We save and we save a lot! Our saving accounts have been growing since the start of the pandemic. Once we realised the crisis was here to stay, our global tendency is to save for uncertain times. This uncertainty makes us consider our options and makes us realise that we need to be prepared. One way of doing that is to have extra money at hand, just in case. The fact that we cannot consume as much as before due to closing of most of the shops, helps in achieving this goal. It is remarkable to see the growth of our saving accounts a year into this pandemic.
Besides adding money to our saving accounts, we’re also looking for returns. The interest rate is at a historic low, and we’re looking for ways to get a good return. Additional money flows into stock portfolios and investing funds or private equity.
The same goes for investments. Many companies have delayed investments, waiting to see the course of the pandemic, experience the effect on their business or sometimes struggling to survive. With the start of the vaccinations worldwide, the end of the pandemic is in sight. Leaving companies with the question of how to prepare for the future and start investing again. A delay in investments also means the possibility of falling behind, your competition is probably looking for strategic investments now.
For the markets of Mergers & Acquisitions (M&A) this is a very fascinating time. Companies which are struggling, are an easy target to acquire. The delayed investments of companies provides a fruitful soil to acquire other companies, maybe even a competitor. Or joint ventures are in the making, realising that a combined effort increases the ability to cope with the situation at hand.
How does this translate to our business? Investments translate into projects. Businesses invest in process improvements, new tools, reorganisations, integrations. The number of projects will increase after the vaccination program is on its way. We are prepared and ready to support. Do you have a different opinion? Please reach out, happy to hear and discuss.
Jan Veerman
Managing Partner
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