M&A activity in the consumer sector was significantly impacted at the start of 2020 by COVID-19 pandemic-related restrictions and the accompanying market slowdown. The resilience of the sector was on display during the latter part of 2020, however, as well-positioned strategic buyers were able to take advantage of their strong balance sheets and reduced equity valuations to execute acquisitions aimed at responding to rapidly changing consumer demands.
While M&A trends for the sector varied geographically, consumer companies around the world often turned to M&A as a tool to respond to the pandemic – focusing on targets that would allow the acquiror to diversify itssupply chain, digitize its customer interface, and broaden product offerings.
Hogan Lovells activities
In 2020, our Consumer industry sector produced a number of real time updates on COVID-19 to help clients navigate the rapidly changing governmental, legal, and regulatory landscape of the pandemic.
Our team launched an Environmental, Social, and Governance Guide which looks at business integrity and sustainability issues consumer companies must consider. Our Fashion & Luxury team contributed to the publication of Getting the Deal Through: Luxury & Fashion 2020, which reviews the laws, regulations, and common procedures governing the sector across a range of international jurisdictions.