businesses, organizations are pushing ahead with acquisition plans, according to two new studies by CFO Research and sponsored Vistra, a global business services provider.
Before the coronavirus crisis, nearly nine in 10 companies were considering expanding into new countries. In April, as the effects of the pandemic were being realized across the globe, expansion plans weren’t sidelined. Only 8% of respondents said they were delaying acquisitions or takeovers as a means to shore up budgets.
According to the research, 92% of multinational corporations ($100 million-plus) with plans for acquisitions and takeovers before the pandemic are pushing ahead with those plans, despite continued volatility in the global economy.
However, the findings also point to unmet operational and compliance needs that organizations will have to address:
- Nearly one-quarter of executives said they lacked insight and control over tax structuring when it came to cross-border operations
- 31% listed supply chain disruption as a major concern in April
- Six out of 10 companies were considering or engaged in reviews of their legal entity structures, with the goal of eliminating redundancies and inefficiencies to reduce risk and tax expenses in light of unprecedented market conditions.