How is the French M&A market doing in the post-Covid period?

As the pandemic recedes, companies’ priorities are now growth and digital transformation. Indeed, during this period, many companies have become aware of their technological weaknesses. The main sectors affected by M&As are digital, communication, media, and web development, while health and home equipment sectors are booming. Also, as a result of the crisis, many restaurants and hotels are for sale today.

Main strategies of French companies

In this context, many private equities and companies are reviewing their activities and adopting an offensive strategy to diversify or to discover new markets. They are seeking to increase market share through external growth as quickly as possible by acquiring know-how without developing it internally, or generating growth by purchasing highly innovative companies. The digital sector is mainly impacted by this strategy. The second strategy is a defensive one, consisting of withdrawing from one business to refocus on another more successful one. M&As are an effective way of buying up struggling suppliers and creating synergy – for example PSA and Fiat Chrysler have merged to facilitate the transition from petrol to electric automobiles. In the post-Covid period the offensive strategy will probably be more frequently adopted than the defensive one.

Post-Covid opportunities

The French M&A market is opening up interesting business opportunities. The post-Covid period has seen a substantial increase in business sales because of executive fatigue, management career changes, and other disruptions. The French recovery plan should further promote M&A deals on the French market.

---

Photo: Dmitry Vereshchagin - stock.adobe.com